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NSW Liberals used Reformers funds for personal expenditure, Icac hears

Created at 31 Jul · 6:11 AM1 source↑ Market-relevant
IN SHORT

A member of the NSW Liberal faction 'Reformers' told a corruption inquiry that funds solicited for political purposes were used for personal expenses, including a bucks night. The inquiry is investigating allegations of illegal donations and branch stacking.

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Key Numbers

600schools in NSW governed by Catholic Schools NSW
10Kdollars Angus Taylor was allegedly asked to 'shake down' for
15kdollars injection allegedly received from Angus Taylor
3kdollars monthly donation allegedly received from Angus Taylor

Who's Involved

Robert Assaf
Reformers member testifying at Icac inquiry
Peggy Dwyer SC
Counsel assisting Icac
Michael O’Hara
Prohibited donor who paid Beckington
Christian Ellis
Founder of lobbying firm Beckington
Jean-Claude Perrottet
Reformers member, brother of former premier
Dylan Whitelaw
Reformers associate, formerly employed at Catholic Schools NSW
Dallas McInerney
Chief executive of Catholic Schools NSW
Angus Taylor
Federal opposition leader, denies making payments
Fabian Gleeson
Icac presiding commissioner
Damien Tudehope
NSW shadow attorney general, Liberal leader in upper house
Jeremy Greenwood
Named in Icac's allegations

↳ Why This Matters

The testimony raises serious questions about the integrity of political fundraising and the use of funds within the NSW Liberal Party, potentially impacting public trust and leading to further regulatory scrutiny.

Key facts

  • Funds solicited by the NSW Liberal faction 'Reformers' were allegedly used for personal expenditures, including a bucks night.
  • The Independent Commission Against Corruption (Icac) is investigating allegations of illegal donations and branch stacking by the Reformers.
  • Robert Assaf, a Reformers member, testified that money from a prohibited donor was channelled through a lobbying firm for tax benefits.
  • Assaf admitted to using Reformers funds as an advance for personal expenditure, describing the practice as 'tricky'.
  • There were alleged attempts to solicit funds from federal opposition leader Angus Taylor, which he denies.

Robert Assaf, a member of the NSW Liberal faction known as the Reformers, told the Independent Commission Against Corruption (Icac) that funds solicited for political purposes were used for personal expenditures, including a bucks night.

Assaf testified that money from a prohibited donor, Michael O’Hara, was channelled through Beckington, a registered lobbying firm set up by the group and run by Christian Ellis. O’Hara had previously admitted to a fake arrangement with Beckington for 'strategic wealth strategy investment advice'. Assaf stated that moving the funds through Beckington was to create 'the maximum benefit from a tax perspective', though he later acknowledged knowing that creating fake invoices to minimise tax was illegal.

Assaf admitted to temporarily using funds from the Reformers' account for a bucks night, describing the practice as 'tricky' and an 'advance on our personal expenditure'. He recalled a WhatsApp message from Jean-Claude Perrottet, brother of former premier Dominic Perrottet, stating, 'Rob has the bucks cash coming back.'

The inquiry also heard that Assaf was employed at Catholic Schools NSW alongside Dylan Whitelaw, a Reformers associate. Dallas McInerney, chief executive of Catholic Schools NSW, is alleged to have arranged payments to the Reformers through Beckington. Assaf confirmed he knew that money paid to Beckington was funding work Whitelaw was doing for the Reformers.

Assaf also recalled messages suggesting attempts to solicit funds from federal opposition leader Angus Taylor. One message from McInerney stated he wanted to 'shake down Angus for 10K', and another from Whitelaw claimed McInerney had received 'the commitment from Angus, the 15k injection plus a 3k monthly donation'. Assaf stated he did not believe Angus Taylor's involvement worked out, and Taylor has denied making any payments to the group.

During Assaf's testimony, Icac commissioner Fabian Gleeson intervened multiple times, at one point telling Assaf he had become 'a bit argumentative'.

Upcoming witnesses include Damien Tudehope, NSW shadow attorney general, and other Reformers members Jean-Claude Perrottet and Jeremy Greenwood, who have also been named in Icac's allegations.

Frequently asked questions

Branch stacking is a practice where individuals or groups recruit or renew party members in large numbers, often through questionable means, to gain influence within a political party.

The Reformers are a group of young conservative Liberal power brokers in New South Wales accused of soliciting illegal donations and engaging in branch stacking to promote conservative policies.

Beckington is a registered lobbying firm set up by the Reformers and run by member Christian Ellis. It allegedly received funds from a prohibited donor and was used to funnel money for the group's activities.

No, Angus Taylor is not accused of wrongdoing. He has denied making any payments to the Reformers group.

What Happens Next

01Icac hearings are scheduled to continue.
02The inquiry will hear from NSW shadow attorney general Damien Tudehope.
03Jean-Claude Perrottet and Jeremy Greenwood are also scheduled to give evidence.

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Cadence

How It Developed

Robert Assaf, a member of the NSW Liberal faction 'Reformers', testified before the Independent Commission Against Corruption (Icac).
The inquiry is investigating allegations that the Reformers solicited or accepted illegal donations for branch stacking.
Assaf stated that funds from prohibited donor Michael O’Hara were moved to a lobbying firm, Beckington, for tax benefits.
O’Hara admitted to a fake arrangement for 'strategic wealth strategy investment advice' with Beckington.
Assaf admitted to temporarily using Reformers funds for a bucks night, describing the arrangement as 'tricky'.
Assaf confirmed knowing that money paid to Beckington was to fund work for the Reformers.
Assaf recalled messages suggesting attempts to solicit funds from Angus Taylor, which Taylor denies.
The Icac commissioner intervened, telling Assaf to concentrate and answer questions.

Sources

T1
‘Rob has the bucks cash’: NSW Liberals used Reformers funds to pay for ‘personal expenditure’, Icac hearsThe Guardian

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