Former Labor New South Wales Minister Eddie Obeid to retain $30 million linked to a corrupt coal license agreement. This move comes despite the fact that he had been found guilty of misconduct. In October 2021, the now 81 year old Obeid was again jailed. He colluded with his son, Moses Obeid, and ex-minister Ian Macdonald to win a coal exploration license for their farm, Cherrydale Park, in the Bylong Valley of the NSW Hunter Valley, a coalmine corridor.
This was perhaps most evident in 2013 when the state’s corruption watchdog launched an investigation into the license awarded for Cherrydale Park. Through their inquiry, these lawmakers discovered widespread wrongdoing. At first, Obeid was in line to receive an extra $30 million, but the state government eventually revoked the license altogether. The legal battle surrounding the funds has raised questions about the effectiveness of the state’s crime policies and the implications for public trust in governance.
Legal Background and Conviction
Obeid’s case proceeded to a judge-alone trial, where he was found guilty. In July, the court convicted him of conspiring to commit misconduct in public office. As the court recently disclosed, Obeid and his cronies rigged the licensing game. They were trying to make a killing in the stock market from coal development on their property.
NSW Crime commissioner Michael Barnes declared that they reached the regrettable cut. Even with the high crime seriousness level and the $30 million available to the government, they were unable to freeze Obeid’s assets. There is no easy mechanism for confiscating the money, he elaborated.
“There is not $30 million sitting in a pot somewhere that we can just go and snaffle,” – Michael Barnes
Barnes continued, reminding the public that the agency confiscates millions from other criminals on an annual basis. Not every case ends with the recovery of illicit proceeds.
Public Reaction and Political Response
Local U.S. politicians have expressed outrage at the announcement, and the move has rubbed most citizens the wrong way. In response to the announcement, NSW Opposition Leader Mark Speakman expressed his dismay. He announced firmly that it is intolerable that a convicted corrupt ex-minister should retain so much money. Connecting to the now and future economic state where many Americans are experiencing extreme economic hardship, Sen.
“At a time when many are drowning in bills, skipping meals and scraping every dollar to survive, a convicted corrupt former NSW Labor minister has been allowed to walk away with $30 million,” – Mark Speakman
Police Minister Yasmin Catley voiced her discontent, describing Obeid’s actions as the “worst case of the misuse of a person’s office.” She reacted strongly with disappointment that attempts to get those funds back wouldn’t be followed through.
Investigative Efforts and Future Implications
Barnes described the extensive investigative measures his department undertook. He did claim that they left no stone unturned in trying to recover the money. He cautioned that continuing to pump resources into this unwinnable legal fight would ultimately be self-defeating. Doing so could distract from and overshadow more pressing, transformative needs across the justice system.
“We certainly have gone after it. We have got the records, we have briefed external forensic accountants and lawyers, we have looked at every possible angle to retrieve this money, but there is no benefit to the community of us simply launching proceedings we are most likely to lose,” – Michael Barnes
“All Australians should have confidence that no act of corruption will ever result in personal enrichment,” said Premier Dominic Perrottet. Obeid should not make a dime financially from what he did.
“You can’t act corruptly and keep it,” – Dominic Perrottet
