Yesterday, Australia’s independent corruption watchdog found that former Labor party figures Eddie Obeid and Ian Macdonald had acted corruptly. Obeid, a former New South Wales Labor party powerbroker, and Macdonald, the former state energy minister, are now being referred to prosecutors to consider criminal charges. The men, together with several others, had misused inside knowledge from Macdonald’s position in office to make tens of millions of dollars by buying land before it was rezoned for coal mining.
The case has naturally received a lot of media coverage, not only due to the raw facts of the abuse of power, but also because of the show the Obeids put on along the way: son Moses Obeid claiming it could have been Jesus Christ who pencilled confidential zoning information onto a map; Eddie Obeid’s diary giving an entertaining glimpse into the enema schedules of the rich and powerful; and Mr Obeid’s ever-righteous harrassment of journalists: “[Kate] McClymont has been mixing with scum for so long that she no longer knows who is good and who is bad, what is real and what is made up.” The involvement of a prostitute called Tiffanie came as less a surprise than an inevitable trope. Many of us enjoyed sharing the jubilation (schadenfreude?) of the Sydney Morning Herald journalists yesterday as they wrote and tweeted about the ICAC findings that vindicated their work.
One important aspect of the case, though, hasn’t had much attention. It’s the fact that these politicians weren’t just abusing a position of power, but they were acting corruptly while having oversight of of vast coal reserves – fossil fuel resources whose future use will have huge global environmental significance. In fact, the Economic Demonstrated Reserves of black coal in NSW alone (those we currently know about and deem profitable to extract) make up over 5% of the total global carbon budget.*