Three NSW Liberal lobbyists struck a deal with fugitive Sydney developer Jean Nassif to be paid $2 million to help an accused fraudster fire a then-buildings commissioner and oust a cabinet minister, explosive evidence from a corruption probe has revealed.
In her sensational opening statement at the Independent Anti-Corruption Commission’s inquiry into Nassif’s ties to the Liberal Party, barrister Peggy Dwyer, SC, detailed an elaborate funding scheme designed to benefit the software developer and his now-defunct company Toplace.
As well as calling for then-commissioner David Chandler to be removed from office, Nassif sought to destroy the political career of former police minister and Baulkham Hills MP David Elliott, Dwyer told the commission.
A phone call was made to the commission where Nassif was heard boasting that he had achieved his goal, saying: “I am evicting (sic) his seat … no more Baulkham Hills group. No seat.” The Baulkham Hills were abolished in the redistribution of boundaries.
Another call suggested Nassif had early warning of a cabinet reshuffle after Dominic Perrottet becomes prime minister in October 2021, apparently aware that front-runner Eleni Petinos would replace fair trade minister Kevin Anderson.
“I’m going to step on his neck and take his job,” Nassif was heard saying, referring to Chandler. “Just give me two months, because the minister of consumer affairs, she’s going to be my girl, and the minister of fair trade, she’s going to be one of my girls too, you know?”
Two months after the recording, Perrottet replaced Anderson with Petinos in a cabinet reshuffle. By early 2022, Chandler had resigned following an investigation into him ordered by Petinos’ office.
The commission was told Nassif met with party executives Jeremy Greenwood, Christian Ellis and Charles Perrottet on April 25, 2020.
Dwyer said evidence would emerge to show that following the meeting, it was agreed that Nassif would pay Greenwood, Ellis and Charles Perrottet “substantial sums of money to support their membership recruitment and/or renewal of membership in the Hills, in order to gain control of the Liberal Party pre-selection.”
“This will enable Mr Nassif to influence the Hills Shire Council and achieve other political goals,” he said. Dwyer said evidence will show that Ellis, Greenwood and Charles Perrottet expected to receive $2 million from Nassif to split equally between them.
Dwyer has also revealed that ICAC was made aware of the allegations about Nassif by Liberal Party figures not only through a June 2022 speech to state parliament by Liberal MP Ray Williams, but also by the NSW Police.
A day before Williams told parliament of allegations of corruption within his party, the police revealed that the ICC legally intercepted WhatsApp messages from Nassif’s phone containing communications with two brothers of former prime minister Dominic Perrottet – Charles and Jean-Claude. Dominic is not accused of any wrongdoing.
“WhatsApp conversations and phone hacking showed that Charles Perrottet may have used his position within the Liberal Party to benefit Mr Nassif’s business interests,” Dwyer said.
“Legitimately intercepted information also showed that Mr Nassif was in a relationship with not one but two of Dominic Perrottet’s brothers.”
He said the wiretaps show that Nassif wanted to deepen their relationship with Dominic in order to help get Chandler out of his position.
“Mr. Nassif wanted the building commissioner removed because he had highlighted several defects in the Toplace development, and was preventing Mr. Nassif’s development from being approved,” Dwyer said.
Phone taps played during the opening speech on Monday, including Jean-Claude Perrottet, captured Nassif bragging about his influence on the former state government and boasting that the far-right wing of the party had declared “Jean Nassif is our godfather”.
Catholic Schools NSW, and its boss Dallas McInerney who is a right-wing Liberal broker, will also take part in the inquiry.
Dwyer told the commission Catholic Schools NSW, under McInerney’s direction, paid government relations firm Greenwood Beckington more than $130,000 over two years “in circumstances where there appears to be little or no evidence of significant work being done to justify the amount”.
When the payments stopped, Catholic Schools NSW began paying JPG Consulting, another company linked to Greenwood. The payout totaled $135,000, Dwyer said.
The commission is investigating allegations that figures from the NSW Reform Party including Robert Assaf, Jean-Claude Perrottet and Dylan Whitelaw were offered good employment contracts by. Catholic Schools NSW.
These were allegedly organized by McInerney with the understanding that some of that time would be used to recruit members of the Liberal branch.
Dwyer said he hopes to submit to the inquiry that these payments are gifts under the Electoral Funding Act and “were made on the basis of claims for payments to retainers for whom no or no basic services were provided, or which was fraudulent”.
Dwyer said the commission will investigate allegations that Reform figures knew the donations were fraudulent. He read a text message from Greenwood to Jean-Claude Perrottet: “Hey, so you know how good I am to you and help you and give you all your dirty school money, and put up with your f—ing whining.”
Dwyer also explained the role the NSW Liberals played in the funding scheme, which was designed not only to keep branches and members who would support Nassif’s progressive proposals but also to keep a conservative takeover of the NSW Liberals.
The first witness to appear on Monday was hotel owner Michael O’Hara, who told the commission he believed he was giving money to the NSW Reformers as a group that aligned with his conservative values. He said he would not consider donating to the NSW Liberals because they had become “a bit toxic”.
O’Hara, who was a long-time business partner of Liberal leader Damien Tudehope, said he dropped his support for former prime minister Dominic Perrottet because he had “woke up” and seemed too progressive in his social views.
The 83-year-old was asked about payments his firm made to Beckington for “wealth investment strategy advice.” O’Hara admitted he received no such advice.
O’Hara said in his opinion the advice “was that he should go and do what he (Ellis’) could to get my conservative values into the Liberal Party”.
Dwyer told the commission that three witnesses have so far refused to testify to the investigation, including Nassif, who fled to live in rural Lebanon. There is a warrant for his arrest for serious fraud.
Ellis lives in London, and told the commission that his family commitments and time zones make it difficult for him to testify, Dwyer said.
Dwyer said Ellis has been told the commission will be ready to hear his testimony via video link at a time convenient for him. Meanwhile, James Tudehope, son of Liberal frontbench MP Damien Tudehope, who used to work in Catholic Schools NSW, has moved to New Zealand.
James Tudehope “has contacted various people named in the allegations” but has not agreed to testify.
“He has close contact with his father and is legally represented in these cases,” Dwyer said. “He is aware that the commission would like to speak to him and has refused to assist by giving oral evidence at this public inquiry.”
Damien Tudehope stands aside from his front position as the investigation continues. He is not accused of any crime but will be called a witness.
Asked about Petinos’ future in the shadow cabinet, a spokeswoman from Liberal Leader Kellie Sloane’s office said: “It would be inappropriate to comment on issues that arise during ICAC meetings or engage in speculation while proceedings are ongoing.
“Everyone involved is entitled to procedural fairness, and we will respect the integrity of the ICAC process.” Petinos is currently on maternity leave.
The inquiry will also look at allegations that two Labor Strathfield councillors, Sharangan Maheswaran and Karen Pensabene, engaged in conduct towards their fellow councillor, Matthew Blackmore, in a manner “which involves a dishonest performance or part of their official duties and/or breach of public trust, including conduct which may amount to treason” and a possible breach of the Infringement Act.
Maheswaran was formerly Nassif’s lawyer and an executive at Toplace.
— with Michael McGowan
Start the day with a summary of the day’s most important and interesting stories, analysis and insights. Sign up for our Morning Edition newsletter.
Alexandra Smith is a senior writer and former government politics editor for The Sydney Morning Herald.Connect through X or email address.
Jessica McSweeney is a reporter at The Sydney Morning Herald covering state politics and urban affairs.Connect through email address.
