Obeid v The King; Obeid v The King; Macdonald v The King [2026] HCA 1 (4 February 2026)
Last Updated: 4 February 2026
HIGH COURT OF AUSTRALIA
GAGELER CJ,
GORDON,
EDELMAN, STEWARD, GLEESON, JAGOT AND BEECH‑JONES JJ
Matter No S88/2025
EDWARD MOSES OBEID APPELLANT
AND
THE KING RESPONDENT
Matter No S89/2025
MOSES EDWARD OBEID APPELLANT
AND
THE KING RESPONDENT
Matter No S93/2025
IAN MICHAEL MACDONALD APPELLANT
AND
THE KING RESPONDENT
Obeid v The King
Obeid v The King
Macdonald v The King
[2026] HCA 1
Date of Hearing: 6 November 2025
Date of Judgment: 4 February 2026
S88/2025, S89/2025
& S93/2025
ORDER
In each matter:
Appeal dismissed.
On appeal from the Supreme Court of New South Wales
Representation
P D Lange SC with A Chhabra for the appellant in S88/2025 (instructed by
Michael Bowe Solicitors)
B W Walker SC with M S Kalyk for the appellant in S89/2025 (instructed by
Murphy's Lawyers Inc)
C Parkin with J J Lang for the appellant in S93/2025 (instructed by HWL
Ebsworth)
J T Gleeson SC with E R Nicholson SC, C J Tran and N A Wootton for the
respondent in each appeal (instructed by Director of Public
Prosecutions
(NSW))
Notice: This copy of the Court's Reasons for Judgment is subject to formal
revision prior to publication in the Commonwealth Law
Reports.
CATCHWORDS
Obeid v The King
Obeid v The King
Macdonald v The King
Criminal law – Conspiracy – Common law offence of conspiracy to
commit misconduct in public office – Where accused
charged on indictment
with single count of conspiring together that one of them would wilfully commit
misconduct in public office
– Where prosecution did not allege agreement
to do particular acts that amounted to misconduct in public office – Where
prosecution case was that agreement to undertake acts fell within cumulative
elements of charge – Whether prosecution put case
at trial capable at law
of amounting to conspiracy to commit misconduct in public office.
Words and phrases – "but for", "conspiracy", "conspiracy to commit
misconduct in public office", "conspirator", "conspiratorial
agreement",
"elements of conspiracy", "elements of misconduct in public office", "improper
purpose", "misconduct", "misconduct in
public office", "overt acts", "predicate
offence", "public official", "serious and meriting criminal punishment",
"wilfully misconduct".
Mining Act 1992 (NSW), Pt 5.
- GAGELER CJ,
GORDON, EDELMAN, STEWARD, GLEESON, JAGOT AND BEECH-JONES JJ. The
appellants, Edward Moses Obeid, Moses Edward Obeid,
and Ian Michael Macdonald,
were charged on indictment with a single count of conspiring together that one
of them, Mr Macdonald,
would wilfully misconduct himself, without
reasonable cause or justification, in public office, namely as the Minister
for Mineral
Resources in the Executive Government of the State of New South
Wales, in connection with the granting of an exploration licence
("EL") at Mount
Penny in New South Wales. A trial proceeded on that indictment in
the Supreme Court of New South Wales before Fullerton
J sitting without a
jury. The trial judge delivered her verdict and reasons, finding each of
the appellants guilty.[1]
Subsequently, her Honour sentenced each of the appellants to a term of
imprisonment.[2] Each appellant
appealed his conviction in the Court of Criminal Appeal of the Supreme Court of
New South Wales, which dismissed the
appeals.[3]
- In
this Court, each appellant was given leave to raise a single ground of appeal
– whether the Crown put a case at trial capable
at law of amounting to
a conspiracy to commit misconduct in public office where the Crown did not
allege an agreement for Mr Macdonald
to do a particular act or particular
acts that amounted to misconduct in public office. The ground of appeal did not
raise any issue
about what the Crown must plead in an indictment and what can be
left to particulars.[4] The
appellants' complaint was that the case that the Crown put at trial was
incapable at law of amounting to a conspiracy to commit
misconduct in public
office.
- For
the reasons that follow, each appeal must be dismissed. The agreement alleged by
the Crown in its indictment, as particularised
during the trial, was a complete
offence of conspiracy to commit misconduct in public office. The alleged
agreement contemplated
acts to be undertaken by Mr Macdonald that
necessarily satisfied the elements of the predicate offence, albeit that it was
not known
and could not be known at the time the agreement was made what
"particular acts" Mr Macdonald would undertake to bring about the
objects
of the agreement.
Background
Brief factual
overview[5]
- Two
material facts founded the prosecution of the appellants. First, on
27 September 2007, Locaway Pty Ltd ("Locaway"), a company
associated with
the Obeid family, entered into a contract to purchase "Cherrydale Park", a
property to the west of Mount Penny at
Bylong, north of the Hunter Valley.
Locaway was a trustee of the Moona Plains Family Trust, the beneficiaries of
which were members
of the Obeid family. The directors of Locaway were sons of
Mr Edward Obeid. Settlement occurred on 15 November 2007.
