ANALYSIS



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Implicated in corrupt activity involving Eddie Obeid: Liberal MP Chris Hartcher. Photo: Sasha Woolley


From the time the first details of the Independent Commission
Against Corruption's latest investigations were announced a few weeks
ago, shudders have reverberated through the ranks of the O'Farrell
government.



The details hinted at the prospect of one of its most senior
ministers, Chris Hartcher, being implicated in corrupt activity
involving Eddie Obeid, the most notoriously corrupt figure in the
discredited former Labor government.



On Monday, counsel assisting the inquiry Geoffrey Watson landed another devastating blow to the Liberals.



Tongue firmly in cheek, Watson described the alleged
corruption surrounding Australian Water Holdings as ''an
uncharacteristic display of bipartisanship''.




''It might be said - re-adapting Shakespeare - that
corruption 'acquaints a man with strange bedfellows','' he added, with a
flourish.



Watson outlined a meeting in a Parliament House lift between
Obeid and then Labor water minister Phil Costa, who is not accused of
any wrongdoing.



Costa has told the ICAC Obeid suggested he needed to ''sack
that bitch'' - a reference to then Sydney Water chief Kerry Schott, who
was cold on a proposed deal with AWH that would benefit the Obeid
family.



Then came the bombshell. Obeid is alleged to have told Costa
that Hartcher would make corruption allegations against Schott using
information provided by him.



An anonymous complaint was later made to the ICAC - which the
commission says is unfounded. ''The source of the complaint is very
interesting,'' Watson said. ''This is where misconduct makes its leap
across party lines''.



There Watson left us hanging, with a promise of a full explanation at a later date.



But a year out from an election, the danger for the O'Farrell
government is that this type of statement confirms for the public there
is little difference between it and the Labor government violently
ejected from office three years ago.



Worse, the Labor accused - Obeid, Kelly and Tripodi - are
long gone from Parliament whereas Hartcher is hanging on to his seat and
may do so until the ICAC hands down a final report - which could arrive
shortly before next year's poll.



The ICAC has made it very clear Premier Barry O'Farrell is in
the clear, despite his close relationship to another of the accused,
Liberal identity and AWH chief executive Nick Di Girolamo.



But just how much damage may be done to his government is only now starting to become apparent.