'Corruption consumes democracies': Obeid sentenced to five years jail

Disgraced former NSW Minister Eddie Obeid has been sentenced to a maximum five years in prison for wilful misconduct in public office, effective immediately.

He will serve a minimum of three years.

The 73-year-old, who has a "constellation" of medical issues and suffered a stroke in August, faced sentencing in the NSW Supreme Court on Thursday.

In sentencing Justice Robert Beech-Jones said he was satisfied Obeid had breached the public's trust by using his position of power as a parliamentarian.

Justice Beech-Jones said "corruption consumes democracies" and had "Mr Obeid had not wilfully abused his position of power as a parliamentarian" his career would have been a testament to "hard work and public service".

"Instead his time in public life has produced a very different legacy," the judge said, adding that "no penalty other than imprisonment is appropriate".

In June, a jury found him guilty of lobbying a senior public servant about lucrative Circular Quay leases without revealing his family's stake in the outlets.

Disgraced Labor powerbroker Eddie Obeid once boasted there was less than a one per cent chance he would be convicted. Photo: AAP
Disgraced Labor powerbroker Eddie Obeid once boasted there was less than a one per cent chance he would be convicted. Photo: AAP

At his sentence hearing earlier in December, the Crown submitted that full-time custody was the only appropriate penalty.

Peter Neil SC, for the Crown, acknowledged Obeid had a "constellation" of medical issues including suffering a stroke in August.


"Fortunately he came out of it as well as could be expected," he said, before referring to a report by prison health authorities.

"The type of conditions that afflict the offender and the fact of his age are by no means novel or new to them."

Mr Neil said "we wish him well", adding "he is far from being at death's door".

But his lawyer argued against a prison term, saying other options such as a suspended term were appropriate, contending that the offending was at the bottom end of the scale of objective seriousness.

Former NSW state Labor minister Eddie Obeid arrives at the NSW Supreme Court in Sydney, Tuesday, June 21. Photo: AAP
Former NSW state Labor minister Eddie Obeid arrives at the NSW Supreme Court in Sydney, Tuesday, June 21. Photo: AAP

Brad Hughes SC, for Obeid, said a term of imprisonment was not called for and tendered 55 character references, one describing Obeid as a "champion of the underprivileged".

"He has given 20 years of service in Parliament," Mr Hughes said.

In June the court found Obeid had acted in his own personal interests by using his role as an MP to boost the value of properties secretly owned by his family.

The Obeid family held interests in two Circular Quay cafes, a fact that was not disclosed. Obeid used his influence to push for changes to laws which increased their value by removing the need to tender for lease renewals.