Four Corners on Monday investigated whether members' of corrupt politician Eddie Obeid's family may have secretly backed controversial coastal property developments, including at the seaside town of Hawks Nest.

While Eddie Obeid and his second son are in jail, a preview to the program suggested two of his other sons, Gerard and Eddie junior, may have been involved with plans to build a $100 million, 140 apartment development beachside, next to Hawks Next golf club.

Karuah Local Aboriginal Land Council sold two parcels of land next to the golf club in 2016 for $1.5 million, according to former chief executive officer, Len Roberts, who is now a councillor at MidCoast Council.

The sale was a windfall for the land council which was in financial dire straits at the time, and the figure was double what the land was valued at, he said. "It's not sacred land," he said. "People often question why Aboriginal people sell land, and the reality is that asking that question is actually racist ... that is saying Aboriginal people should not do what everybody else does."

Mr Roberts said while some people may not have attended the final meeting, there were many meetings leading up to that point and no one objected to the sale, which involved a board members' vote and a "rigorous process". Ultimately, it was sold to two companies, Core Property Developments and Leric Group Pty Ltd. "I know nothing about either of them," Mr Roberts said.

The Four Corners investigation describes Leric's sole director, Merwin 'Memo' Ibrahim, as a "key figure' in the Obeids' coastal property interests, and a long-standing family friend, with multiple links to developments backed by the Obeid family.

But Mr Ibrahaim told the ABC that had never been in business with any members of the Obeid family. Gerard and Eddie junior did not respond to questions put to them by the program, but Laurus Projects, the developer of another project Four Corners alleged the brothers had backed, told Four Corners that the Obeid family had no involvement in that project.

"They (Four Corners) put to me, did I know that the Obeids may have been behind that purchase - and I said no, I didn't know, and if I'd known it was the Obeids I would have given them short shrift," Mr Roberts said.

The Four Corners report says Hawks Nest locals fear the golf club luxury apartments development will set a precedent, leading to the development of another parcel of land owned by the land council - a beachfront strip stretching across 270 hectares. But so far it remains in the hands of the land council.

MidCoast Council mayor, David West, said from the council's point of view, the proposed development of luxury apartments was "just a DA". "From a real estate point of view that's exactly what it is," he said.

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