- Second,
the Department of Mineral Resources had identified a coal seam which followed
the general direction of the Bylong Valley.
The eastern section of the coal seam
lay under three properties, the most southerly of which was Cherrydale Park. An
area which included
the three properties was the subject of an EL granted under
the Mining Act 1992 (NSW) known as EL6676, which was held by
the Department of Primary Industries ("the DPI"). In late 2007, there was
no intention on
the part of the DPI to release the area for private exploration
because the extent and value of the coal seam had not been assessed.
In broad
terms, the indictment was directed to steps taken by Mr Macdonald to
release the area (including Cherrydale Park) for private
exploration, with
potential benefits for the Obeid family through their ownership of
Cherrydale Park.
Indictment
- The
indictment charged that:
"Between 1 September 2007 and about 31 January 2009 at Sydney and elsewhere in
the State of New South Wales, each of the [appellants]
conspired together that
Mr Macdonald would, in the course of or connected to his public office as
Minister for Mineral Resources
in the Executive Government of the State of New
South Wales, wilfully misconduct himself, without reasonable cause or
justification,
by doing acts:
(a) in connection with the granting of an exploration licence at Mount Penny in
the State of New South Wales; and
(b) concerning the interests of Edward Moses Obeid and/or Moses Edward Obeid
and/or their family members and/or associates; and
(c) knowingly in breach of:
(i) his duties and obligations of impartiality as a Minister in
the Executive Government of the State of New South Wales; and/or
(ii) his duties and obligations of confidentiality as a Minister in the
Executive Government of the State of New South Wales,
such misconduct being serious and meriting criminal punishment having regard to
the responsibilities of the Office Mr Macdonald occupied
as Minister for
Mineral Resources and his responsibilities as the holder of that Office, the
importance of the public objects which
the Office and Officeholder serve and the
nature and extent of the departure from those objects."
Particulars
- At
trial, the Crown did not provide a statement of the acts which it alleged
the appellants agreed that Mr Macdonald would undertake.
The Crown
case was that there was an agreement to undertake acts falling within the
cumulative elements of the charge. To that end,
the Crown provided particulars,
which were revised during the trial, of the acts said to have been undertaken by
Mr Macdonald pursuant
to, and in furtherance of, the agreement he had
reached with Mr Edward Obeid and Mr Moses Obeid. That is, the Crown case at
trial
was that the unlawful agreement was to be inferred from the subsequent
conduct of
Mr Macdonald.[6]
- The
Crown in closing ultimately identified eight acts of misconduct, being overt
acts alleged to have been committed by Mr Macdonald
in furtherance of
the conspiracy, which were particularised as follows:
"FIRST MISCONDUCT: On or about 9 May 2008, Mr Macdonald sought information,
via his chief of staff Mr Jamie Gibson, from the Department
of Primary
Industries (DPI) as to the volume of coal reserves in the area of Mount Penny
(in the Bylong Valley, New South Wales)
(Mt Penny). He did so in breach of his
duty of impartiality as he knew the Obeid family owned property in this
location.
SECOND MISCONDUCT: On or about 14 May 2008, Mr Macdonald sought further
information, via his chief of staff Mr Jamie Gibson, from
the [DPI] about
coal reserves in the area of Mt Penny including whether it was possible for the
DPI to open its holdings for tender.
He did so in breach of his duty of
impartiality as he knew the Obeid family owned property in this location.
...[[7]]
FOURTH MISCONDUCT: In the period 9 May to 9 July 2008, Mr Macdonald caused
Mr Edward Obeid, Mr Moses Obeid or another member of the
Obeid family, to
be provided with a copy of:
(i) a map titled 'Mt Penny' area, prepared by Ms Leslie Wiles dated 9 May
2008 (Wiles Map 1); and
(ii) a map titled 'North Bylong – Mt Penny Area' prepared by Ms Leslie
Wiles dated 30 May 2008 (Wiles Map 2).
He did so in breach of his duty of impartiality as he knew the Obeid family
owned property in this location, and in breach of his
duty of confidentiality as
both maps were
confidential.[[8]]
FIFTH MISCONDUCT: Between 4 and 16 June 2008, Mr Macdonald directed that
the 'potential open cut area' depicted in Wiles Map 2 be
reduced to a smaller
area comprising the eastern portion only. He did so in breach of his duty of
impartiality as he knew the Obeid
family owned property in this location.
SIXTH MISCONDUCT: Between 17 June and 23 July 2008, Macdonald communicated to
Edward Obeid and/or Moses Obeid that the [expression
of interest ('EOI')]
process for Mt Penny was to commence at the end of July 2008. He did so in
breach of his duty of impartiality,
as he knew the Obeid family owned
property in a location proposed to be included in the EOI (ie Mt Penny), and in
breach of his duty
of confidentiality as this information was confidential.
SEVENTH MISCONDUCT: On or after 7 July 2008, Macdonald caused Edward Obeid,
Moses Obeid or another member of the Obeid family, to
be provided with:
(i) a document titled 'Company EOI 2 July 2008' containing a list of companies
proposed to be invited to participate in the EOI;
or
(ii) information as to the companies on that list.
