Blackmail, ‘mafia boys’ and rants from a Beirut bedroom – after 10 weeks of theatre what might Icac deliver?

Individuals who appeared at Icac Operation Rosny hearings include, from left, (top row) Jean Nassif, Jeremy Greenwood and Charles Perrottet, and (bottom row) Damien Tudehope, Sharangan Maheswaran and Anita Perrottet. Composite: Icac View image in fullscreen Individuals who appeared at Icac Operation Rosny hearings include, from left, (top row) Jean Nassif, Jeremy Greenwood and Charles Perrottet, and (bottom row) Damien Tudehope, Sharangan Maheswaran and Anita Perrottet. Composite: Icac Analysis Blackmail, ‘mafia boys’ and rants from a Beirut bedroom – after 10 weeks of theatre what might Icac deliver? Penry Buckley You could be forgiven for thinking the inquiry has been a bit of a damp squib. But high-profile resignations are not the only measure of Icac’s success Get our breaking news email, free app or daily news podcast Many people watching the Independent Commission Against Corruption hearings in Sydney over the past two months have come to admire the forensic questioning of the counsel assisting the inquiry, Peggy Dwyer SC. As she set out the complicated allegations in detail on the opening day in July, Dwyer emphasised the central role of electoral donations laws, observing: “Money in politics, as in other spheres of life, has the potential to corrupt.” But on Tuesday, 10 weeks after her opening comments, Icac’s public hearings for Operation Rosny ended with a whimper rather than a bang. As the commission detailed allegations of blackmail by Labor councillors in Sydney’s inner west, you could have been forgiven for thinking the whole show was a bit of a, well, damp squib. It began with the promise of allegations that senior New South Wales Liberal politicians supported the branch-stacking efforts of a factional group of young conservative Christians known as the Reformers. But it concluded without a major scalp, disappointing those Icac watchers expecting another spectacle like the premiership-ending appearances of Gladys Berejiklian, Barry O’Farrell and Nick Greiner. Anthony Whealy KC, the chair of the Centre for Public Integrity and a former Icac assistant commissioner, says the measure of an inquiry’s success does not have “anything to do with resignations”. View image in fullscreen Peggy Dwyer gives her opening statement at the Icac inquiry. Photograph: Bianca de Marchi/AAP The impact of Rosny – and its three main allegations that Whealy likens to a “three-tentacled octopus” – will be twofold. “We will get a series of definitive rulings on what is a political donation … [in] a carefully considered report that draws all these strands together,” he says. And, second, and most importantly, he says, “this will have all played out in public”. When it comes to political donations, Icac was investigating whether the Reformers took prohibited or undeclared donations to support branch stacking. They planned to recruit 5,000 Christian conservatives “and thereby take control of the NSW division of the Liberal party”. They wanted to deliver more conservative policies on abortion, euthanasia, marriage equality and climate change. The anti-corruption watchdog examined whether three Liberal figures took $2m in donations from property developer Jean Nassif to support branch stacking, damage the career of the then Liberal minister David Elliott and remove the building commissioner David Chandler. Some of those named in the allegations stated payments for factional work do not count as donations to a political party. Or, alternatively, that the payments were for genuine lobbying and consulting work, not political outcomes. In response to a recent parliamentary question about whether payments to factional groups inside parties were donations, the NSW Electoral Commission said it would not comment on matters referred to Rosny. Icac’s ruling in the untested area should be more conclusive. Rosny’s public hearings have been, at times, darkly entertaining. There’s been tragedy, comedy and unintended satire. The drama’s climax was Nassif’s appearance via video link from his Beirut bedroom. Over two days, Nassif raged against allegations of corruption – as well as Elliott and Chandler. He claimed he had left Australia to receive “an international award for number one businessman from [an] Arabic background” and would return after he had collected “a beautiful legal team who are willing to fight politicians – to clear my name”. But, he told the patient Dwyer, he would not come back to be “killed by the mafia boys”. View image in fullscreen Jean Nassif during his Icac appearance. Photograph: Icac Whealy describes Nassif’s appearance as the “theatre of the absurd”. It is his opinion that most of the fugitive developer’s evidence will not be accepted by the commission. The transparency advocate says “20 years ago” public hearings could expose witnesses to embarrassing media coverage before any findings of corruption were made or criminal prosecutions recommended. These days the rules of procedural fairness are “very carefully observed”, he says, such as making it very clear when someone is not the subject of any Icac allegations. Still, Whealy’s take does not appease those who were tangentially caught up in proceedings. One senior Liberal complained of the frequent “name-dropping” of politicians not subject to allegations. The federal opposition leader, Angus Taylor, faced frequent questions from reporters outside Icac about a messages revealed during the early days of Rosny about a plan to “shake down Angus for 10K”. Taylor, who is not accused of wrongdoing, was forced to repeatedly deny making payments to the Reformers. He declined to provide a “running commentary” on matters before Icac. There have been consequences for some of those named in Icac’s allegations. The person who sent the “shake down Angus” message, Taylor’s factional ally, Dallas McInerney, lost his job as the chief executive of Catholic Schools NSW, days after he admitted performing a factory reset on his iPhone. He had potentially wiped critical evidence after receiving a security alert from his bank. View image in fullscreen Damien Tudehope arrives to give evidence at the Icac inquiry. Photograph: Bianca de Marchi/AAP Damien Tudehope, whose upper house seat will be contested at next year’s NSW election, was not named in Icac’s allegations. He has been referred to the parliamentary privileges committee after he admitted to leaking a confidential draft report from a 2023 parliamentary inquiry to Liberal factional figure Jeremy Greenwood. He remains stood aside as the Liberals’ upper house leader and shadow attorney general. Charles Perrottet, a person of interest in the Nassif drama, has taken leave of absence from his role as head of strategy at BP during the inquiry. Other witnesses have cited the strain on their lives in the four years since the then premier Dominic Perrottet referred allegations in a June 2022 parliamentary speech to the watchdog. The former premier’s name has been dropped more than most. He appeared in messages as “Dom” and in phone taps of Nassif as “my boy” and “my best friend”. Two of his 11 siblings, Charles and Jean-Claude, and his sister-in-law Anita appeared before the inquiry. Anita Perrottet, who was not named in Icac’s allegations, rejected the suggestion she had lied to the commission to cover illegal donations to her husband. The presiding commissioner, Fabian Gleeson SC, stated explicitly for the record in week six that Dominic Perrottet was not a person of interest – ending speculation the former premier, who now lives and works in the US, could make a surprise appearance. Whealy says Dominic Perrottet retains a “sparkling reputation”. He was not called and that is “a reflection of the fact that he’s not a person of interest in this, and even though he might have been able to give some peripheral assistance, it’s not needed”. Branch stacking – the recruitment or renewal of members to a political party – is not itself illegal. It takes place on both sides of politics, but the role it plays in the choice of candidates or policy might be a surprise to many voters. Regardless of what Icac officially finds and recommends, it is hard – knowing what we now know – not to see the rise of the conservative right in the NSW Liberal party and wonder about the role of the Reformers. In her opening remarks, Dwyer emphasised the “vital role” electoral funding laws play in ensuring a level playing field. “They promote public confidence in a fair go for politicians and political aspirants,” she said, “and for the public they are entrusted to serve.” Penry Buckley is Guardian Australia’s NSW state reporter Explore more on these topics Independent Commission Against Corruption New South Wales politics Liberal party analysis Share Reuse this content