NSW Labor corruption inquiry to report findings

Icac to hand over reports dealing with allegations against powerbroker Eddie Obeid and former minister Ian MacDonald

A corruption investigation into whether the family of a Labor party powerbroker made tens of millions of dollars through rigging a coal mining process will come to a close on Wednesday with the findings being handed to parliament.

The Independent Commission Against Corruption (Icac) is preparing to hand down the reports into three inquiries into the dealings of New South Wales Labor politicians when their party was in state government.

Operation Jasper examined the creation of the mining tenement Mount Penny south-west of Sydney in the Bylong Valley in 2008 by then mining minister Ian MacDonald.

The family of MacDonald's colleague, Labor party powerbroker Eddie Obeid, as well as friends, had bought up vast tracts of land in the months before and after the tenement was created. The family made about $30m from selling the land and their investment in a company, Cascade Coal, which eventually won the mining exploration licence.

Icac examined claims that Obeid and his family had inside knowledge the tenement was going to be created and also influenced the mining licence process in the area.

Operation Jarilo heard allegations ex-boxer Lucky Gattellari and developer Ron Medich offered Macdonald rewards or inducements in return for favourable treatment from the government.

It was alleged that Medich had given MacDonald his pick from a group of girls and he had chosen a prostitute known as Tiffanie who he met up with in a Four Seasons hotel room. It was accepted the pair did not have sex.

Operation Indus investigated allegations that former roads minister Eric Roozendaal received a $10,800 discount on a Honda from Obeid's family in return for favours.

The NSW opposition leader, John Robertson, said the hearings, which were spread over six months, had meant Labor had suffered in the polls and distracted from focus on the performance of the state's current Liberal government.

He said he was looking forward to the reports being handed down. "The fact is that Icac is not there to allow [premier] Barry O'Farrell off the hook," he said.

"It will be good to get this report on the table so that Barry O'Farrell has got nowhere to hide."

Icac will hand its findings to the NSW parliament on Wednesday morning and they will then be made public.

Contributor

Bridie Jabour

The GuardianTramp

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