Former NSW Labor ministers Tony Kelly, Eddie Obeid and Joe Tripodi have been hit with fresh corruption findings and may face criminal charges after the state's corruption watchdog found they were involved in preparing a "deceptive" cabinet minute to benefit the Obeid family.
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On Thursday, the Independent Commission Against Corruption released its long-awaited report on Operation Credo, its investigation into Obeid-linked company Australian Water Holdings.
The watchdog found Mr Tripodi was "doing Mr Obeid's bidding" in backing attempts by AWH to enter into a lucrative public-private partnership with the state government in 2010.
Similarly Mr Kelly, who was a former Wellington Shire Council general manager during his days in local government, was “knowingly and improperly acting in accordance with what he understood to be the wishes of Edward Obeid Sr," the report said.
The ICAC found the Obeid family had a $3 million stake in AWH, despite their claims the money was advanced as a loan.
It said representations made in legal documents that the money was a loan were "false and were known to be false" by Mr Obeid's son Eddie jnr and AWH's former chief executive and chairman, Nick Di Girolamo.
A string of witnesses who appeared before the ICAC, including Mr Di Girolamo, have escaped adverse findings.
Liberal Senator Arthur Sinodinos, a former chairman of AWH, was not expected to face corruption findings but has also escaped adverse comment in the report.
The ICAC found Eddie Obeid snr and his ministerial allies Mr Tripodi and Mr Kelly were involved in preparing a deceptive cabinet minute to support AWH's push for a multimillion-dollar public-private partnership.
It recommended the DPP consider charging the men with misconduct in public office.
Former NSW premier Barry O'Farrell famously resigned after his evidence that he did not receive a $3000 bottle of wine from Mr Di Girolamo was contradicted by a handwritten note.
The commission clears Mr O'Farrell of any wrongdoing and says "when he gave evidence on 16 April 2014, Mr O'Farrell had no recollection of receiving the wine".
"There is no evidence to the contrary. 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."
The report also noted that there had been an intention to make an adverse finding against another person, whose identity was not disclosed.
However, the High Court findings in Crown prosecutor Margaret Cunneen SC's successful challenge to the watchdog's powers in 2015 "fundamentally affected significant aspects of Operation Credo," the report said.
The timing of the report into Operation Credo was also discussed.
"The Commission does not consider that publication of this report, at this time, will prejudice the right of Edward Obeid Snr and Moses Obeid to a fair trial, given that such a trial will not occur for some time," it said.
Obeid senior and his middle son Moses have been charged over an alleged $30 million coal deal involving the family's rural property at Mount Penny in the Bylong Valley near Mudgee. A trial date has not yet been set.
The Obeid family patriarch is already serving a maximum five-year prison sentence over his secret business dealings at Circular Quay. The Court of Criminal Appeal has yet to release its decision in Obeid snr's appeal against his conviction and sentence.
It was necessary for the report to be handed down before Monday when a new three-commissioner ICAC will commence under the leadership of former Supreme Court judge Peter Hall. The agency was restructured by the Baird government last year.
Although Operation Credo was heard by then commissioner Megan Latham, she has since returned to the Supreme Court leaving Acting Commissioner Reg Blanch to furnish this report.