Australian ministers dragged into graft probe

Source:AFP Published: 2013-2-6 22:28:01

Two senior Australian ministers have been dragged into a snowballing ruling party corruption scandal, admitting accepting hospitality from a former powerbroker at the center of an explosive inquiry.

Environment Minister Tony Burke and Senate leader Stephen Conroy both stayed at a ski lodge owned by Eddie Obeid, who is the focus of an Independent Commission Against Corruption probe over an alleged "criminal conspiracy."

Obeid, a former powerful kingpin in the New South Wales state Labor party, which holds power at the center, is accused of using highly confidential information about a prospective coal license to enrich himself and his family by tens of millions of dollars.

He has been giving evidence this week in a hearing that has gripped Sydney, with people queuing for hours to get a glimpse of proceedings that have seen him accused of effecting a massive "fraud on the people of New South Wales."

Obeid denies the allegations that he conspired with the state's former resources minister to obtain insider information.

But in a new twist revealed Burke accepted his hospitality when he was in opposition.

"We are generous people and we like to share our generosity with our friends," Obeid told the hearing late Tuesday, fingering Burke and several state politicians, including current NSW Labor leader John Robertson.

Conroy admitted he too had stayed there once when in opposition.

It is another major headache for Prime Minister Julia Gillard, whose Labor party is badly lagging in opinion polls after she last week announced an election for September 14.

AFP


Posted in: Asia-Pacific

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