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Australian Liberal Party Rocked by 'Sham' Payments and Branch Stacking Inquiry

Australia's anti-corruption watchdog has launched a public inquiry into allegations of illegal donations, branch stacking, and political interference within the New South Wales Liberal Party. Secret tape recordings reportedly reveal a developer boasting of influence and attempts to manipulate political outcomes.

  • The New South Wales Independent Commission Against Corruption (ICAC) has commenced a public inquiry, codenamed Operation Rosny.
  • Allegations include a developer making 'sham' payments to Liberal operatives to circumvent donation laws and gain political influence.
  • Secret tape recordings reportedly capture a developer discussing the manipulation of preselections and the removal of officials.
  • The inquiry is examining an alleged branch stacking operation by a group known as 'the Reformers' aimed at influencing the Liberal Party's direction.
  • Prominent Liberal figures, including former Prime Minister Tony Abbott and former NSW Premier Dominic Perrottet's brothers, have been mentioned in connection with the inquiry.

A major public inquiry has been launched by Australia's anti-corruption watchdog, the New South Wales Independent Commission Against Corruption (ICAC), into a web of allegations involving illegal political donations, branch stacking, and interference in preselection processes within the state's Liberal Party. The inquiry, known as Operation Rosny, began its public hearings on Monday, 20 July 2026, and has already heard explosive claims that paint a picture of deep-seated ideological conflict and alleged financial impropriety.

Central to the allegations are secret tape recordings, some reportedly from September 2021, featuring developer Jean Nassif, who is now understood to be a fugitive in Lebanon. Counsel assisting ICAC, Dr Peggy Dwyer SC, presented details from these recordings, which allegedly capture Nassif boasting about his influence over the state government and his ability to 'take' a state politician's seat, effectively ending their career. The inquiry also heard claims that Nassif intended to 'fuck sideways' the state's building commissioner, David Chandler, who was reportedly an obstacle to his interests. Shortly after one such recorded call, the Baulkham Hills MP David Elliott lost his preselection, and the minister responsible for the building commissioner, Kevin Anderson, was replaced, leading to Chandler's resignation under pressure.

Dr Dwyer detailed how Nassif allegedly channelled millions of pounds to a group of Liberal operatives known as 'the Reformers', who were purportedly engaged as consultants. These payments, alleged to be 'sham' payments, were made between 2019 and 2022 and are suspected of being illegal donations designed to bypass electoral funding laws, including donation caps or prohibitions on donations from developers and the liquor and gaming industries. The Reformers allegedly used these funds to run a large-scale branch stacking operation, aiming to seize control of the Liberal Party and promote their conservative agenda, while simultaneously delivering outcomes favourable to their benefactor.

The inquiry has heard staggering alleged amounts involved: £2 million from Nassif, over £250,000 from the Catholic Schools Association, and £125,000 from lawyer-turned-publican Michael O’Hara. O’Hara is also the former law partner of right-wing Liberal powerbroker and upper house MP, Damien Tudehope, who has since stepped down from the frontbench after being called as a witness. The Reformers reportedly included Jean-Claude and Charles Perrottet, brothers of former NSW Premier Dominic Perrottet, along with public relations firm principals Christian Ellis and Jeremy Greenwood.

ICAC's evidence is said to include a substantial trove of decrypted encrypted messages between the young men at the centre of the investigation, along with details of fundraisers hosted by the Reformers. These events reportedly featured high-profile Liberal Party members as speakers, including Tudehope, former Prime Minister Tony Abbott, and prominent media personality Alan Jones. Dr Dwyer emphasised that these are currently allegations, not proven facts, and it will be up to ICAC Commissioner Fabian Gleeson SC to determine the nature of the payments and the intentions of those involved. The inquiry highlights a significant internal ideological struggle within the Liberal Party, raising concerns about the integrity of democratic processes and candidate selection.

Why this matters: While geographically distant, this inquiry into political corruption in a major Western democracy underscores the importance of transparent political funding and selection processes globally, including in the UK.

What this means for you: This story serves as a reminder of the ongoing scrutiny into political funding and ethical conduct, reinforcing the need for robust regulatory bodies to maintain public trust in democratic institutions.

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