He did so in breach of his duty of impartiality, as he knew the Obeid family
owned property in a location proposed to be included
in the EOI
(ie Mt Penny), and in breach of his duty of confidentiality as the
list was confidential.
EIGHTH MISCONDUCT: On or after 23 July 2008, Macdonald caused Edward Obeid,
Moses Obeid or another member of the Obeid family, to
be provided with:
(i) the page [of a memorandum titled 'Coal allocation' dated 5 August 2008] with
the heading 'MEDIUM COAL ALLOCATION AREAS'; and
(ii) a map titled 'Proposed Coal Release Areas for EOIs' prepared by Fred
Schiavo dated 21 July 2008 (Schiavo Map 3).
He did so in breach of his duty of impartiality, as he knew the Obeid family
owned property in a location proposed to be included
in the EOI
(ie Mt Penny), and in breach of his duty of confidentiality, as
the information in this document was confidential.
NINTH MISCONDUCT: Between 27 November 2008 and 13 January 2009, Macdonald
communicated to Edward Obeid and/or Moses Obeid that the
EOI process was to be
(or was) reopened to allow the 'White Group' of companies (including Cascade
Coal) to apply. He did so in breach
of his duty of impartiality, as he knew the
Obeid family owned property in a location included in the EOI (ie Mt
Penny), and in breach
of his duty of confidentiality as this information was
confidential."[9]
The Crown alleged that Mr Macdonald would not have acted as alleged in
those eight acts of misconduct "but for the improper purpose
of advancing the
interests of" Mr Edward Obeid, Mr Moses Obeid "and/or their family
members and/or associates".
- In
relation to other aspects of the indictment, the Crown provided further
particulars. First, the nature of the unlawful agreement
the subject of the
indictment was said to be that Mr Macdonald would misconduct himself in
relation to the granting of a coal EL
at Mount Penny "so as to favour
the interests of" Mr Edward Obeid, Mr Moses Obeid "and/or other family
members and/or associates".
The meaning of "concerning the interests of" in the
indictment was said not to require particularisation beyond the ordinary meaning
of the words. The Crown case was that Mr Macdonald "would misconduct
himself with the improper purpose of advancing the interests
(primarily
financial) of Edward and Moses Obeid and/or their family members and/or
associates".
- As
to the final portion of the indictment, which referred to the fifth element of
the offence of misconduct in public
office,[10] the Crown
relevantly provided the following particulars:
"(a) the responsibilities of the Office and the Officeholder refers to
the responsibilities of Ian Macdonald as Minister for Mineral Resources,
being a Minister in the Executive Government of
the State of New South
Wales. Those responsibilities include duties of impartiality and confidentiality
as stated in the iterations
of the Ministerial Code of Conduct and
Ministerial Handbook;
(b) the meaning of the importance of the public objects which they serve
does not require particularisation beyond the ordinary meaning of the words and
will be a matter for the jury. The Crown relies upon
the opening paragraphs ...
of the iterations of the Ministerial Code of Conduct;
(c) the meaning of the nature and extent of the departure from those
objects does not require particularisation beyond the ordinary meaning of
the words and will be a matter for the jury. The Crown relies upon
each act
of willful misconduct set out at paragraph 3
above;[[11]] and
(d) as to the allegation that the alleged misconduct was serious and meriting
criminal punishment, the Crown relies on the whole of the evidence
in the Crown case." (emphasis in original)
Crown: Elements of offence
- In
its closing submissions, the Crown provided to the trial judge the final form of
a document headed "Crown: Elements of offence".
The document stated:
"(1) Ian Macdonald and Edward Obeid and Moses Obeid intentionally entered
into an agreement that Ian Macdonald would commit misconduct in public office.
That is, each of the accused knew or intended that Mr Macdonald
would:
(a) as a public official;
- a Minister of
the Executive Government of the State of New South Wales is a public
official
(b) in the course of, or connected to, his public office;
(c) commit misconduct by:
(i) intentionally doing acts in connection with the granting of an [EL] at Mount
Penny NSW;
(ii) with the improper purpose of benefitting Edward and/or Moses Obeid
and/or their family members and/or associates;
(d) commit the misconduct set out at (c) above wilfully, that is
knowing that he was acting in breach of:
(i) his duties and obligations of impartiality as a Minister in the Executive
Government of the State of New South Wales; and/or
(ii) his duties and obligations of confidentiality as a Minister in the
Executive Government of the State of New South Wales;
(e) do so without reasonable excuse or justification.
(2) such misconduct being serious and meriting criminal punishment having regard
to the responsibilities of the Office Mr Macdonald
occupied as Minister for
Mineral Resources and his responsibilities as the holder of that Office, the
importance of the public objects
which the Office and Officeholder serve and the
nature and extent of the departure from those objects." (emphasis in original,
footnotes
omitted)
- The
footnote to element (1)(c)(ii) read:
"But for this improper purpose, Macdonald would not have done such acts.
