NSW corruption inquiry implicates Liberal Party, Catholic Schools NSW, and Labor councillors
Consensus Summary
The Independent Commission Against Corruption (ICAC) launched Operation Rosny, an eight-week inquiry starting July 27, investigating allegations of illegal political donations to the NSW Liberal Party, including undeclared and over-cap contributions from Catholic Schools NSW. Dallas McInerney, CEO of Catholic Schools NSW and a close ally of federal Opposition Leader Angus Taylor, resigned from the NSW Education Standards Authority board on July 1 and stood aside from his CEO role on July 2 after ICAC announced the probe. The inquiry implicates Liberal operatives Christian Ellis, Jeremy Greenwood, Robert Assaf, and Charles Perrottet, as well as fugitive developer Jean Nassif, who allegedly used prohibited donations to recruit party members and target political rivals. Strathfield Labor councillors Sharangan Maheswaran and Karen Pensabene are also accused of misconduct, including blackmail and surveillance, leading to their suspension by Premier Chris Minns. Opposition Leader Kellie Sloane suspended Liberal members Greenwood and McInerney pending the inquiry, while McInerney’s past conviction for harassment in 1995 was highlighted. The investigation follows allegations of branch-stacking in Hills Shire council and broader concerns about political donation laws.
✓ Verified by 2+ sources
Key details reported by multiple sources:
- Dallas McInerney stood aside as CEO of Catholic Schools NSW on Thursday (July 2) after ICAC announced an inquiry into alleged illegal political donations from the organisation to recruit Liberal Party members.
- McInerney resigned from the NSW Education Standards Authority board on Wednesday (July 1).
- The ICAC inquiry (Operation Rosny) will examine whether McInerney signed off on undeclared political donations exceeding legal caps, allegedly arranged to recruit Liberal Party members.
- The ICAC inquiry will hold eight-week public hearings starting July 27, investigating allegations involving Liberal operatives Christian Ellis, Jeremy Greenwood, Robert Assaf, and Charles Perrottet.
- Jean Nassif, a fugitive Sydney property developer, is central to the inquiry, with allegations that his company Toplace made prohibited political donations solicited by Ellis, Greenwood, and Charles Perrottet.
- Strathfield Labor councillors Sharangan Maheswaran and Karen Pensabene are accused of dishonest conduct, including blackmail and possible breaches of the Surveillance Devices Act 2007, targeting Strathfield councillor Matthew Blackmore.
- Matthew Blackmore resigned as Strathfield mayor in March 2023, citing 'overtures' from unnamed people.
- NSW Premier Chris Minns suspended Maheswaran and Pensabene from the Labor Party pending the ICAC investigation.
- NSW Opposition Leader Kellie Sloane suspended Liberal members Jeremy Greenwood and Dallas McInerney from the party pending the inquiry.
- McInerney was previously convicted in 1995 for harassing a pizza shop owner (calling up to 20 times a day for four weeks) over Labor Party posters in the shop window.
- The ICAC inquiry will investigate whether political donations were made by or on behalf of Jean Nassif and Toplace Pty Ltd in 2020 and 2023.
Points of Difference
Details reported by only one source:
- Former Liberal minister David Elliott called for federal Opposition Leader Angus Taylor to resign due to his close ties to McInerney, who was Taylor’s campaign treasurer.
- Elliott warned that NSW frontbenchers could lose their jobs during the eight-week ICAC hearing starting July 27.
- McInerney was touted as a Liberal Senate candidate to replace Jim Molan.
- McInerney did not step aside from Catholic Schools NSW until Thursday, despite offering to stand aside from the NSW Education Standards Authority board on Wednesday.
- The ICAC will also examine whether donations were made to 'damage the political career' of Elliott and remove then-building commissioner David Chandler.
- Former Labor councillor Sharangan Maheswaran claimed his role in ousting Blackmore was an 'invention'.
- NSW Opposition Leader Kellie Sloane called the allegations a 'massive distraction' ahead of an election and said she had not asked the Liberal Party to verify claims made by MP Ray Williams in a 2022 speech.
- Premier Chris Minns said political donation laws 'potentially' needed overhaul but would wait to see the full scope of evidence.
- McInerney was fined and placed on a two-year good behaviour bond in 1995 for harassment.
- An anonymous dossier tabled in NSW parliament alleged manipulation of the Hills Shire council selection process in 2021, linked to Nassif.
- The ICAC inquiry is described as 'ambitious' and 'one of the larger investigations ICAC has ever undertaken,' with an eight-week hearing being 'exceptional'.
- Geoffrey Watson SC (counsel assisting in past ICAC inquiries) stated the most serious allegation involved donations from Nassif to hurt the career of then-minister David Elliott and remove building commissioner David Chandler.
- Chandler had ordered Toplace to repair apartment buildings before the company collapsed owing about 600 creditors nearly $1.88 billion.
- Watson said the allegations would hurt public confidence in major parties, leading to voter disillusionment.
- McInerney’s father, John Perrottet, is on the board of Catholic Schools NSW, while his brothers Charles and Jean-Claude Perrottet are under investigation.
Contradictions
Conflicting information between sources:
- Article 1 (SMH) states McInerney stood aside from Catholic Schools NSW on Thursday, while Article 3 (ABC) says he 'stood aside' without specifying the exact date, but both confirm the timing was after ICAC’s announcement.
- Article 1 (SMH) mentions McInerney was 'touted as a Liberal candidate for the Senate to replace Jim Molan,' but does not specify if this was confirmed or speculative, while Article 2 (SMH) repeats the claim without additional context.
- Article 1 (SMH) includes a quote from McInerney saying he 'offered to my board to stand aside for the duration of the ICAC matter,' while Article 3 (ABC) states he 'will temporarily step aside' without direct quotes.
- Article 1 (SMH) notes that Catholic Schools NSW did not respond to questions about whether Jean-Claude Perrottet would be stood aside, while Article 2 (SMH) does not mention this specific question.
Source Articles
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The federal opposition leader has been criticised by a former NSW minister over his links to a Liberal Party powerbroker.
The Liberal Party powerbroker who dragged Catholic schools into corruption inquiry
Dallas McInerney has headed up Catholic Schools NSW since 2017. The organisation is now embroiled in a corruption inquiry centred around branch-stacking.
Catholic Schools NSW chief to stand aside amid corruption probe
The head of the body governing the state's catholic schools will stand aside after he was named in a corruption probe investigating donations to the NSW Liberal Party.