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theguardian.com, Monday 28 October 2013

Disgraced New South Wales Labor powerbroker subject of more charges over alleged abuse of power

Eddie Obeid is accused of using his political position to influence public officials over leases at Circular Quay. Photograph: Dean Lewins/AAP

A fresh corruption inquiry involving the disgraced former Labor powerbroker Eddie Obeid is under way in Sydney.

On Monday the NSW Independent Commission Against Corruption launched a public inquiry into allegations that Obeid had tried to influence public officials and former NSW Labor frontbenchers, including Michael Costa and Joe Tripodi, to make decisions that would favour business interests connected to his family.

Obeid is expected to give evidence next week.

The inquiry is part of three investigations by the corruption watchdog, codenamed Cyrus, Cabot and Meeka.

The first, Cyrus, involves claims that Obeid lobbied MPs including Costa, Tripodi, Carl Scully and Eric Roozendaal over leases for the Sorrentino restaurant and Quay Eatery at Sydney's Circular Quay – "without disclosing his family's hidden interests in the retail leases".

Counsel assisting, Ian Temby QC, said on Monday said operation Cabot would investigate allegations that Obeid attempted to sway officials to grant "valuable" water licences on Obeid family land at Cherrydale Park, in the NSW Bylong Valley.

There were also suggestions that a water licensing officer, Sue Heaney, was run out of her job because of the Obeid factor.

Temby said disciplinary proceedings were launched against her after Obeid's son Damien complained about a telephone conversation he had had with her.

He reported Heaney had become "agitated and confused" when he told her the then department of water and energy had decided to allow a 860-megalitre water licence at Cherrydale Park, up from a proposed five-megalitre limit – in what Temby described as "by far the most generous allocation in the Bylong Valley".

"[Heaney] was not dismissed but she later took a redundancy from the department and she now works as a massage therapist," Temby said.

The final investigation, Meeka, will look at claims Eddie Obeid helped arrange meetings between the then treasurer, Michael Costa, and Paul Dundon, the principal of a company called Direct Health Solutions.

Icac will hear claims that Obeid had never revealed to Costa that his family and a longtime associate, Rocco Triulcio, together had a $450,000 investment in the company.

Earlier this year Obeid was found to have corruptly influenced the granting of a lucrative coal licence at Obeid family-owned land in the NSW Hunter Valley.

His brother-in-law John Abood is set to give evidence on Monday afternoon.

Assistant commissioner Anthony Whealy QC will preside over the three-week inquiry.

Former MP Eddie Obeid faces a second corruption inquiry | World news | theguardian.com