Eddie Obeid in legal battle for early prison release

Eddie Obeid was famous for leveraging a deal. Now he’s putting those skills to use in his bid to get out of jail early.

Eddie Obeid is fighting for an early release. Picture: Toby ZernaT

Corrupt former politician Eddie Obeid has launched legal action against the state’s prison system after it refused his bid for early release, claiming he is a “security risk”.

Obeid, who is approaching the end of his second stint in jail for corruption that earned him $30 million, made a bid earlier this year to be released to serve the balance as home detention.

The 81-year-old’s family were preparing to celebrate the notorious ex-Labor powerbroker’s return home on Sydney’s North Shore.

But the party was put on ice on February 18 thanks to the decision by Corrective Services NSW to deem Obeid a “security risk” and reject his bid for an early release.

The Sunday Telegraph can reveal that Obeid has launched legal action in the NSW Supreme Court to have the prison system’s call overturned.

Eddie Obeid arrives at the NSW Supreme Court in 2021. Picture: NewsWire/Flavio Brancaleone

According to court records, Obeid’s legal team filed a summons in the Supreme Court on April 3 asking for it to quash the ruling.

He is also asking for the court to find that he is suitable for home detention.

The former politician is fighting the case under administrative law, which regulates government decision making.

The case is listed for its first appearance in the court on May 7.

The news can be revealed a week after NSW Crime Commissioner Michael Barnes announced Obeid would not be pursued for the $30 million he made from corrupt coal licence deals.

The commissioner revealed the crime fighting organisation’s investigation showed the money had been funnelled through a complex system of trusts and loans.

Obeid has been in jail since 2021, when he was sentenced to a maximum seven years.

This came after he was found guilty of rigging a tender process for a massive coal exploration licence in the Bylong Valley areas while he was a minister in the NSW Government.

Fellow Labor minister Ian MacDonald was also sentenced over the infamous rort. MacDonald was sentenced to a maximum 14 years after being found guilty of corruptly awarding mining licences.

Ian Macdonald was jailed for corruption. Picture: Toby Zerna

Obeid, who was well known in his political career for his ability to cut a deal for his own benefit, is eligible to be considered for parole on August 20.

His maximum sentence will expire on October 20, 2028.

It is the second sentence Obeid has served since he was brought down by a probe conducted by the Independent Commission Against Corruption.

Former premier Kristina Keneally is not accused of wrongdoing. Pic: Renee Nowytarger

Obeid’s first case concluded in 2016 when he was found guilty of misconduct in public office and was sentenced to a maximum five years’ jail.

He was granted parole in 2019.

Before his release was rejected, Obeid planned to spend as much time out of jail before his third trial begins this year.

Obeid is accused of misconduct of public office by allegedly using his position as a NSW politician to promote the interests of a company he was linked to.

An earlier hearing of the case was told that Obeid is accused of attempting to influence fellow politicians Michael Costa, Nathan Rees, Morris Iemma, Phillip Costa and Kristina Keneally. They are not accused of any wrongdoing.

Obeid has pleaded not guilty.