It is not necessary for the improper purpose to be the sole purpose,
but it must
be proved that the power would not have been exercised except for the improper
purpose: Maitland and Macdonald v R [2019] NSWCCA 32 at [84]." (emphasis
in original)
- There
is no doubt that the Crown accepted that it had to prove the "but for" element.
The Crown sought for the trial judge to infer
the existence of the alleged
agreement from the eight acts of misconduct, and so the relevance of the Crown
proving that Mr Macdonald
would not have engaged in the acts "but for"
the improper purpose lay in showing a causal connection between the acts
and the alleged
agreement. Further, the trial judge held that the "but for"
element needed to be satisfied by the Crown proving that each of the
appellants
knew, appreciated and intended that Mr Macdonald would not have agreed to
act in connection with the granting of an EL
at Mount Penny favouring the
Obeids' private interests "but for" that improper or illegitimate purpose.
Accordingly, it is unnecessary
to resolve the question of whether the "but for"
element derived from Maitland v The
Queen[12] truly
constitutes an element of the offence of misconduct in public office, or simply
describes a particular circumstance in which
some types of conduct by a public
officer amount to a breach of their duty. To the extent that it is an "element"
in respect of the
acts described as the object of the agreement, that element
was incorporated into the allegations that Mr Macdonald would "wilfully
misconduct" himself in breach of his duties and obligations of impartiality and
confidentiality, and the element was proved by the
Crown.[13]
Elements
of misconduct in public office and conspiracy
Misconduct in public office
- The
predicate offence of the conspiracy, namely misconduct in public office, is a
common law indictable misdemeanour of long
lineage.[14] There was no
dispute that the elements of misconduct in public office were those stated by
Sir Anthony Mason when sitting as a non‑permanent
judge of the Hong
Kong Court of Final Appeal in Sin Kam Wah v
HKSAR,[15] as developed
by intermediate appellate courts in
Australia,[16] namely, that
an offence is committed where (1) a public official; (2) in the course
of or connected to their public office; (3) wilfully
misconducts
themselves; by act or omission, for example, by wilfully neglecting or failing
to perform their duty; (4) without reasonable
cause or justification; and (5)
where such misconduct is serious and meriting
criminal punishment having regard to the responsibilities of the office and the
officeholder,
the importance of the public objects which they serve and the
nature and extent of the departure from those objects.
- The
predicate offence – misconduct in public office – defies precise
definition because of the range of misconduct by
officials which the offence is
designed to cover.[17] For
behaviour to qualify as relevant misconduct it may, but need not, involve a
contravention of a
statute.[18] And as the Court
in HKSAR v Hui Rafael Junior recognised, not every breach of the law by a
person when they are a public official is in the course of or in relation to the
office
held.[19] The breach
of the law "must, however, have the necessary link to official powers, duties or
responsibilities".[20] As
Professor Finn described
it:[21] "[t]he kernel of the
offence is that an officer, having been entrusted with powers and duties for the
public benefit, has in some
way abused them, or has abused his official
position". In sum, the "misconduct must be incompatible with the proper
discharge of
the responsibilities of the office so as to amount to a breach
of the confidence which the public has placed in the office, thus
giving it its
public and criminal
character".[22]
Conspiracy
- Conspiracy
consists "in the agreement of two or more to do an unlawful act, or to do a
lawful act by unlawful
means".[23] Because the crime
is one of agreement, the distinction between the mental element and the physical
act may not serve any useful
purpose.[24] The conspirators
must intend to enter into the agreement, and they must intend that the
common design should be carried
out.[25] However, it is
not necessary that the conspirators should know that what was agreed was
unlawful.[26] Any overt acts
done in pursuance of the agreement furnish the evidentiary foundation for
inferring that a criminal conspiracy was
formed, but those acts are not
themselves elements of the
offence.[27] Although it is
unusual to have a conspiracy to commit a predicate offence that can be committed
by only one of the conspirators –
namely, misconduct in public office
– there is no reason in principle why such an unlawful agreement cannot
amount to a conspiracy.[28]
The elements of conspiracy can be satisfied even where the acts are left to
one conspirator.[29]
- It
was common ground between the parties that a conspiracy is complete upon the
agreement being made,[30] and
may be complete although the precise means or methods by which the conspiracy is
to be effected are not known, nor agreed upon.
Examples of such agreements
include an agreement to "cheat and defraud divers insurance companies", or an
agreement "by divers false
pretences and subtle means and devices, to obtain
from [a person] divers large sums of money, and to cheat and defraud" that
person.[31]
- Accordingly,
so far as any alleged conspiracy to commit an unlawful act is concerned, the
identification of the scope and object
of the conspiracy by the prosecution
is constrained by three requirements. The first and second are that there must
be alleged and
proven beyond reasonable doubt: (i) an
agreement[32] (ii) to do
an act that necessarily amounts to a
crime.[33] The third
requirement is that, consistent with the adversary system of criminal justice
and the necessity to ensure an accused person
has a fair opportunity to defend
the charge, there must be provided "as high a degree of particularity concerning
[the] criminal
charge as the subject matter will
bear".[34]
Appellants'
arguments
- The
appellants raised various arguments in support of the contention that the Crown
put a case at trial that was not capable at law
of amounting to a conspiracy to
commit misconduct in public office. During the hearing, the appellants'
arguments were distilled
to two points.
