ICAC finds former NSW Labor MPs corrupt

A cabinet document was altered to deliver millions to the family of now jailed ex-MP Eddie Obeid - and three former NSW ministers could be facing criminal charges.

The Independent Commission Against Corruption investigated controversial water infrastructure company Australian Water Holdings during a 2014 inquiry which embroiled both sides of politics.

On Thursday, it revealed that it had found then-Labor MPs Eddie Obeid, Joe Tripodi and Tony Kelly engaged in serious corrupt conduct in relation to a lucrative public-private partnership proposal by AWH.

Mr Kelly's former chief of staff Gilbert "Laurie" Brown also did so, the ICAC report on Operation Credo states.

Advice prepared by an expert consultant submitted to Mr Kelly's office scotched the PPP and urged government not to enter negotiations with AWH but the minute later submitted to the budget committee reversed that recommendation.

ICAC heard this enabled AWH to proceed to negotiation with the NSW government over the partnership that could have delivered millions to the company for which Obeid's son worked and in which his family had shares.

Additionally, two findings of corrupt conduct were made against Obeid, who is already in jail for misconduct in public office relating to a lucrative Circular Quay lease.