NSW government looks at stripping former Labor MP’s pension after he was found guilty of wilful misconduct in public office

This article is more than 4 years old

This article is more than 4 years old

The former New South Wales MP Eddie Obeid may lose his parliamentary pension of about $120,000 a year after he was found guilty of wilful misconduct in public office.

Obeid faces jail after being found to have committed a crime when he lobbied the then Maritime Authority’s deputy chief executive, Steve Dunn, in 2007 about a long-running dispute over the renewal of leases at Circular Quay.

The NSW government is looking at the possibility of stripping Obeid’s pension for almost 20 years in parliament.

The federal opposition leader, Bill Shorten, and former NSW Labor premiers Morris Iemma and Kristina Keneally slammed their former ally and powerbroker.

Eddie Obeid found guilty of misconduct in public office Read more

Shorten called him a disgrace, Iemma said he misused his privilege, and Keneally said the conviction was a good outcome for the state.

Former parliamentarians convicted of crimes or serious offences warranting at least five years’ imprisonment can have their pension invalidated.

“Like the rest of NSW I am appalled by what has transpired,” said the premier, Mike Baird. “I have sought urgent advice on what action may be taken, noting there is recent parliamentary precedent.”

He was referring to legislation passed in November 2006 preventing the former Aboriginal affairs minister Milton Orkopoulos from accessing his pension while charged with child sex offences.

Orkopoulos was later convicted and sentenced to at least nine years in prison.

Obeid, 72, once boasted he had a “1%” chance of facing charges, despite being branded corrupt after an Independent Commission Against Corruption inquiry into the leases.

Iemma said on Wednesday that Obeid’s negative impact would linger in NSW politics and he would fully support stripping his pension.

“It’s just further example of how much this man used his privileged position, and the privileges that come with being a member of parliament, to not do good for the people of NSW,” Iemma told 2UE Radio. “It’s very clear this man was all about enriching himself.”

Iemma said the secret to Obeid’s success was his ability to maintain the support of a small number of party and union officials, as opposed to facing party members in a preselection. The party had since made rule changes preventing the rise of another Obeid, he said.

Shorten was blunt. “He is a disgrace, there is no place for him in politics,” the federal Labor leader told the Nine Network.

During the three-week trial the court was told Obeid had an interest in a company called Circular Quay Restaurants, which owned two businesses on the Sydney wharves. But he failed to disclose this when he rang Dunn and asked him to meet a negotiator acting on behalf of leaseholders.