The federal court matter between the corruption watchdog and the family of corrupt former NSW Labor figure Eddie Obeid has been mentioned in court for the first time.
The Independent Commission Against Corruption (ICAC) is attempting to recoup $1.5m in legal fees from the Obeid family, alleging they refused to pay costs ordered by the NSW Supreme Court for their failed legal action.
A sequestration action was filed by ICAC in the Federal Court of Australia in January against Eddie Obeid Sr, Moses Obeid, Paul Obeid and Eddie Obeid Jr.
If the order is granted by the court, the Obeids would become bankrupt.
The matter was briefly mentioned by registrar Claire Gitsham in the bankruptcy list on Tuesday.
No appearances by ICAC or the Obeids were made, with Ms Gitsham adjourning the matter until May 10.
The ICAC petition states the Obeids owe the watchdog $1,642,911.86 for its legal costs, which were ordered to be paid on November 2020 in the NSW Supreme Court.
“If you or your lawyer do not attend, then the court may deal with the petition in your absence and make a sequestration order making you bankrupt,” the petition said.
The family launched legal action against ICAC and former commissioner David Ipp QC, Sydney barrister Geoffrey Watson SC and two ICAC officers in 2015.
The Obeids claimed they were unfairly targeted by ICAC, which investigated a $30m coal deal that led to criminal charges against Mr Obeid Sr and his son Moses.
The former Labor MP and Moses are serving time in prison at Cooma Correctional Centre for their roles in a conspiracy alongside former NSW minister Ian Macdonald, who is also imprisoned.
The misconduct benefited the Obeid family.
Supreme Court Justice David Hammerschlag dismissed the Obeids’ case in September 2016, claiming it was “eccentric” and the family was ordered to pay the legal bxjmtzywill for all parties that came to more than $5m.
