ICAC has much at stake in corruption verdict on Eddie Obeid and Ian Macdonald

The decision in the marathon corruption trial that has embroiled former NSW ministers Eddie Obeid and Ian Macdonald will have far-reaching consequences.

When NSW Supreme Court judge Elizabeth Fullerton decides the fate of former Labor ministers Ian Macdonald, Eddie Obeid, and his son Moses on Monday, the verdict will have far-reaching consequences, not just for the men involved, but for the future of the Independent Commission Against Corruption.

The Crown has alleged that ­former mineral resources minister Ian Macdonald, 72, was part of a criminal conspiracy with former Labor kingpin Eddie Obeid, 77, and Moses Obeid over the creation of coal exploration leases. Almost 10 years have elapsed since an ICAC investigation found that the trio had engaged in corrupt conduct, but on Monday it will be Justice Fullerton who will have the last word.

The verdict comes as a parliamentary committee overseeing ICAC examines the impact of being adversely identified by the agency, and whether an exoneration protocol should be developed. While many applaud ICAC for exposing wrongdoing, others claim it holds too much power to ruin reputations.

There is no denying ICAC has courted significant controversy. Premiers who fell victim included Nick Greiner, and then Barry O’Farrell, who famously resigned over a $3000 bottle of Grange. In April 2015, the High Court found ICAC had stepped outside its statutory powers by investigating respected Crown prosecutor Margaret Cunneen SC.

But one would be hard pressed to find a family that has lost more than the Obeids at the hands of ICAC.

Last year, Obeid Sr and three of his five sons were ordered to pay $5m in legal costs by the NSW Supreme Court after they brought a failed lawsuit against ICAC, claiming the agency had targeted them unfairly.

In May 2017, Obeid was committed to stand trial on conspiracy charges with Mr Macdonald following an ICAC probe that concluded in 2013. The watchdog found the former ministers had engaged in corrupt conduct in their actions involving the Mount Penny mining tenement in the Bylong Valley.

But the indictment does not accuse Mr Macdonald and the Obeids of engaging in misconduct. Instead, it alleges that they conspired – or reached an agreement – for Mr Macdonald to misconduct himself between September 2007 and January 2009.

When prosecutor Sophie Callan SC closed the Crown’s case in February, she said there was an “overwhelming circumstantial case” that proved the trio’s guilt.

The Obeids argue they never had access to “inside information” about government plans to open up areas of NSW for coal exploration, including near land owned by the Obeids at Mount Penny.

The information allegedly provided by Mr Macdonald, in breach of his obligations as a minister, ­enabled the Obeids to acquire a 25 per cent stake in the winning bid by Cascade Coal. When Cascade was awarded the exploration licence, the Obeids were to receive $60m for the sale of their share in the company.

At the outset of the judge-alone trial in February 2020, the court was told the Obeids had planned to be “silent partners” with whichever mining company won the licence.

At trial, Ms Callan said Mr Macdonald had committed eight acts of misconduct.

Justice Fullerton will deliver her verdict at 11am on Monday.