Operation Credo: Eddie Obeid, Tony Kelly and Joe Tripodi corrupt, DPP to investigate criminal charges

ICAC has found that the DPP should investigate laying charges against former ministers Eddie Obeid, Tony Kelly and Joe Tripodi in relation to the Australian Water Holdings affair.

Three former NSW Labor ministers, Eddie Obeid, Tony Kelly and Joe Tripodi are facing the prospect of prosecution for corruption following a ruling from ICAC.

THREE former NSW Labor ministers, Eddie Obeid, Tony Kelly and Joe Tripodi have been found corrupt and could face prosecution, the ICAC has ruled.

The damning report by the Independent Commission Against Corruption inquiry into the controversial water infrastructure company Australian Water Holdings, also found former Labor staffer Laurie Brown, Mr Kelly’s former chief of staff, engaged in “serious corrupt conduct”.

ICAC finds the DPP should investigate laying charges against disgraced former MP Eddie Obeid.

Premier Gladys Berejiklian said she welcomed the findings “that outline even more corrupt conduct by former NSW Labor ministers”.

She said it was another example of the way “the former Labor government held the people of NSW in contempt and ran the state to line its own pockets”.

But despite fears that federal minister Arthur Sinodinos may be criticised for being a poor witness during the inquiry into Australian Water Holdings’ boss Nick Di Girolamo’s dealings with Labor and Liberal parties, he has escaped criticism.

Senator Sinodinos responded this morning to the report, noting there was no “adverse findings or commentary” against him.

“This brings to an end a long and comprehensive process,” he said in a statement.

“I thank my family and colleagues for their support throughout.”

Today’s damning report found Obeid Sr, Kelly and Tripodi “engaged in serious corrupt conduct in relation to their actions concerning a public-private partnership (PPP) proposal by Australian Water Holdings (AWH) Pty Ltd which, had it proceeded, could have resulted in substantial financial rewards for that company and the Obeid family”.

The report made no adverse findings against any Liberal figure, including Mr Di Girolamo himself, and former premier Barry O’Farrell to whom Mr Di Girolamo had gifted a $3,000 bottle and which ultimately led to his resignation.

But it does recommend that the DPP consider laying charges against Obeid Sr, Mr Kelly, Mr Brown and Mr Tripodi for misconduct in public office.

Former NSW Labor minister Eddie Obeid found to benefit from AWH deal if it went ahead.

The report comes three years after the ICAC inquiry into the controversial water infrastructure company Australian Water Holdings concluded.

During Operation Credo, the ­commission heard evidence that ­AWH used Sydney Water contract money to deliver water infrastructure in northwest Sydney to splash $10,000 on a football corporate box, hired limousines, spent tens of thousands in Liberal Party donations and that tens of thousands were allegedly paid to a political slush fund.

ICAC cleared former premier Barry O’Farrell over the gift of an undisclosed $3,000 bottle of Grange.

Despite resigning as premier after misleading the Commission over the gift of an undisclosed $3,000 bottle of Grange from Mr Di Girolamo at the time he was lobbying the government for a $1 billion contract, the Commission has cleared former premier Barry O’Farrell.

It says: “When he gave evidence on 16 April 2014, Mr O’Farrell had no recollection of receiving the wine.

“The Commission is satisfied that there was no intention on Mr O’Farrell’s part to mislead the Commission on either occasion that he gave evidence

“Mr O’Farrell gave further evidence, which other evidence bears out and the Commission accepts, that he never acceded to any request from Mr Di Girolamo or anyone else to give AWH special assistance.”

Tony Kelly was today found to have acted corruptly in relation to the AWH PPP proposal.

The ICAC report notes that “Edward Obeid Sr’s son, Edward Obeid Jr, was working for an AWH-related company, Australian Water, from at least about July 2007. By that time, Edward Obeid Sr was aware that his son was involved with AWH, and by November 2007 he knew that AWH wanted to proceed with a PPP proposal for the purchase, supply and operation of water infrastructure in the North West Growth Centre in northwestern Sydney.”

The watchdog found that “by July 2008 there was interest in an Obeid family entity acquiring shares in AWH”.

Senator Arthur Sinodinos escaped criticism in this morning’s ICAC findings.

“The Commission is satisfied that Edward Obeid Sr used his position as a member of parliament to promote AWH’s interests to a number of ministers and premiers at a time when he knew that his family or a family entity could benefit if they acquired shares in the company and the PPP proposal proceeded.”

ICAC found that Mr Kelly’s former chief of staff Laurie Brown also engaged in “serious corrupt conduct” through his involvement in preparing the 2010 cabinet minute, with the intention of enabling AWH to proceed to direct negotiation with the state government.

It also found a draft cabinet minute had recommended the AWH PPP proposal be rejected as it was not a good deal for the state.

AWH boss Nick Di Girolamo emerges unscathed from the report.

Joe Tripodi found guilty of corruption.

“The McGlynn draft cabinet minute was sent to Mr Brown at Mr Kelly’s office. As minister for infrastructure, Mr Kelly was responsible for submitting any cabinet minute on the AWH PPP to the Budget Committee of Cabinet,” the commission found.

But Mr Brown, an old friend of Eddie Obeid Sr, helped draft a new minute recommending the proposal “knowing that the new minute substantially misrepresented the truth and was highly deceptive”. He did this, the watchdog found “because he believed it was what Edward Obeid Sr wanted”.

He did this with the help of material from Mr Tripodi, said the Commission.

“All of these actions were undertaken with the intention of improperly favouring Edward Obeid Sr by enabling AWH to proceed to direct negotiation with the NSW Government concerning its PPP proposal for the North West Growth Centre.”

The watchdog said the DPP should consider prosecuting Eddie Obeid Sr, Mr Kelly, Mr Brown and Mr Tripodi for “common law criminal offences of misconduct in public office”.

Operation Credo also investigated allegations in relation to approaches made to the Liberal Party by AWH but it found no findings of corrupt conduct.

Acknowledging the findings that no Liberal figure had been found tainted, Premier Berejiklian said the NSW government “has a zero tolerance approach to corruption and we have implemented a range of measures to reflect this”.