Crown Prosecutor Peter Neil, SC, said the prosecution would push for a jail sentence. Obeid, who showed no emotion in the dock but was embraced by his daughters at the back of the historic Darlinghurst Supreme Court, will remain on bail until his sentencing. Eddie Obeid leaves court after being found guilty. Credit:Ben Rushton The ICAC inquiry which led to the conviction was prompted by a Walkley award-winning Herald investigation in 2012 by Linton Besser and Kate McClymont. The pair revealed the Obeid family secretly owned prime harbourside cafes and that Mr Obeid used his influence as MP to gain advantages for his family. Obeid was found to have lobbied Steve Dunn, then deputy chief executive of the state maritime authority, to benefit retail tenants at Circular Quay "under the cloak" of acting for arm's length constituents.

In fact, he was acting in his private interests. His family had a secret interest in two cafes on wharves four and five at Circular Quay and were among a group of tenants seeking to have their leases renewed without competing in a public tender. Eddie Obeid is facing jail time following the guilty verdict. Credit:Ben Rushton The Supreme Court heard Obeid "duped" Mr Dunn into assuming he was acting in the public interest while he was advancing his family's financial interests. The Crown alleged Obeid himself received envelopes of cash from the takings of the cafes during and after the time he was urging Mr Dunn to speak to a commercial negotiator representing a group of disgruntled tenants at Circular Quay. It pointed to a direct financial interest in the cafes that the Crown contended motivated him to secure lucrative concessions for the businesses.

Shortly after his representations to Mr Dunn, a draft commercial leasing policy in the state was altered to allow Circular Quay leases to be renewed in the first instance without a tender. This gave the tenants, including a company linked to the Obeid family, a valuable asset that could be sold. Mr Dunn, who was not accused of wrongdoing, gave evidence he was not influenced by Mr Obeid and did not direct that the draft policy be changed although he believed it was a good outcome. The court heard the two men had a good working relationship and had met when Mr Obeid was fisheries minister and Mr Dunn the director-general of the fisheries department. There is no set maximum jail term in NSW for the criminal offence of misconduct in public office, which means it is technically life in prison.

However, a maximum term of between 10 and 14 years is likely. Justice Robert Beech-Jones continued Obeid's bail and will sentence him at a later date. The parties will make submissions on sentence on August 12. Misconduct in public office is an offence rarely prosecuted in NSW, although the ICAC has recommended misconduct charges be considered against a range of MPs in the past. It means Justice Beech-Jones will have few precedents to guide him in making his decision on sentence. In 2006, Parliament moved to allow MPs convicted of serious crimes to be stripped of their pensions after former Labor minister Milton Orkopoulos was convicted of child sex offences. A serious crime is an offence punishable by least five years' jail or an infamous crime. Parliament authorities could not confirm if the 2006 changes would apply to Mr Obeid and other politicians convicted after leaving office. Pillar, the company that administers MPs' superannuation scheme was not contactable.

But the company has previously questioned whether MPs convicted after leaving office lose these entitlements, prompting calls for new legislation expressly targeting MPs who have left parliament. "Like the rest of NSW I am appalled by what transpired," Premier Mike Baird said. "I have sought urgent advice on what action may be taken, noting there is recent parliamentary precedent. "The justice system has operated and the verdict speaks for itself. I have zero tolerance for corruption in NSW, and zero sympathy for those who are found guilty of it." In a nod to recent funding cuts at the ICAC, NSW Opposition Leader Luke Foley said: "If it wasn't for the ICAC Eddie Obeid's case wouldn't have made it to court. "That's why it's so important to have a strong and well-funded ICAC," he said.

with James Robertson