NSW corruption probe implicates Liberal Party figures, Catholic Schools NSW in illegal donations and branch-stacking
Consensus Summary
A major corruption probe by NSW’s Independent Commission Against Corruption (ICAC), known as Operation Rosny, has exposed allegations of illegal political donations and branch-stacking involving senior Liberal Party figures and Catholic Schools NSW. At the center is Dallas McInerney, the CEO of Catholic Schools NSW, who resigned from the NSW Education Standards Authority board and temporarily stepped aside from his role after ICAC revealed he allegedly arranged undeclared donations exceeding legal limits to recruit Liberal Party members. The investigation also implicates McInerney’s allies, including fugitive developer Jean Nassif, and the Perrottet brothers—Jean-Claude and Charles—who are accused of soliciting donations from prohibited sources. Both the Liberal and Labor parties have suspended members named in the probe, with Opposition Leader Kellie Sloane suspending McInerney and Jeremy Greenwood, while Premier Chris Minns suspended Labor councillors Sharangan Maheswaran and Karen Pensabene over allegations of blackmail and surveillance. ICAC’s eight-week public hearings, starting July 27, 2026, aim to uncover whether donations were used to influence political outcomes, including targeting former ministers and officials. The scandal has raised concerns about public trust in major parties amid broader disillusionment with political integrity.
✓ Verified by 2+ sources
Key details reported by multiple sources:
- Dallas McInerney, CEO of Catholic Schools NSW, resigned from the NSW Education Standards Authority board on July 2, 2026, after ICAC revealed allegations he arranged and approved undeclared political donations exceeding legal caps to recruit Liberal Party members.
- ICAC’s Operation Rosny is investigating whether political donations were made by or on behalf of fugitive developer Jean Nassif and Toplace Pty Ltd from prohibited donors, solicited by Christian Ellis, Jeremy Greenwood, and Charles Perrottet between 2020 and 2023.
- Jean-Claude Perrottet (media manager at Catholic Schools NSW) and his brother Charles Perrottet are under investigation for soliciting or accepting political donations, including from prohibited donors.
- NSW Opposition Leader Kellie Sloane suspended Liberal Party members Jeremy Greenwood and Dallas McInerney pending the ICAC investigation.
- NSW Premier Chris Minns suspended Labor councillors Sharangan Maheswaran and Karen Pensabene over allegations of blackmail and breaches of public trust involving Strathfield Council.
- ICAC’s public hearings for Operation Rosny will run for eight weeks, starting July 27, 2026.
- McInerney temporarily stepped aside from his day-to-day responsibilities at Catholic Schools NSW as part of interim governance arrangements.
- Former NSW Premier Dominic Perrottet’s brothers, Jean-Claude and Charles, are named in the ICAC allegations, though Dominic himself is not accused of wrongdoing.
Points of Difference
Details reported by only one source:
- McInerney was convicted in 1995 for harassing a pizza shop owner who displayed Labor Party posters, using a campaign office phone to call up to 20 times a day for four weeks, resulting in a fine and a two-year good behaviour bond.
- McInerney was previously touted as a Liberal Senate candidate to replace Jim Molan and has controlled the right-wing faction of the NSW Liberals for years.
- McInerney and Charles Perrottet were elected to the NSW Liberal Party’s Local Government Oversight Committee in 2019, giving them control over local government candidate selections.
- An anonymous dossier tabled in NSW parliament alleged Hills Shire councillors were replaced through manipulation and abuse of the selection process in the 2021 local government elections, with Jean Nassif at the center of the allegations.
- Robert Assaf, former communications manager for Catholic Schools NSW, is also facing allegations of soliciting political donations from prohibited donors and later became head of corporate affairs at Greyhound Racing NSW, which employs Greenwood’s firm as its lobbyist.
- Strathfield Labor councillor Matthew Blackmore resigned in March 2023 after being targeted by a private investigator hired by Maheswaran and Pensabene, who allegedly followed and recorded his conversations for five months.
- McInerney was working as a staffer for Liberal MP Chris Downy during the 1995 harassment incident.
- The ICAC investigation was referred at least in part by the NSW Electoral Commission.
- The most serious allegation involves donations solicited from Jean Nassif to hurt the career of then-minister David Elliott and remove building commissioner David Chandler, who had ordered Toplace to repair apartment buildings before the company collapsed owing about 600 creditors nearly $1.88 billion.
- Geoffrey Watson SC, counsel assisting in past ICAC inquiries, described Operation Rosny as one of the largest investigations ICAC has ever undertaken, noting that eight-week hearings are exceptional.
- Kellie Sloane stated the allegations do not meet the standard she expects and expressed support for ICAC’s full powers to investigate, emphasizing the need to clear the names of good party members.
Contradictions
Conflicting information between sources:
- The SMH states McInerney resigned from the NSW Education Standards Authority board on July 2, 2026, while the ABC does not specify the exact date of his resignation but confirms he stood aside after being named in the probe.
- The SMH mentions McInerney was fined and placed on a two-year good behaviour bond for harassment in 1995, but the ABC does not reference this historical conviction.
Source Articles
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