Former Labor MP Eddie Obeid failed to mention his family's 90 per cent stake in two Circular Quay restaurants when lobbying an official over their lease agreements, a Sydney jury has been told.
Obeid, 72, is standing trial at the NSW Supreme Court charged with wilful misconduct in public office.
It's alleged that between August and November 2007, Obeid made representations to the then-deputy chief executive of NSW Maritime Authority, Steve Dunn, over restaurant leases at Circular Quay.
The court heard the leases expired in 2005, and leaseholders were anxious to negotiate new agreements directly rather than allowing them to go to public tender, as the Maritime Authority had planned.
The crown alleges Obeid purported to be acting in an official capacity as a member of the NSW Legislative Council while making the representations, but had his own private interests at the forefront of his mind.
Obeid had commercial, beneficial, family or personal interests in the leases of two of the Circular Quay restaurants - Cafe Sorrentino and Quay Eatery - which he failed to disclose to Mr Dunn, the court heard.
In his opening address, crown prosecutor Maurice Neil QC said the restaurants were purchased for $2 million in 2002 and operated under the banner of Circular Quay Restaurants Pty Ltd.
Mr Neil said 90 per cent of the interests in the private company flowed through to an Obeid family trust.
The court heard Obeid family members did not work at either of the eateries, but collected weekly cash payments of about $1000.
"Payments were regularly made in cash to members of the Obeid family ... principally Mrs Obeid, Mr Obeid's wife," Mr Neil said.
Mr Neil said Obeid had a duty to disclose any conflict of interest while serving as a member of parliament.
"The crown case is that the accused, in this matter, acted in wilful and serious breach of this obligation in his dealings with Mr Dunn," he said.
The trial, before Justice Robert Beech-Jones, continues.
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