The New South Wales Independent Commission Against Corruption has found two former high-profile Labor MPs acted corruptly and should be referred for possible criminal charges.
ICAC Commissioner David Ipp has advised the Department of Public Prosecutions that former state government ministers Eddie Obeid and Ian Macdonald be considered for possible prosecution over their involvement in the tender process for a coal mine licence in the NSW Hunter Valley.
The ICAC Commissioner has also found Mr Obeid's son, Moses, engaged in corrupt conduct over a car for former Labor minister Eric Roozendaal.
But the Commissioner has found Mr Roozendaal did not act corruptly.
After the largest corruption investigation in New South Wales' history, ICAC Commissioner David Ipp has handed down three reports into allegations against former Mining Minister Ian Macdonald, Labor powerbroker Eddie Obeid and former Treasurer Eric Roozendaal.
Mr Ipp has recommended Mr Macdonald, Mr Obeid and his son Moses be considered by the DPP for possible prosecution over their involvement in the tender process in 2008 for a coal mine in the Hunter Valley.
Mr Macdonald was accused of rigging the tender process in granting a coal mining exploration licence on land owned by Mr Obeid's family at Mount Penny in the Bylong Valley.
Mr Obeid and his family were accused of making 30 million dollars from the granting of the exploration licence.
The Obeids were also accused of disguising their 25 per cent stake in Cascade Coal which won the right to explore for coal at Mount Penny.
Eddie and Moses Obeid have strongly denied the findings in the ICAC report and say they intend to pursue the matter in court.
NSW Labor Opposition Leader John Robertson says he believes Eddie Obeid and Ian Macdonald should be prosecuted over their alleged misconduct.
He says they have already been expelled from the Labor Party.
However Mr Robertson believes the NSW coalition Government should go further and follow the lead of the Queensland government which set up a special prosecutor to investigate political corruption in the 1980s.
"We should see a special prosecutor put in place. That was also put in place in Queensland when the Fitzgerald Inquiry concluded into the Bjelke-Petersen government- a special prosecutor was put in place and I want to ensure that these individuals are tried, I want to ensure that the proper resources are put in place and I'm calling for a special prosecutor because we know the DPP is already over-stretched."
ICAC Commissioner David Ipp also found Mr Macdonald pocketed rewards for facilitating meetings with energy executives when he was Energy Minister.
Mr Ipp said Mr Macdonald used his ministerial influence on a number of occasions to benefit businessman Ron Medich.
The corruption commission found Mr Macdonald was rewarded with the services of a prostitute called Tiffanie, arranged by ex boxer Lucky Gatellari.
ICAC has rcommended the DPP consider Mr Macdonald for the offence of corruptly receiving a benefit from Mr Medich and Mr Gatellari as a reward for favours.
It said he should also be considered for the charge of misconduct in public office.
However ICAC has not singled out former Treasurer Eric Roozendaal with an adverse finding.
He denied allegations that Mr Obeid's family gave him a car worth over $44,000 at a discount of $10,000 in 2007, in return for favours.
ICAC found there was insufficient evidence to show Mr Roozendaal knew of arrangements that led to him benefiting from the discounted car.
The release of the ICAC reports come as NSW Labor continues to struggle in opinion polls ag reports #ainst the coalition led by Barry O'Farrell which won power in a landslide victory in 2011.
But it could also have implications for Labor at a federal level.
Shortly before Commissioner Ipp delivered his findings, Prime Minister Kevin Rudd moved to distance himself from the former NSW Labor ministers.
"The Australian Government welcomes the ICAC report. We've been disgusted, I've been disgusted by what I've seen before ICAC and anyone responsible for corrupt behaviour should face the full force of the law."
But Federal Opposition Leader Tony Abbott believes the reports reflect badly on Kevin Rudd and the Labor Party as a whole.
"We hear Mr Rudd saying that he is disgusted by corruption, but Mr Rudd is only Prime Minister because the NSW Labor Party put him there. And if he ever seriously tackles the rottenness at the heart of the NSW Labor Party, he will be dealt with by the warlords of Sussex Street* again, as he was back in June of 2010."
ICAC Commissioner David Ipp is expected to release another report over coming months into another corruption inquiry involving former minister Ian Macdonald.
Operation Acacia has been examining a coal exploration licence granted by Mr Macdonald to a company run by ex-union boss John Maitland and entrepreneurs.
Mr Ipp will also consider whether the NSW Government should amend mining laws and codes of conduct for MPs and ministers.
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