A Sydney corruption inquiry has heard that former New South Wales roads minister Eric Roozendaal picked up a $44,000 car without paying any money or being asked for registration papers.

An Independent Commission Against Corruption (ICAC) hearing began today in relation to allegations against former Labor ministers Eddie Obeid and Ian MacDonald, as well as Mr Roozendaal, who is still a MP.

The inquiry heard Mr Roozendaal was roads minister when his wife Amanda crashed his Honda CRV near the Broadway Shopping Centre in 2007.

Counsel assisting the commissioner Geoffrey Watson said the circumstances under which the car was replaced could be innocent, but are mostly "incompatible with honest intent".

He said in a bizarre course of events, Mr Roozendaal only paid $34,000 for a new car which cost $44,800 in June 2007.

It was registered in the name of 'Ms Nata Re' and transferred to Mrs Roozendaal on July 26 of that year.

Mr Watson said that "might be interpreted as a good deal", but might also be interpreted as Mr Roozendaal receiving a $10,000 "inappropriate financial benefit".

Mr Watson said the car was arranged for Mr Roozendaal by Mr Obeid and the inquiry will hear that it was in exchange for favours to Mr Obeid's family.

Mr Watson said Mr Obeid and his family are "very active business people".

He noted that when Mr Roozendaal picked up the new car, he drove off without paying any money or signing any paperwork.

"The fact that Mr Roozendaal would not ask for rego papers is especially difficult to fathom – he was, after all, the minister for roads," Mr Watson said.

"Gifts and favours usually require reciprocation.

"The multiple handling of the ownership of the car is only consistent with a deliberate attempt to disguise aspects of the deal."

Day one of the inquiry adjourned early after Mr Watson said he "ran out of evidence".

Corruption

ICAC Commissioner David Ipp told the inquiry that while there have been media reports of Mr Roozendaal being linked to corruption allegations involving mining licences, ICAC is not investigating him for that.

Next year the inquiry will extend to allegations about Mr Obeid and Mr MacDonald and coal exploration licences, including how four Hunter Valley mining licences were issued.

It involves the purchase of land in the Bylong Valley by Mr Obeid's family before Mr MacDonald granted coal exploration rights when he was mining minister.

The Commissioner says he is determined to avoid dragging out the inquiry.

"This inquiry has the capacity to drag on for a very long time," he said.

Former premiers Kristina Keneally, Morris Iemma and Nathan Rees will all give evidence.