Lead

The co-founder of a conservative faction within the New South Wales Liberal Party has told a corruption inquiry he did not believe electoral funding laws applied to the group's activities. Robert Assaf, co-founder of the NSW Reformers, made the admission during the Independent Commission Against Corruption (ICAC) inquiry, which is examining alleged breaches of state electoral funding laws and possible corrupt conduct.

Assaf told the inquiry on Thursday he "just didn't think the law applied" to the NSW Reformers because he viewed the group as an internal faction rather than a political organisation, as reported by ABC Australia. Counsel Assisting the Commission, Peggy Dwyer SC, responded that "ignorance of the law is no excuse," noting Assaf's lengthy political experience, including working for federal MPs and serving as a branch president.

The inquiry, codenamed Operation Rosny, is investigating allegations of unlawful political donations, including whether banned donations were concealed through third parties or companies, and whether they were used to recruit or renew NSW Liberal Party members.

Coverage Comparison

The ICAC inquiry has drawn extensive coverage from ABC Australia and The Guardian, with each outlet focusing on different aspects of the hearings. ABC Australia's reporting has centered on the evidence of key witnesses, including Assaf's admission about the law, former NSW Liberal minister Damien Tudehope's denial of knowledge about potential breaches, and allegations involving fugitive developer Jean Nassif.

The Guardian's coverage has highlighted the testimony of hotelier Michael O'Hara, who told the inquiry he was "disgusted" by the scheme and had "made a mistake" supporting the NSW Reformers. The outlet also reported on O'Hara's admissions about payments to a lobbying firm and a company controlled by a brother of former premier Dominic Perrottet.

Both outlets have reported on the central allegations: that the NSW Reformers solicited donations from prohibited donors, disguised them as consultancy payments, and used the funds to support branch-stacking efforts to move the Liberal Party to the conservative right.

Key Claims

  • The NSW Independent Commission Against Corruption (ICAC) is investigating alleged breaches of state electoral funding laws and possible corrupt conduct.
  • Fugitive developer Jean Nassif allegedly sought to use former NSW premier Dominic Perrottet's brothers to influence government decisions, according to Counsel Assisting Peggy Dwyer SC's opening statement.
  • Electoral funding laws play a vital role in minimising the risk of corruption by ensuring transparency and attempting to level the playing field, as stated by Dwyer.
  • The NSW Reformers aimed to recruit 5,000 Christian conservatives to take control of the NSW division of the Liberal Party.
  • Hotelier Michael O'Hara made payments to registered lobbyist Beckington, founded by Reformers member Christian Ellis, and to a company controlled by Jean-Claude Perrottet.
  • Former NSW Liberal minister Damien Tudehope denied knowing donations from his friend and hotelier Michael O'Hara could have breached the state's electoral funding laws.

Perspectives

Robert Assaf (NSW Reformers co-founder)

Assaf told the ICAC he did not believe the law governing political fundraising applied to the NSW Reformers because he considered the group an internal faction, not a political organisation. He later conceded he was aware that a financial arrangement between Michael O'Hara and Christian Ellis's lobbying firm Beckington was intended to fund the work of the NSW Reformers.

Peggy Dwyer SC (Counsel Assisting the Commission)

Dwyer told the inquiry that electoral funding laws played a "vital role in minimising the risk of corruption" and that "ignorance of the law is no excuse." She described an arrangement involving O'Hara's payments as "bogus," suggesting it was designed to hide the fact that O'Hara was donating directly to the Reformers.

Michael O'Hara (Hotelier and witness)

O'Hara told the ICAC he was "absolutely astounded" and "disgusted" by where the scheme ended up, saying he had "no knowledge" of the broader outcomes. He admitted making payments to Beckington and to a company controlled by Jean-Claude Perrottet, under the guise of financial advice or consulting services, to support branch-stacking efforts in NSW Liberal branches.

Damien Tudehope (Former NSW Liberal minister)

Tudehope denied knowing that donations from O'Hara could have breached electoral funding laws, saying he did not believe O'Hara's payments were political donations. He said he would never have exposed his friend to legal risk if he had believed the payments were donations. Tudehope has not been accused of any wrongdoing but quit the opposition frontbench after being called as a witness.