- First,
counsel for Mr Moses Obeid (whose submissions were adopted by
the other appellants) submitted that for the common law offence
of
conspiracy it is obligatory that the future conduct must be the subject of the
agreement, and that conduct must amount to an offence
if carried out as
intended, so that absent specification of a particular act as the object of the
conspiracy, it was not possible
for the alleged conspirators to agree to acts
being committed which would have the requisite quality of being criminal.
- Second,
counsel for Mr Edward Obeid further submitted that the fifth element of the
offence of misconduct in public office requires
an assessment of whether the
misconduct merits criminal punishment and it was only by specification of the
alleged acts that a tribunal
of fact would be able to assess whether the nature
and extent of the alleged departure from the objects of the office were such as
to merit criminal punishment. Counsel contended that not all acts within the
scope of the indictment would necessarily satisfy the
fifth element.
- Both
arguments advanced on behalf of the appellants should be rejected.
No requirement to allege agreement to do specified acts
- The
essential flaw in both the appellants' arguments was to assert that
Mr Macdonald's agreement to favour the financial interests
of the Obeids
could not constitute an agreement that he would commit an offence because it
could not be said at the time of the agreement
how he would depart from the
objects of his office.
- There
was no dispute that, as in any charge of conspiracy, it was necessary to focus
on the character of the conspiratorial agreement
alleged by
the prosecution.[35]
There was also no dispute that the offence of conspiracy was complete at the
time of the alleged
agreement[36] and, on the
Crown case, that was said to be no later than 9 May 2008.
- The
indictment in this case was conspiracy to commit misconduct in public office.
The indictment identified the public official (Mr
Macdonald) and the public
office he held (Minister for Mineral Resources). As Minister for Mineral
Resources, Mr Macdonald was vested
with powers under the Mining Act,
including the power to grant an EL in New South
Wales.[37] There was no
dispute in this Court that, as a Minister of the Crown, Mr Macdonald was a
public official or public
officer[38] for the purposes
of establishing the elements of the predicate offence. Further, it was not in
dispute in this Court that Mr Macdonald
owed the two
particularised[39] "duties
and obligations" (namely, a duty and obligation of "impartiality" and a duty and
obligation of "confidentiality") and that
the overt acts found to have been
undertaken by Mr Macdonald for the purposes of advancing the interests of
the other appellants
or their family constituted a breach of either or both of
those duties and obligations. At least so far as the duty and obligation
of
impartiality is concerned, the duty owed by a Minister is no less strict than
that owed by a member of Parliament, namely "to serve and, in serving, to
act with fidelity and with a single‑mindedness for the welfare of the
community".[40]
- Paragraphs (a)
to (c) of the indictment set out three "descriptive
limbs"[41] of the class of
acts that it was alleged were contemplated by the appellants' conspiratorial
agreement. Those descriptive limbs were
that Mr Macdonald's acts would be:
(a) in connection with the granting of an EL at Mount Penny;
(b) concerning the interests (subsequently
particularised as primarily
financial) of Mr Edward Obeid and/or Mr Moses Obeid and/or their family members
and/or associates; and
(c) knowingly in breach of his duties and obligations of
impartiality and/or confidentiality. The particulars then specified that
Mr Macdonald would misconduct himself so as to favour the interests of
Mr Edward Obeid, Mr Moses Obeid and/or their family members
and/or
associates. The Crown described these descriptive limbs as "cumulative
conditions" satisfied by the class of acts it was agreed
would be committed in
the future. The descriptive limbs explained that the conduct contemplated
by the conspiratorial agreement involved
Mr Macdonald breaching duties he
owed as a public official, in favour of private persons.
- The
trial judge correctly characterised the conspiratorial agreement not as an
agreement that Mr Macdonald would do individual acts
but as an agreement that
Mr Macdonald would act if and when the occasion arose. An agreement of that
kind is similar to what was
described in
Hui[42] as a
"conditional conspiracy, meaning a conspiracy to show favour if and when the
occasion presented
itself",[43] although in this
case the agreement was that Mr Macdonald would (and not might) do an
act or acts in connection with the granting of the EL at Mount Penny
(to favour the financial interests of
the Obeids). The conditional aspect
of this conspiracy concerned what act(s) Mr Macdonald would do and not
whether he would do any
such acts, and whatever those acts were they would
satisfy the "cumulative conditions".
