Key facts
- A corruption inquiry is investigating alleged breaches of the Electoral Funding Act.
- Secret tape recordings feature a developer, Jean Nassif, boasting about influencing government and threatening officials.
- Allegations suggest Nassif funded a Liberal Party branch stacking operation through 'sham' consultancy payments.
- The operation, run by a group called the Reformers, aimed to advance a conservative agenda and secure favourable outcomes.
- The alleged scheme involved millions of dollars in payments, potentially circumventing donation laws.
- Key figures in the alleged operation include sons of a former NSW premier and principals of PR firms.
An inquiry into alleged electoral funding breaches has laid bare an internal ideological war within the Liberal Party, involving secret tape recordings, 'sham' payments, and a large-scale branch stacking operation. Developer Jean Nassif, now a fugitive, is accused of using millions of dollars to fund a group of Liberal operatives known as the Reformers.
Counsel assisting the New South Wales Independent Commission of Inquiry, Dr Peggy Dwyer SC, detailed allegations that the Reformers engaged in a major branch stacking operation to seize control of the Liberal Party and advance a conservative agenda. This influence was allegedly used to secure outcomes for Nassif, including the loss of preselection for the Baulkham Hills MP David Elliott and the resignation of building commissioner David Chandler.
Dwyer alleged that consultancy payments made by Nassif and others to principals of two public relations firms, Christian Ellis and Jeremy Greenwood, over three years were 'sham' payments for which no real work was provided. Instead, these payments are alleged to have been illegal donations designed to avoid donation caps or to funnel funds from banned donors, such as those from the property and gaming industries.
The alleged amounts are substantial, with Nassif reportedly contributing $2 million, the Catholic Schools Association over $250,000, and lawyer-turned-publican Michael O’Hara $125,000. O’Hara is also the former law partner of Liberal powerbroker Damien Tudehope, who has stood down from the frontbench after being called as a witness.
The inquiry has reportedly obtained encrypted messages between the individuals central to the investigation and has evidence of fundraisers attended by high-profile figures, including former Prime Minister Tony Abbott and broadcaster Alan Jones. Dwyer stressed that these are allegations and the ICAC Commissioner, Fabian Gleeson SC, will determine the nature of the payments and the intentions of those involved.
The Reformers' own dossier outlined plans to recruit 5,000 members by 2022, secure 75% of NSW parliamentary seats for conservatives by 2023, and gain control of the NSW state executive, with a conservative agenda on issues like same-sex marriage, abortion, and euthanasia. The inquiry highlighted the potential for money in politics to corrupt decisions on developments, preselections, and attempts to unseat officials.
The report also briefly mentioned a separate allegation of blackmail involving Labor councillors at Strathfield council, uncovered during the same operation. The inquiry's findings come at a time of low trust in major political parties.