Case against Obeid and McDonald shows more needed to prevent corruption and abuse of power says NGO coalition

The conviction against former ALP powerbrokers, Eddie Obeid and Ian McDonald shows more is needed to prevent corruption and abuse of power, says NGO coalition Publish What You Pay Austraila.

The two, and Eddie Obeid’s son, Moses were convicted of conspiring to commit misconduct in public office over a 2009 mining exploration licence that led to a $30m windfall for the Obeids. The awarding of mining licenses has been identified as a key corruption risk by Transparency International Australia and there is international evidence that shows politically exposed people are involved in large numbers of corruption cases in the mining sector. Unlike 51 other resource rich nations, including the UK, PNG, Germany and Indonesia, Australia is yet to become an Extractive Industries Transparency Initiative (EITI) country which is the gold standard of domestic resource governance.

Clancy Moore, National Director of Publish What You Pay Australia made the following comments:

"The case against former ALP minister, Obeid and McDonald shows the impact that powerful people can have on corruption in the mining sector.”

“Australia must have stronger disclosures of extractive revenues, licenses and project ownership. Like sunlight, transparency is the best prevention against corruption.”

“The government has committed to Australia to the highest standards of transparency and good governance for mining, gas and oil sectors known as the Extractive Industries Transparency Initiative (EITI). To date, this has been another empty promise by the government and leave the door wide open for more corruption which impacts communities, the industry and governments”.

ENDS