- The
appellants' submission that it is obligatory in a conspiracy to specify the
particular "act" which is the object of the conspiracy
is to be rejected. There
is no general principle that states that the object of a conspiracy must be
reduced to particular specified
acts.[44] Rather, courts have
allowed the type of conspiracy to be alleged in fairly general terms. As
observed by King CJ in R v Lacey, "[c]riminal conspirators more often
than not do not define the precise terms of their agreement. Frequently the
agreement is no
more than a generally defined common design or
plot."[45] Similarly, Wright
explained that "in general it may be said that the ordinary rules of criminal
pleading apply to conspiracy, with
exceptions arising from the fact that
the design of the conspirators need not have been executed or completely ripened
in detail,
and that the details consequently not only cannot be stated in all
cases, but may commonly be
immaterial".[46]
- Subject
to the constraints identified
above,[47] there is no reason
why the object of a conspiracy cannot be described by reference to acts
having particular characteristics. It
must be accepted, however, that the more
general that description, the more difficult it may be to prove (i) an
agreement, because
that description may be seeking to describe something so
vague that it reveals no meeting of minds; or (ii) that what was agreed
upon
necessarily amounted to a crime, because the agreement might
(realistically) embrace acts that do not amount to the predicate
offence.
Ultimately, it is a matter for the tribunal of fact whether or not, on the
evidence at trial, the charged conspiracy is
established.[48]
- In
this case, the elements of paragraphs (a), (b) and (c) in the
indictment,[49] as further
particularised[50] and
explained,[51] described acts
that necessarily amounted to the predicate offence. The offence of misconduct in
public office is flexible and designed
to cover a range of
misconduct.[52] The Crown
alleged a conspiracy whereby the parties' alleged agreement was that Mr
Macdonald would undertake acts, or take steps,
which the conspirators had not
identified and probably could not be known, but which would satisfy cumulative
elements that satisfied
the elements of the predicate offence. It would deny the
flexibility of the predicate offence to require the conspiracy charge to
achieve a degree of precision to which the subject-matter does not lend
itself.[53]
- Put
in different terms, the appellants' submissions must be rejected because the
agreement alleged by the Crown (inferred from the
overt acts) was an agreement
that Mr Macdonald would exercise his ministerial powers with respect to the
Mount Penny area in a way
that would favour the interests (primarily financial)
of the Obeids. At the time of the agreement, the conspirators had not agreed
upon and probably could not have agreed upon what powers Mr Macdonald would
exercise or how he would exercise them to favour the
interests of
the Obeids. In that sense, it was not known and could not be known at the
time the agreement was made what "particular
acts" he would undertake to
bring about the desired and intended advantage to the financial interests of the
Obeids.
- The
trial judge and the Court of Criminal Appeal each explained the lengthy and
complex process involved in applying for and obtaining
an EL under
the Mining
Act.[54] That process
involved, in abridged form, identifying a particular area to be the subject of a
competitive EOI process for allocation
of ELs or, in certain circumstances,
the granting of ELs by direct allocation. The competitive EOI process, which
took place in this
case, then involved further steps, including data
collection by the DPI about coal resources; recommendations to the Minister
(ie
Mr Macdonald) with respect to the release of particular coal resources to
tender; preparation and launch of the EOI process; evaluation
of EOI
applications by an independent committee and probity auditor; and the committee
recommending the preferred applicant to the
Minister – all before the
preferred applicant was granted consent to apply for the EL.
- This
process did not permit any person, even Mr Macdonald, to identify with
specificity, in advance, what steps might be taken, or
might need to be taken,
to favour the Obeids' financial interests. The steps it might be necessary for
Mr Macdonald to take might
depend on, for example, the progress of the EOI
process, the data collected by the DPI, and the EOI applications submitted.
The steps
that Mr Macdonald might need to take to influence the EOI process
in favour of the Obeids and their financial interests could not
be known in
advance.
- As
in Elomar v The Queen, the evidence here was clearly capable of
establishing that the conspirators shared a common
goal;[55] the common goal was
that an act or acts would be committed by Mr Macdonald, in connection with
the granting of an EL at Mount Penny,
with the improper purpose of
advancing the interests (primarily financial) of Mr Edward Obeid and
Mr Moses Obeid and/or their family
members and/or associates. It was not to
the point that the conspirators had not, or the Crown could not prove that they
had, "finalised
with
precision"[56] what the act
or acts would be. What was alleged and proved was an agreement that
Mr Macdonald would exercise his ministerial powers
with respect to
the Mount Penny area in a way that would favour the financial
interests of the Obeids where, at the time the agreement
was made, it was
not and probably could not be known what particular powers Mr Macdonald
would exercise or how he would exercise
them to do so.
- However,
even allowing for the (permissible) uncertainty of what act(s) in connection
with the granting of the EL at Mount Penny
it was agreed Mr Macdonald would
undertake, the cumulative conditions meant that any such acts would necessarily
involve him committing
misconduct by wilfully breaching his duties as a
Minister. Subject to the point considered next, it follows that
the agreement for
him to so act and to favour the Obeids' financial
interests in doing so necessarily entailed that Mr Macdonald would commit
the offence
of misconduct in public office.
Fifth element
– misconduct serious and meriting criminal punishment
- The
fifth element of the offence of misconduct in public office – that
the misconduct be serious and meriting criminal punishment
having regard to
the responsibilities of the office and the officeholder, the importance of
the public objects which they serve and
the nature and extent of the
departure from those objects – was satisfied by the misconduct alleged and
particularised by the
Crown as the subject of the conspirators' agreement.
As explained by the Court of Criminal
Appeal,[57] the question of
whether the misconduct contemplated by the conspiratorial agreement is
serious and meriting criminal punishment is
not a matter about which the
conspirators must agree. It is a matter for the tribunal of fact.
