The Independent Commission Against Corruption have recommended criminal charges against two former high-profile ministers of the Australian Labor Party.

In an explosive inquiry in Sydney going on for months now, the commission has found that Eddie Obeid, a former powerful minister in the New South Wales state and Ian Macdonald, former state resources minister, were guilty of corruption on a coal-mining deal.

The two former ministers were referred by the commission to the Director of Public Prosecutions who will consider also whether to file criminal charges over the mining scam which made Mr. Obeid and his family millions of dollars richer.

Mr. Obeid's son, Moses, and five other powerful businessmen including one of the wealthiest men in Australia, Travers Duncan, was also referred to the office of public prosecutions for several offences concerning the Mount Penny mine.

The damaging findings of the Independent Commission Against Corruption may have a negative impact on the Australia Labor Party's national image. The Labor party is currently facing stiff competition with the Coalition in the coming elections later in the year.

Before news of the commission's findings came out, Labor leader and Prime Minister of Australia Kevin Rudd said he had been disgusted by his former party members' behaviour. He also said if other members were found to be involved in any illegal activity, they should be held accountable for their actions and face justice.

Kevin Rudd firmly said anyone who is corrupt should face the "full force of the law".

Mr. Obeid and Mr. Macdonald have been kicked out from the Labor Party. The inquiry is touted as the biggest in the history of New South Wales. The commission heard testimonies from 150 witnesses over the course of six months. People were lining up for hours just to see the proceedings.

Mr. Obeid has earlier denied he used highly confidential information to his advantage regarding a possible coal licence to create a scam and dupe the people of New South Wales. He was accused of conspiring with Mr. Macdonald to set up a 2008 tender to grant the licence over a piece of land at Mount Penny. It was also the same land that he and his family bought in secret between 2007 and 2008.

The commission also found that Mr. Obeid negotiated a quarter ownership of Cascade Coal in exchange for access to the land in Mount Penny. Cascade Coal won the tender for the licence to explore which was worth SAU500 million.

Mr. Obeid hid his ownership of the company through a complicated series of companies and trusts managed by his business associates. The commission will forward its findings to the Australian Tax Office and the Australian Stock Exchange for further investigation.

The Director of Public Prosecutions will get to decide on the fate of Mr. Obeid and Mr. Macdonald and consider if they will face a conspiracy to defraud charge.