Icac hears of alleged Liberal push for MPs' public money

A former member of the NSW Liberal faction known as the Reformers told the state's corruption watchdog on Wednesday that he warned a party MP against handing over publicly funded communications money to a fellow faction member, as the inquiry examines allegations of improper ties to a fugitive property developer.

Operation Rosny: a widening investigation

The evidence, given by Robert Assaf at the Independent Commission Against Corruption (Icac), forms part of Operation Rosny. The inquiry is investigating whether Liberal figures, including Christian Ellis, solicited or accepted donations from developer Jean Nassif between 2020 and 2023 in exchange for pursuing outcomes sought by Nassif. Nassif, wanted by New South Wales police, has been the subject of intense scrutiny over his business dealings and political connections.

The Reformers, a conservative faction within the NSW Liberal Party, has been at the centre of the probe. Assaf, a founding member, has been detailing his growing disillusionment with Ellis, a former friend and colleague.

Distrust over fees and links

Assaf told counsel assisting Peggy Dwyer SC that his relationship with Ellis deteriorated over the payment of a 10 per cent finder's fee to Assaf for introducing new clients to Beckington, a lobbying company. Last week, he testified that the Reformers became concerned Ellis was "getting rich" from payments to the group. On Wednesday, he elaborated on those concerns, explaining how the finder's fee arrangement contributed to his distrust.

He also described being increasingly wary of Ellis's friendship with Nassif, which he saw as a potential liability for the faction. The tension came to a head when Assaf heard that Ellis might be approaching MPs to "hit up" their communications budgets. These budgets, provided by parliament for official duties, are meant to serve constituents, not factional or personal interests. Assaf said he was concerned that public money could be misused.

Talking to Lou Amato

Assaf recounted that he spoke to Lou Amato, a former Liberal MP in the NSW upper house, and advised him not to give his communications budget to Ellis. Under questioning, Assaf clarified that he did not believe the money was intended for the Reformers. "I don't know what he was going to do with it. I just didn't want to know," he said, adding that he simply wanted to distance himself from the situation.

The exchange reveals the unease within the faction about Ellis's methods. Assaf's testimony also highlighted the delicate balance between loyalty to a faction and concerns about propriety. His decision to warn Amato suggests he saw a real risk that public funds could be diverted to improper purposes.

What the inquiry could mean

Icac's investigation into Operation Rosny has already exposed tensions inside the NSW Liberal Party and its relationship with lobbyists and developers. The allegations involving Nassif, who has been linked to a series of major property projects, raise questions about the influence of money in politics.

For the Reformers, the testimony may further strain internal relationships. Assaf's evidence could prompt other witnesses to come forward, and the commission may eventually call Ellis or Nassif to testify, though Nassif's fugitive status complicates matters.

The inquiry's findings, when delivered, could lead to criminal charges or political fallout. They may also prompt calls for tighter regulation of political donations and the use of parliamentary budgets. As the hearings continue, observers will be watching to see whether the allegations are substantiated and what consequences follow.