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The New South Wales corruption watchdog has heard that funds intended for a right-wing Liberal Party faction were used to pay for a bucks party, as part of an inquiry into alleged political donations and branch-stacking.

The Independent Commission Against Corruption (ICAC) is investigating whether people linked to the NSW Liberal Party solicited funds from prohibited donors and other sources to advance the interests of the NSW Reformers, a conservative Christian factional group.

Coverage comparison

Two news organisations provided coverage of the inquiry. ABC Australia reported on the testimony of hotelier Michael O'Hara, who was the first key witness in the Operation Rosny inquiry, and separately on the evidence of Robert Assaf, a co-founder of the NSW Reformers. The Guardian — World focused on the broader context of the inquiry, including the support of senior NSW Liberal politicians for the group's work.

Key claims

Hotelier Michael O'Hara told the ICAC that key figures being investigated "obviously went off the track," according to ABC Australia. He said he made a "mistake" trusting the key figures at the centre of the investigation. O'Hara, who is a prohibited donor, is being examined over whether he made political donations "in amounts that were not declared and exceeded applicable donation caps."

It is alleged he used a company called Paslibdan Pty Ltd to make the donations, disguised as consultancy payments, to help stack the Liberal Party with conservative members. O'Hara said he was "absolutely astounded" and "disgusted" by the allegations aired at the commission.

Robert Assaf, a co-founder of the NSW Reformers, described members as "immature and young" at the time, according to ABC Australia. He said they treated the money for NSW Reformers as an advance for personal expenses, intending to pay it back. Under questioning from Counsel Assisting Peggy Dwyer SC, Assaf was questioned over "fake invoices" and the movement of money through a lobbying firm, Beckington, established by lobbyists Christian Ellis and Jeremy Greenwood.

Assaf told the inquiry that payments from hotelier Michael O'Hara were routed through the company as part of a "tricky" tax arrangement rather than to conceal unlawful political donations. When asked if he was suggesting there was a conversation about creating "fake invoices" so O'Hara could get a tax deduction, he instead described it as "some tax excuse."

Assaf also said he could not recall whether the NSW Reformers money was used for his own bucks party or that of fellow NSW Reformers figure Christian Ellis, but claimed it may have been cancelled due to the COVID-19 pandemic. "I think we booked a venue for either my bucks or Christian's bucks. It required an up-front payment," he said.

The Guardian reported that the ICAC began its Operation Rosny hearings on Monday, investigating three allegations, including that Liberal figures "solicited or accepted" donations, including from prohibited donors, in amounts which were undeclared or exceeded caps, to recruit or renew members to the party – a practice known as "branch stacking."

In her opening statement, Counsel Assisting Peggy Dwyer SC said this "core group" of young Liberal staffers and lobbyists who called themselves the "Reformers" included lobbyist Christian Ellis, consultant Robert Assaf, and Jean-Claude Perrottet, the younger brother of former Liberal premier Dominic Perrottet. Another man, lobbyist Jeremy Greenwood, allegedly facilitated the Reformers' receipt of funds.

Dwyer said evidence would show "a number of senior politicians in the NSW Liberal party supported the work of the Reformers, including by speaking at their events or otherwise facilitating the work they did in recruiting and renewal for branches." She said the group hosted recruitment functions at which special guests, including former Liberal prime minister Tony Abbott, broadcaster Alan Jones, and Catholic Schools NSW chief executive Dallas McInerney, spoke on "conservative and/or religious issues."

She said a document made when Ellis was a staffer in the office of federal Nationals senator Matt Canavan "set out the mission of the NSW Reformers as, I quote: 'taking back our nation through good government'." The document proposed recruiting 5,000 Christian conservatives to join NSW Liberal party branches, "and thereby take control of the N[ational]..."

The Guardian also reported allegations of prohibited donations made by fugitive property developer Jean Nassif and his company Toplace, as part of the inquiry.

The inquiry continues.