Jailed former state Labor MP Eddie Obeid and three of his five sons have agreed to pay $5.25 million to the corruption watchdog and a raft of creditors, including the state of NSW, or face bankruptcy orders over unpaid legal costs.<\/p>\n
In 2020, the NSW Supreme Court ordered Obeid senior and his sons Moses, Paul and Eddie junior to pay $5.07 million to cover the legal bills of the Independent Commission Against Corruption and others following their failed lawsuit against the watchdog and its officers.<\/p>\n
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The Obeid family lost their lawsuit against the ICAC. Photo shows, from left, Moses Obeid, Eddie Obeid jnr, and Paul Obeid, and inset Eddie Obeid. <\/span>Credit:<\/span>Peter Rae, Daniel Munoz<\/cite><\/p>\n The ICAC filed Federal Court bankruptcy proceedings against the Obeids in January this year when the money was not paid.<\/p>\n Six supporting creditors, including the state of NSW, ICAC officers and Sydney barrister Geoffrey Watston, SC, who was counsel assisting the ICAC in high-profile inquiries and was also unsuccessfully sued by the Obeids, joined the bankruptcy proceedings.<\/p>\n In orders made on Thursday, released publicly, the court noted the Obeids had given an undertaking to consent to sequestration, or bankruptcy, orders being made against them if they did not pay the ICAC and supporting creditors the sum of $5.25 million by October 28, when the matter is expected to return to court.<\/p>\n They also undertook to \u201cnot deal with their assets other than in the ordinary course of business until the next return date; and not to incur debts save for ordinary living expenses and with respect to the financial assistance from [Obeid family-linked company] Catarina Village Pty Ltd until the next return date\u201d.<\/p>\n On the basis of those undertakings, the court ordered by agreement of the parties that the proceedings be adjourned until 10.30am on October 28. Costs of the short hearing were reserved.<\/p>\n The $5.25 million figure covers a significant proportion, but not all, of the legal costs owed by the Obeids to creditors in relation to the ICAC proceedings as well as separate proceedings in which costs orders were made against the men in favour of government parties.<\/p>\n Obeid snr, 78, is in prison after being sentenced in October last year to a minimum of three years and 10 months for his role in conspiring to commit wilful misconduct in public office in relation to a lucrative coal exploration licence over the Obeid family farm in the Bylong Valley.<\/p>\n Moses Obeid was also sentenced last year to a minimum of three years in prison over the same deal.<\/p>\n A notice of intention to appeal is currently before the Supreme Court.<\/p>\n The Obeids launched Supreme Court proceedings against the ICAC and others in 2015, seeking damages in relation to the inquiry that exposed the coal deal. They claimed they were targeted unfairly by the watchdog.<\/p>\n In 2016, Justice David Hammerschlag dismissed the case and said parts of it bordered on the \u201ceccentric\u201d.<\/p>\n In July this year, Obeid snr was charged with his former Labor colleagues Joe Tripodi and Tony Kelly with misconduct in office following a separate ICAC investigation into Obeid-linked infrastructure company Australian Water Holdings. The men are expected to plead not guilty to those charges.<\/p>\n The Morning Edition newsletter is our guide to the day\u2019s most important and interesting stories, analysis and insights. <\/i><\/b>Sign up here<\/i><\/b>.<\/i><\/b><\/p>\nMost Viewed in National<\/h2>\n
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