Former NSW Labor powerbroker Eddie Obeid has been released from prison on parole, marking the end of another chapter in one of Australia’s most notorious political corruption scandals. The 81-year-old former minister walked free from custody after serving time for his role in conspiracy charges related to mining licence corruption.
Obeid was serving a seven-year sentence with a non-parole period of five years and three months for conspiring with former Labor minister Ian Macdonald to grant a mining lease over the Obeid family’s farm at Bylong. The scheme delivered a $30 million windfall to his family’s business empire.
Former NSW minister Eddie Obeid
A Legacy of Corruption That Shook NSW Politics
Edward Moses Obeid served as a member of the New South Wales Legislative Council between 1991 and 2011, representing the Labor Party, and held the portfolios of Minister for Fisheries and Minister for Mineral Resources from 1999–2003.
During his parliamentary career, Obeid was considered a significant “power broker” in the NSW Labor Party’s dominant right-wing faction, known as The Terrigals. However, his political influence collapsed following extensive investigations by the Independent Commission Against Corruption (ICAC) between 2012 and 2014.
The ICAC found that Obeid acted in a corrupt manner in relation to cafe leases at Circular Quay and misused his position as a Member of Parliament to benefit his family’s financial interests. These investigations revealed a web of corruption involving water licences, mining deals, and cafe leases that personally enriched the Obeid family while he held public office.
Multiple Convictions Paint Picture of Systemic Abuse
Obeid’s criminal history spans multiple cases. His first major conviction came in December 2016, when he was sentenced to five years in jail with a non-parole period of three years for misconduct in public office regarding lobbying for Circular Quay cafe lease renewals without disclosing his family’s financial interests.
He was released on parole in December 2019 after serving three years, but his freedom was short-lived. In July 2021, Obeid, together with his son Moses and former Labor minister Ian Macdonald, were found guilty of conspiracy charges related to the Bylong Valley mining licence.
The coal exploration licence granted to the Obeid family property generated substantial profits while Macdonald was serving as resources minister. Justice Elizabeth Fullerton found the objective seriousness of the conspiracy “was one of the highest order” when sentencing the trio.
Son Also Faces Extended Prison Time
Obeid’s son Moses received additional jail time in 2024 after admitting he lied to ICAC during corruption investigations. He was sentenced to two years’ jail with a backdated non-parole period of one year, making him first eligible for release on April 7th, 2025.
The younger Obeid’s case highlights the ongoing legal consequences for the family’s corrupt activities, with Judge Antony Townsend noting that Moses Obeid had demonstrated limited insight into his offending.
ICAC Reforms Strengthen Anti-Corruption Framework
The Obeid corruption scandals catalysed significant reforms to NSW’s integrity framework. The NSW Government recently introduced reforms requiring legislative responses to ICAC recommendations directed to the Government, strengthening accountability measures.
Additional reforms include $228.6 million in new expenditure over 10 years to ensure integrity agencies remain adequately resourced, plus amendments to require government responses to ICAC recommendations. These changes represent direct responses to the systemic issues exposed by cases like Obeid’s.
The Independent Commission Against Corruption continues investigating current matters, demonstrating the ongoing need for robust anti-corruption oversight in NSW politics.
Also Read: Former NSW MP Daryl Maguire Sentenced to 10 Months in Prison
Lasting Impact on Political Trust
Obeid was expelled from the Labor Party in May 2013 for bringing the party into disrepute, marking the definitive end of his political career. His cases have become textbook examples of how political influence can be abused for personal gain.
The corruption revelations damaged public trust in NSW Labor and contributed to the party’s electoral losses during the 2010s. Premier Chris Minns has since implemented additional integrity measures, including restrictions on political donations and enhanced grant regulations.
Obeid’s release on parole closes another chapter in this saga, but the reforms triggered by his corruption will continue shaping NSW politics for years to come. His case remains a stark reminder of why strong integrity agencies and transparency measures are essential for maintaining public trust in democratic institutions.
The former powerbroker now faces ongoing parole conditions while NSW continues strengthening its defences against political corruption through enhanced oversight and accountability measures.