- The
indictment as framed alleged a complete agreement with the object that
Mr Macdonald would commit misconduct as the Minister for
Mineral Resources
in the future by doing acts in connection with the granting of an EL over land
at Mount Penny that he knew was
owned or controlled by his co-conspirators,
and where it was implicit that he would act that way when the opportunity
presented itself
for him to do so without the need for further agreement as to
what acts he would commit and when he should commit them. Given the
high office
and responsibilities of a government Minister, there were no realistic
circumstances in which the acts answering those
characteristics[58] would not
satisfy the fifth
element.[59] His exercising
his powers or using his office to favour the Obeids' financial interests would
be and was a serious departure from
the objects of the office he held and
the departure was such as to merit criminal punishment. In sum, and as the
trial judge found,[60] the
scope and object of the agreement comprehended by the conspiracy constituted a
gross departure from Mr Macdonald's responsibilities
as the Minister for
Mineral Resources.
Conclusion and order
- The
abuse of public trust contemplated by the conspirators was clear –
the abuse by Mr Macdonald of his official position with
respect to the
granting of an EL to the financial advantage of the Obeids and their associates.
That "kernel of the
offence"[61] was present. The
appellants did not show that the case put by the Crown was not capable of
satisfying any of the specific elements
of the predicate offence. To the
contrary, similar to
Hui,[62]
there was no doubt that the conduct of the public officer – here, the
Minister – that was the object of the conspiracy
satisfied the
elements of the predicate offence. Accordingly, the agreement that Mr
Macdonald would favour the Obeids' financial
interests by undertaking whatever
acts would be necessary in connection with the granting of an EL at Mount Penny
was a completed
offence of conspiracy to commit misconduct in public office. The
case the Crown put and proved at trial was capable at law of amounting
to a
conspiracy to commit misconduct in public office.
- Each
appeal is dismissed.
[1] R v Macdonald [No
17] (2021) 290 A Crim R 264; [2021] NSWSC 858.
[2] R v Macdonald [No 18]
[2021] NSWSC 1343; (2021) 394 ALR 125.
[3] Macdonald v The King [2023] NSWCCA 250; (2023)
112 NSWLR 402.
[4] See, eg, Kirk v Industrial
Court (NSW) [2010] HCA 1; (2010) 239 CLR 531 at 557-558 [26].
[5] The following summary is an
extract of the reasons of the Court of Criminal Appeal.
[6] R v Macdonald [No
17] [2021] NSWSC 858 at [179]- [180], [185]-[187].
[7] The revised statement of
particulars omitted what had been the third act of misconduct originally relied
upon.
[8] The trial judge found that the
fourth act of misconduct was proved, but without finding: (i) that the Crown had
proved the provision
of Wiles Map 1 as an act of misconduct in furtherance of
the conspiracy; and (ii) that the information in Wiles Map 2 was confidential
at
the time it was provided by Mr Macdonald.
[9] The trial judge found that the
first, second, fourth, seventh and eighth acts of misconduct were established:
R v Macdonald [No 17] [2021] NSWSC 858 at [1827]-[1873], [1879].
[10] See [14] below.
[11] Namely, the acts particularised
at [8] above.
[12] [2019] NSWCCA 32; (2019) 99 NSWLR 376 at 394
[84].
[13] R v Macdonald [No 17]
[2021] NSWSC 858 at [1845], [1862], [1865], [1867]‑[1868].
[14] See, eg, Case 136
Anonymous (1704) 6 Mod 96 [87 ER 853]; R v Bembridge (1783) 22 State
Trials 1 at 155-156; Finn, "Official Misconduct" (1978) 2 Criminal Law
Journal 307.
[15] [2005] HKCFA 29; (2005) 8 HKCFAR 192 at 210-211
[45]. See also HKSAR v Hui Rafael Junior (2017) 20 HKCFAR 264 at 281
[45].
[16] See, eg, R v Quach
[2010] VSCA 106; (2010) 27 VR 310 at 323 [45]- [46]; Obeid v The Queen [2015] NSWCCA 309; (2015) 91 NSWLR 226
at 252-253 [133]; Maitland [2019] NSWCCA 32; (2019) 99 NSWLR 376 at 391 [67];
R v Maudsley [2021] QCA 268; (2021) 9 QR 587 at 596 [21].
[17] Hui (2017) 20 HKCFAR 264
at 281 [46], quoting R v Boulanger [2006] 2 SCR 49 at 69 [49]; see also
296-297 [82], quoting Shum Kwok Sher v HKSAR [2002] HKCFA 27; (2002) 5 HKCFAR 381 at 405
[69].
[18] Hui (2017) 20 HKCFAR 264
at 282 [47].
[19] (2017) 20 HKCFAR 264 at 282
[47].
[20] Hui (2017) 20 HKCFAR 264
at 282 [47].
[21] Finn, "Public Officers: Some
Personal Liabilities" (1977) 51 Australian Law Journal 313 at 315, quoted
in Hui (2017) 20 HKCFAR 264 at 282 [47] and Quach [2010] VSCA 106; (2010) 27 VR 310
at 320-321 [37].
