Jail only appropriate sentence for disgraced ministers Eddie Obeid, Ian Macdonald, court told

A court has been told there’s only one punishment for two disgraced former NSW ministers involved in a conspiracy.

Disgraced ex-ministers Ian Macdonald and Eddie Obeid must spend time behind bars for their conspiracy to fix a coalmining licence tender, a court has been told.

The two former NSW Labor MLCs and Obeid’s son, Moses, were convicted earlier this year of conspiring to commit misconduct in public office over a 2009 mining exploration licence that led to a $30m windfall for the Obeids.

At their sentence hearing on Wednesday, crown prosecutor Sophie Callan SC said full-time imprisonment was the only appropriate sentence for the trio.

Ms Callan referred to the case of former Queensland politician Gordon Nuttall, who was found guilty of corruption offences in 2009 and 2010.

The judge in the Nuttall case had spoken of “the corruption taking hold at the centre of government and its permeating down to the lower echelons, compromising the ability to eradicate it”, she told the court.

The prosecutor argued the need to deter others in the community from committing similar offences was particularly acute when it involved a minister, in this case, Macdonald.

Ian Macdonald agreed to ‘do what he could’ in his role as mineral resources minister in relation to a mining licence that had potential benefits for the Obeids. Picture: NCA NewsWire/Joel Carrett

The marathon trial, which concluded in February, centred on the 2009 granting of a coal exploration licence encompassing a large property owned by the Obeids at Mount Penny in the Bylong Valley, NSW.

Justice Elizabeth Fullerton found the trio had agreed that Macdonald would “do what he could” in his role as mineral resources minister when it came to the mining licence and the Obeids’ financial interests.

Macdonald asked his department for information related to the licence and gave documents to the Obeids or their family members, the court found.

The Obeids ultimately pocketed $30m from the exploration licence after selling their interest in a joint venture Moses Obeid negotiated with Cascade Coal, the company that won the closed licence tender.

There was a “voluminous” amount of evidence to show Moses Obeid’s role in the plot and a comparatively scant amount for Eddie, the court was told.

Eddie Obeid enjoyed a ‘measure of control’ over son Moses (pictured), the court was told. Picture: NCA NewsWire/Joel Carrett

But Ms Callan said the senior Obeid had a “higher moral culpability” for the crime than his son, as he was a member of parliament at the time.

“The fact that Moses Obeid was more active does not necessarily, and in this case the crown suggests does not, indicate he enjoyed a position more senior than the others, if there is to be some hierarchy across the three conspirators,” she said.

She suggested Eddie Obeid enjoyed a “measure of control” over Moses in the conspiracy.

Justice Fullerton said the fact the misconduct generated $60m, half of which flowed to the Obeids, was simply an “objective feature” of how their agreement unfolded.

It could have resulted in a massive profit or in zero dollars, the judge said, adding: “They’re not to be punished for being successful.”

Several letters relating to health conditions suffered by Eddie Obeid, 77, and Macdonald, 72, were tendered to the court by their lawyers.

As well, the court heard, Moses Obeid had an adverse reaction to his first AstraZeneca vaccine and has been advised by doctors to wait a full 12 weeks before receiving a second dose.

Justice Fullerton asked if the 51-year-old’s second dose would be missed or delayed if he is in prison by then.

Ms Callan said Corrective Services had signalled all inmates and staff would “have had the opportunity” to be fully vaccinated by the end of 2021.

The court heard the younger Obeid has been diagnosed with depression and anxiety by forensic psychiatrist Olav Nielssen, who said in a report the conditions were likely triggered by the effects of a decade of litigation and the “public shaming arising from intense media coverage” which had caused Moses to be ostracised in social and business circles.

Justice Fullerton said consideration of adverse media coverage and prior good character would be allowed for Moses Obeid, but not the two former ministers.

The trio were permitted to remain on bail after being found guilty partly due to the strict travel restrictions making it extremely difficult to flee the country.

Lawyers for the Obeids and Macdonald will make submissions on Thursday.

Originally published as Jail only appropriate sentence for disgraced ministers Eddie Obeid, Ian Macdonald, court told