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Icac finds Eddie Obeid and Joe Tripodi engaged in corrupt conduct Icac finds Eddie Obeid and Joe Tripodi engaged in corrupt conduct
(about 2 hours later)
The NSW corruption watchdog has found former Labor MPs Eddie Obeid and Joe Tripodi engaged in corrupt conduct. The independent commission against corruption (Icac) in New South Wales has found former state Labor MPs Eddie Obeid and Joe Tripodi, as well as former deputy CEO of the Maritime Authority, Steven Dunn, to have engaged in corrupt conduct.
The finding by the Independent Commission Against Corruption (Icac) relates to retail leases at Circular Quay on the Sydney harbour foreshore in which Obeid's family had financial interests. The release of two reports on three investigations, named Cabot, Meeka and Cyrus, on Thursday handed down the corruption findings relating to rural water licences in the Bylong Valley, a staff management company, and cafe leases in Sydney’s Circular Quay respectively.
Icac also made a finding of corrupt conduct against Steve Dunn, the former deputy chief executive officer and property division head of the Maritime Authority of NSW. Operation Cyrus found Obeid to have engaged in corrupt conduct by allegedly lobbying former ministers Carl Scully, Michael Costa and Eric Roozendaal, as well as Dunn and Tripodi over government policy which would affect leases on cafes in Circular Quay.
"The commission finds that Mr Obeid misused his position as an MP to make representations to ministers and Mr Dunn on various occasions in relation to the management of retail leases at Circular Quay," the watchdog said in its report released on Thursday. Obeid was accused of failing to disclose a family interest in the cafes, while lobbying to have the leases renewed without a tender process taking place, which would financially benefit his family.
The representations were made to the former Labor minister Carl Scully around 2000, and former ministers Michael Costa and Eric Roozendaal between 2003 and 2006, involving the terms of the leases. At the time of lobbying Scully, Icac said, Obeid “was influenced in making the representations by knowing that Circular Quay leaseholders had donated $50,000 to the Australian Labor party as payment for carrying out of what they understood to be a promise that their interests as leaseholders would be looked after by the government”.
In Scully's case, Icac said it was suggested the minister consider offering new leases with five-year terms and options for renewal for five years. In November Obeid told the commission he had not disclosed his sons’ interests in the business because he wanted his lobbying to be taken on “merit”.
This was at a time when Obeid knew the leaseholders had donated $50,000 to the Australian Labor party as payment for carrying out what they understood to be a promise that their interests would be "looked after". Icac has referred Obeid to the director of public prosecutions (DPP) for “misconduct in public office” relating to his alleged lobbying of Costa and Roozendaal to change government policy affecting the Circular Quay leases, and for lobbying of former minister Tripodi to change government policy regarding leaseholders.
Costa and Roozendaal were asked to consider changing government policy to allow direct negotiations for new leases with existing leaseholders, rather than hold an open tender process, Icac said. Tripodi was also found to have engaged in corrupt conduct by not disclosing to the cabinet his awareness of Obeid’s connections to the cafes, and Dunn for using his public official position to bring about a change in Maritime’s Commercial lease policy in order to benefit Obeid. However neither man was referred to the DPP.
But Obeid did not disclose his family had an interest in the Circular Quay leases and would benefit financially if the policy was changed. “This is because there is insufficient admissible evidence upon which to base a prosecution,” said the report.
Obeid also made a similar representation to Tripodi. Operation Cabot related to rural water leases in the Upper Hunter region’s Bylong Valley, and found Obeid used his position as an MP to “improperly influence” Dunn to use his own contacts at the Department of Water and Energy (DWE) to seek information on water licences in the Bylong Valley and Cherrydale Park, and influence an associated lender of the Obeids.
"Mr Tripodi engaged in corrupt conduct in 2007 by deliberately failing to disclose to his cabinet colleagues his awareness of the Obeid family's financial interests in Circular Quay leases," Icac said. Obeid dismissed the findings against him, telling ABC radio Icac was one-sided and “a one-way street”.
"Mr Dunn engaged in corrupt conduct in 2007 by using his public official position to benefit Mr Obeid and the Obeid family by effectively bringing about a change to the commercial lease policy, to allow for direct negotiations with existing Circular Quay leaseholders." “It’s all Hollywood style, it’s all about grabbing media headlines,” said Obeid.
Icac said the director of public prosecutions should be asked to consider prosecuting Obeid for criminal offences of misconduct in public office. It did not make a similar recommendation about Tripodi. “As far as I’m concerned, unless the DPP take up any of these inquires … we are not in a position to be able to defend ourselves.”
Mr Obeid likened ICAC to a Hollywood production, saying he thought there was a "one per cent" chance of the DPP bringing a case against him. Obeid said he and his family would “vigorously defend” themselves if any charges were brought, although he said the chance of that happening was 1%.
"If and when it does turn up, if ever it will turn up in a court of law, we will defend it vigorously because we are innocent of any of the allegations which Icac's brought up," he told ABC radio. “We are innocent of any of the allegations that Icac brings up.”
He described Icac's investigations into him as a political witchhunt. Icac criticised the current parliamentary code of conduct as “feeble” and “virtually worthless in addressing the problems identified in this investigation”.
"It is all a media spectacle and it is all Hollywood style and it is all about grabbing media headlines," he said. It reiterated a previous recommendation that it be amended. A joint inquiry by the The Legislative Council Privileges Committee and the Legislative Assembly Privileges and Ethics Committee has already been established.