CORRUPTION findings against mining mogul Travers Duncan and other businessmen involved in a mining venture over the Obeid family's farm are set to be overturned, in the first of a series of findings likely to be toppled by a devastating High Court decision on the corruption watchdog's powers.
The Independent Commission Against Corruption confirmed on Thursday that it will agree to court orders declaring the findings invalid, following the High Court ruling in its battle with Crown prosecutor Margaret Cunneen, SC.
Mr Duncan and his associates – former Krispy Kreme Australia chief executive John McGuigan, businessman John Atkinson and Sydney investment banker Richard Poole – were found to have acted corruptly by concealing from NSW officials the involvement of the Obeid family in a coal tenement.
But the commission said that on the basis of legal advice, and in light of the Cunneen ruling, "it has no arguable basis or option to resist" court orders overturning the findings. It is likely the commission will also agree to pay the men's legal costs.
The ICAC has urged Premier Mike Baird to pass retrospective legislation to bolster its powers in the wake of the four-to-one majority decision, which imperils recent high-profile investigations into Obeid-linked company Australian Water Holdings and Liberal Party donations.
It is also likely to result in past convictions flowing from some of its inquiries being set aside.
At the heart of the Cunneen case was a battle over one of the definitions of "corrupt conduct" in the ICAC Act, which set the limits of the commission's jurisdiction.
The commission has long operated on the basis it could investigate cases in which private citizens allegedly misled public servants who themselves did not act corruptly. The findings against Mr Duncan and his associates fell into this category.
But the High Court majority took a different view, saying the "probity" of the public official must also be adversely affected.
The ruling is likely to affect corruption findings in other high-profile inquiries, including those made against former union boss John Maitland and three business associates in the commission's inquiry into a lucrative Doyles Creek coal licence.
The men were found to have acted corruptly by making, or agreeing to Mr Maitland making, "false or misleading statements" about their proposal to the Department of Primary Industries.
Labor Opposition Leader Luke Foley said: "I said last week that the prospect of numerous businessmen found by ICAC to have been engaged in corrupt conduct now rushing to the Supreme Court to have those findings quashed fills me with disgust.
"This development reaffirms the need for the Parliament to consider legislation to strengthen ICAC's powers to fight corruption.
"I am willing to work co-operatively with Mr Baird to achieve this."
Greens MP Jamie Parker, the party's anti-corruption spokesman, said the ICAC's capitulation was an "unhappy consequence" of the Cunneen decision.
"This is a question of leadership for the premier. He must decide whether NSW is open for corruption or not," he said.
"The Greens reiterate our call for the government to commit to amending the ICAC Act to ensure NSW has an effective corruption fighting organisation."
A spokesman for Mr Baird said: "The Premier will meet with Commissioner [Megan] Latham next week, as well as taking independent advice. Cabinet will consider options in due course."
Former Labor powerbroker Eddie Obeid, his middle son Moses, and Mr Obeid's ministerial ally Ian Macdonald were found to have acted corruptly by agreeing in 2008 to create a coal tenement over the Obeid family's property at Mount Penny in the Bylong Valley.
Those findings will not be affected by the Cunneen ruling because they were made under another definition of corruption in the ICAC Act.
Mr Duncan and his associates were investors in Cascade Coal, which won a lucrative exploration licence over the Obeids' property.
The men launched NSW Court of Appeal proceedings to have the findings against them overturned, after losing their case in the Supreme Court.
Another associate, former RAMS Home Loans founder John Kinghorn, succeeded in having the corruption finding against him overturned in the Supreme Court.
The ICAC has now consented to dropping its own appeal against that ruling as a result of the Cunneen decision.