[22] Quach [2010] VSCA 106; (2010) 27 VR 310
at 321 [40], quoted in Hui (2017) 20 HKCFAR 264 at 282 [47]. See also
R v Boston [1923] HCA 59; (1923) 33 CLR 386 at 392, 393, 404.
[23] R v Rogerson (1992) 174
CLR 268 at 281, quoting Mulcahy v The Queen (1868) LR 3 HL 306 at
317. See also Ahern v The Queen [1988] HCA 39; (1988) 165 CLR 87 at 93.
[24] Peters v The Queen
[1998] HCA 7; (1998) 192 CLR 493 at 515 [54].
[25] Peters [1998] HCA 7; (1998) 192 CLR
493 at 516 [55].
[26] Boston [1923] HCA 59; (1923) 33 CLR 386
at 392; Rogerson (1992) 174 CLR 268 at 282-283; R v LK (2010) 241
CLR 177 at 223-224 [105].
[27] Rogerson (1992) 174 CLR
268 at 281.
[28] See, eg, Hui (2017) 20
HKCFAR 264.
[29] Elomar v The Queen
[2014] NSWCCA 303; (2014) 316 ALR 206 at 321 [608].
[30] See, eg, Rogerson (1992)
174 CLR 268 at 280-281; Truong v The Queen [2004] HCA 10; (2004) 223 CLR 122 at 143
[35].
[31] Gerakiteys v The Queen
[1984] HCA 8; (1984) 153 CLR 317 at 323; R v Gill and Henry (1818) 2 B & Ald 204 at
204-205 [106 ER 341 at 341-342]. See also R v Weaver [1931] HCA 23; (1931) 45 CLR 321 at
322.
[32] See LK (2010) 241 CLR
177 at 231 [131], citing R v Orton [1922] VLR 469 at 473 and
Gerakiteys [1984] HCA 8; (1984) 153 CLR 317.
[33] Rogerson (1992) 174 CLR
268 at 281.
[34] KRM v The Queen [2001] HCA 11; (2001)
206 CLR 221 at 226-227 [15]. See also Kirk [2010] HCA 1; (2010) 239 CLR 531 at 557
[26].
[35] Hui (2017) 20 HKCFAR 264
at 299 [93].
[36] Rogerson (1992) 174 CLR
268 at 280-281.
[37] Mining Act, Pt 5; R v
Macdonald [No 17] [2021] NSWSC 858 at [687], [692].
[38] See R v Vaughan
[1769] EngR 73; (1769) 4 Burr 2494 [98 ER 308]; Smith v Christie (1920) 55 DLR
68.
[39] See [10] above.
[40] Boston [1923] HCA 59; (1923) 33 CLR 386
at 400 (emphasis in original), quoted in McCloy v New South Wales [2015] HCA 34; (2015)
257 CLR 178 at 243 [171]. See also Re Day [No 2] [2017] HCA 14; (2017) 263 CLR 201 at
221 [49], 251 [179], 271-272 [269].
[41] Macdonald [2023] NSWCCA 250; (2023) 112
NSWLR 402 at 412 [28].
[42] (2017) 20 HKCFAR 264.
[43] (2017) 20 HKCFAR 264 at 292
[69].
[44] See, eg, Elomar [2014] NSWCCA 303; (2014)
316 ALR 206 at 320 [603], 321 [608]; R v Saffron (1988) 17 NSWLR 395 at
424-427.
[45] (1982) 29 SASR 525 at
534-535.
[46] Wright, The Law of Criminal
Conspiracies and Agreements (1873) at 72.
[47] See [18].
[48] See, eg, Saffron (1988)
17 NSWLR 395 at 425-426.
[49] See [6] and [26] above.
[50] See [9] above.
[51] See [11]-[13] above.
[52] Sher [2002] HKCFA 27; (2002) 5 HKCFAR 381
at 411 [91].
[53] cf Sher [2002] HKCFA 27; (2002) 5 HKCFAR
381 at 411 [90], quoting R v Nova Scotia Pharmaceutical Society [1992] 2
SCR 606 at 642.
[54] R v Macdonald [No 17]
[2021] NSWSC 858 at [650]- [740]; Macdonald [2023] NSWCCA 250; (2023) 112 NSWLR 402 at
412-419 [32]- [37].
[55] [2014] NSWCCA 303; (2014) 316 ALR 206 at 321
[608].
[56] Elomar [2014] NSWCCA 303; (2014) 316 ALR
206 at 321 [608].
[57] Macdonald [2023] NSWCCA 250; (2023) 112
NSWLR 402 at 428 [77]- [78].
[58] See [6], [9] and [11]
above.
[59] See Peters [1998] HCA 7; (1998) 192
CLR 493 at 508 [28]- [30] in relation to the characterisation of "dishonest"
means in a conspiracy to defraud.
[60] R v Macdonald [No 17]
[2021] NSWSC 858 at [2041].
[61] See [15] above.
[62] (2017) 20 HKCFAR 264 at 301
[99].