Corrupt, dodgy ALP ratbag set to have his millions reefed back

Eddie Obeid the ALPs virtual mafia don is set to have a good chunk of his ill-gotten millions reefed back by the NSW government.

The state government is set to pass extraordinary laws to strip corrupt former Labor minister Eddie Obeid and his family of at least $30 million in profits from a coal deal at the centre of a historic corruption probe.

A day after Premier Barry O’Farrell announced the government would pass special laws to tear up three corruption-tainted coal exploration licences, Mr O’Farrell said it was also working on laws to confiscate the proceeds of corrupt activity by former Labor figures and businessmen.

He said on Tuesday the laws to cancel the licences would be introduced in state Parliament next week, while additional laws to claw back proceeds of corrupt coal ventures from Mr Obeid and others were still
in development.

“I’m told that it will take a little bit longer,” Mr O’Farrell said.

After sensational public inquiries last year, the Independent Commission Against Corruption recommended in December that Cascade Coal’s exploration licences at Mount Penny and Glendon Brook, and NuCoal’s exploration licence near Doyles Creek in the Hunter Valley were “so tainted by corruption” they should be cancelled.

It also recommended special legislation modelled on proceeds of crime laws be passed to recover the profits of corrupt conduct from Mr Obeid and others.

The new laws would go further than existing legislation by allowing profits to be clawed back from people with knowledge of corrupt conduct rather than with proof of illegal activity.

New Zealand needs an ICAC, with similar powers. it could virtually pay for itself with prosecutions.


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  • wazsah

    I am amazed the NSW Govt thinks it needs any more laws to take away these corruptly granted coal EL’s.
    I would have thought they had plenty of power in the Mining Act and associated multi regulations as it is to cancel the EL’s and should have informed the holders over a year ago to minimise possible claims for compensation. We can only hope warnings of cancellation were given at the earliest.
    I was amazed a year ago when the NSW Premier was quoted as saying he was asking ICAC about this issue of taking away the EL’s.
    ICAC is a criminal & corruption investigation outfit – they would know no more about the operation of mineral exploration law than say a law firm who had mining company clients.
    The NSW Govt is custodian of the States mineral rights and the Premier was unsure what powers he and his Minister had!! Crazy.
    What we can be certain of is that extra laws and regulatory activity – red & green tape already passed or flagged – springing in part from these Obeid scandals will harm (add costs to) all mineral – and oil n gas exploration in NSW.
    Imagine these coal licence scandals are like a fox stealing your chickens.
    Instead of carefully shooting the fox with a 22 – the NSW Govt blasts off two barrels of birdshot and kills half the chickens.

  • GerardB

    Premier Barry O’Farrell is on the right track with this one. He is doing more than cancelling corruptly granted mining and exploration licenses, he will be confiscating the proceeds of corrupt conduct. He is cleaning the Labor bastards out. After which we will no longer be able to say “Labor politicians are the best that money can buy”. Don’t worry Wazsah, he is only going after the criminals in the mining and other industries.