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ICAC to hand down Labor findings

The NSW corruption watchdog will hand down its findings into three former high-profile Labor MPs.

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Source: AAP


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It's judgment day for NSW Labor.

Three former high-profile MPs will learn their fate when findings are handed down on Wednesday following the largest corruption investigation in the state's history.

The corruption watchdog will release three reports into allegations against former mining minister Ian Macdonald, Labor powerbroker Eddie Obeid and former treasurer Eric Roozendaal.

Mr Obeid's son Moses also faces referral to the Director of Public Prosecutions for possible criminal prosecution.

Labor could be dogged by years of prolonged court battles with all major parties having so far denied any guilt.

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NSW Opposition Leader John Robertson this week said he wanted the book thrown at anyone found to have acted corruptly.

"The shocking revelations that we have seen play out at ICAC have put a handbrake on the polls," he said.

"It will be good to get this report on the table so that Barry O'Farrell has got nowhere to hide."

The issue is killing state Labor in NSW, with the latest Newspoll showing the coalition leading the ALP 61-39 on a two-party preferred basis.

Mr Robertson has already expelled Mr Macdonald and Mr Obeid from the party, and called for a special prosecutor to speed up any charges recommended by the Independent Commission Against Corruption (ICAC).

Prime Minister Kevin Rudd is seeking to mitigate a voter backlash over the findings by revealing later this week how NSW Labor will clean up its act.

But shadow treasurer Joe Hockey on Tuesday said the sordid allegations aired at ICAC were a reflection of "the whole of Labor".

"Labor is rotten to the core ...

"We look forward to hearing what ICAC has to say about the real facts behind the state of Labor."

The findings follow six months of sensational hearings and more than 150 witnesses.

It opened in November last year with counsel assisting the inquiry, Geoffrey Watson, SC, saying "it is corruption on a scale probably unexceeded since the days of the Rum Corps" 200 years ago.

He was referring to allegations uncovered by Operation Jasper that Mr Macdonald rigged a 2008 tender process to grant a coal licence over land at Mount Penny owned by the Obeid family.

It enabled the Obeids to make $30 million, with the prospect of earning at least $70 million more.

Operation Jarilo heard allegations that ex-boxer Lucky Gattellari and businessman Ron Medich offered Mr Macdonald rewards or inducements - including the services of a prostitute called Tiffanie - to arrange meetings with state energy executives.

Former roads minister Eric Roozendaal was at the centre of Operation Indus, which looked into claims he received a $10,400 discount on a Honda from Mr Obeid's family in return for favours.

It's expected to take the commissioner until at least August to deliver findings on a fourth operation - Acacia - which probed a coal exploration licence granted by Mr Macdonald to a company run by ex-union boss John Maitland and entrepreneurs.

ICAC Commissioner David Ipp has the power to recommend the DPP consider prosecuting those he's found to have acted corruptly.

He will also consider whether the NSW government should amend mining laws and codes of conduct for MPs and ministers.

Corruption findings by Commissioner Ipp have the potential to prevent Cascade Coal receiving approval to develop a potential billion-dollar mine at Mount Penny.


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