NSW ICAC finds Obeid, Tripodi, Dunn engaged in corrupt conduct

NSW Independent Commission Against Corruption media release 5 June 2014:

 Findings of corrupt conduct

Operation Cabot

The ICAC found that Edward Obeid Sr engaged in corrupt conduct by misusing his position as a member of Parliament (MP) to benefit his family's financial interests by improperly influencing Steve Dunn, a senior bureaucrat formerly within the Department of Water and Energy (DWE) in the discharge of Mr Dunn's public official duties. The nature of the improper influence was that:

* Mr Dunn was to use his contacts at the DWE to seek information about water licences in the Bylong Valley for Edward Obeid Sr and to facilitate Edward Obeid Sr speaking with a DWE official to obtain further information about water licences affecting Cherrydale Park

* Mr Dunn was to use his position within NSW Maritime and his former position with the DWE to reassure the owner of Cherrydale Park, John Cherry, that there were no plans to place restrictions on  Cherrydale Park water licences so that Mr Cherry would not reduce the amount he would lend the Obeid family for the purchase of that property.

Edward Obeid Sr also engaged in corrupt conduct by misusing his position and influence as an MP to benefit his family's financial interests by engaging then DWE director-general Mark Duffy so that, in the carrying out his official functions, Mr Duffy would unwittingly fulfil Edward Obeid Sr's expectations that his financial interests with respect to the water licences affecting Cherrydale Park would be favoured.

Operation Meeka

The Commission found that Edward Obeid Sr engaged in corrupt conduct by misusing his position as an MP to further his own interests by arranging for finance minister Michael Costa to meet with businessmen Paul Dundon and Mitchell Corn for the purposes of them promoting Direct Health Solutions Pty Ltd (DHS) to the NSW Government so as to benefit DHS and without disclosing the Obeid family's financial interest in DHS.

Operation Cyrus

The Commission that the Hon Edward Obeid engaged in corrupt conduct by misusing his position as an MP:

* in about 2000 to make representations to minister the Hon Carl Scully that Mr Scully should benefit Circular Quay leaseholders by ensuring they were offered new leases with five-year terms and options for renewal for five years at a time when Mr 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

* between 2003 and 2006 by making representations to ministers Michael Costs and the Hon Eric Roozendaal to change government policy to allow for direct negotiations for new leases with existing Circular Quay leaseholders rather than proceed with an open tender process and deliberately failing to disclose to them that his family had interests in Circular Quay leases and would benefit from such a change in policy

* to benefit his family's financial interests by making representations to the Hon Joseph Tripodi and Steve Dunn to pressure them to change government policy to allow for direct negotiations for new leases with existing Circular Quay leaseholders rather than proceed with an open tender process.

The ICAC found that 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, knowing that those interests would benefit from Cabinet's endorsement of changes to the Maritime Authority of NSW's Commercial Lease Policy by effectively eliminating any material prospect of a public tender process for those leases and instead permitting direct negotiations for their Circular Quay tenancies.

The Commission found that 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, knowing that the Obeid family's financial interests would benefit from the change in policy.