The NSW Liberal Party is facing an existential crisis as two separate corruption investigations probe serious allegations of corrupt conduct involving political operatives in Sydney's Hills district. The state's corruption watchdog, the Independent Commission against Corruption (ICAC), has announced hearings into events in the Hills shire in 2022, focusing on illegal donations, branch stacking, and links to a fugitive developer.
ICAC Investigates Hills Shire Allegations
Two weeks ago, ICAC announced it would begin hearings into allegations that a group of young, well-connected Christian men, known as the Reformers, installed their own slate of councillors on Hills shire council during the 2022 local government elections with the assistance of illegal donations. The inquiry will also explore their alleged role in ending the career of sitting state minister David Elliott and attempting to interfere with the duties of the building commissioner, David Chandler.
The Reformers are also alleged to have links to developer Jean Nassif, now a fugitive in Lebanon, and how these may have affected the approval of the Skyview development at Castle Hill. According to former deputy mayor Alan Haselden, Nassif showed him plans for "colossal structures" at Castle Hill in 2018 or 2019, leaving him "stunned."
John Sidoti Faces Trial
In a separate but related matter, former NSW Liberal minister John Sidoti was charged with misconduct in public office and faces trial in coming months. The charges stem from ICAC findings in 2022 that Sidoti engaged in serious corrupt conduct by lobbying councillors on City of Canada Bay council to relax planning controls relating to properties his family owned. Sidoti has said he will fight the charge and clear his name.
Factional Wars Within the Liberal Party
The Hills district has been alive with factional fighting since 2018, not between the usual foes—moderates and conservatives—but between the right and the centre-right. The right draws support from the conservative Catholic community, including elder statesman Damien Tudehope, former premier Dominic Perrottet, and his brothers Jean-Claude and Charlie, who are active party operatives. It is the activities of Jean-Claude and Charlie Perrottet, along with Jeremy Greenwood, Robert Assaf, and Christian Ellis, that are under investigation. There is no suggestion that Dominic Perrottet is under investigation.
The centre-right is loosely aligned with evangelical Christians, including federal MP Alex Hawke, former minister David Elliott, former prime minister Scott Morrison, and former opposition leader Sussan Ley. One centre-right figure told the Guardian he became aware of branch-stacking allegations around 2018, when entire families of developers joined local Liberal branches.
Illegal Donations and Developer Links
ICAC is investigating whether Ellis, Greenwood, Assaf, and the Perrottet brothers solicited or accepted political donations, including from prohibited donors, in amounts that were not declared and exceeded caps. Donations from property developers were banned in NSW following previous scandals. The focus will be on whether they accepted donations from Nassif and whether a quid pro quo was expected or delivered.
As council elections approached, tensions erupted. Popularly elected mayor Michelle Byrne and six sitting Liberal councillors were replaced by the party's state executive without preselection processes, according to Baulkham Hills MP Ray Williams. Charles Perrottet chaired the local government committee on the state executive at the time, and Ellis was on state executive. The councillors were replaced by candidates with links to the Reformers, including Ellis's mother.
Impact on David Elliott and David Chandler
The ICAC inquiry will also examine how branch stacking and factional activities affected David Elliott's career. The former transport minister retired after his seat was abolished and he failed to secure candidacy in Castle Hill branches dominated by the Right. Elliott is expected to give explosive evidence, including allegations about pressure over Nassif's developments and surveillance.
David Chandler, NSW's first building commissioner, was investigating shoddy developments when Toplace executives falsely accused him of requesting a $5 million bribe in 2022. Chandler told a parliamentary inquiry that Toplace executives read from an email saying $5 million would make the building commissioner go away. He offered to go to the police, but the company declined. ICAC is investigating Ellis, Greenwood, and Charles Perrottet for alleged attempts to remove Chandler.
Broader Implications for Integrity
Geoffrey Watson, a director of the Centre for Public Integrity and counsel assisting ICAC in the Obeid investigation, says there will always be "one-off bad guys" who gravitate into politics. He suggests harsh penalties are needed not just for corrupt politicians but also for those making illegal donations. The Hills inquiry may demonstrate that branch stacking corrodes support for mainstream parties. One key question is: who knew what and when? Did senior Liberal figures turn a blind eye? The consequences of looking the other way will be felt for years.
