What's Going On With the NSW Liberal Party and the Corruption Watchdog?

On Monday 27 July 2026, a powerful anti-corruption body in New South Wales called ICAC (the Independent Commission Against Corruption) started eight weeks of public hearings into the NSW Liberal Party. The investigation, called Operation Rosny, is looking into whether people connected to the party took in illegal donations — money given to a political party in ways that break the law — and used that money to manipulate who gets to be a party member.
What Is Branch-Stacking?
Political parties have local groups called branches. Each branch gets a say in who the party picks to run for parliament. Branch-stacking is when someone signs up large numbers of new members — sometimes paying their fees for them — to flood a branch with supporters and control its decisions. It is illegal in NSW when it involves prohibited donations or dishonest arrangements.
What ICAC Is Investigating
Operation Rosny is looking into three main things. First, whether Liberal Party figures took donations from people who are banned from giving to political parties, or donations that exceeded the legal limit, or donations that were never declared. Second, whether companies were set up to move that money around. Third, whether senior Liberal politicians helped the effort by speaking at events and giving the group access to party machinery.
The "Reformers"
At the centre of the investigation is a factional group called the "Reformers." It was led by lobbyist Christian Ellis, consultant Robert Assaf, and Jean-Claude Perrottet, the younger brother of former NSW premier Dominic Perrottet. According to counsel assisting Peggy Dwyer SC, the Reformers tried to build up a bloc of Christian conservative members to take control of the NSW Liberal Party. A document from Ellis's time working for Senator Matt Canavan proposed recruiting 5,000 Christian conservatives into Liberal branches to achieve this. Lobbyist Jeremy Greenwood allegedly acted as a financial go-between for the group.
The Companies Involved
ICAC is looking at several companies. One, called Beckington, was set up by Greenwood and Ellis and allegedly collected illegal donations for branch-stacking. Catholic Schools NSW became Beckington's first client. Its CEO, Dallas McInerney, allegedly arranged and approved the payments. Dwyer told the hearing that the money Catholic Schools NSW paid to Beckington was for a "sham" — meaning no real services were provided in return. Catholic Schools NSW paid $130,900 to Beckington over two years, then another $135,000 to Greenwood's company JPG Advisory between 2021 and 2023. JPG Advisory is still listed as an active lobbyist on government registers.
Hotelier Michael O'Hara is a prohibited donor under NSW electoral law, meaning he is not allowed to donate to political parties. ICAC alleges he got around this by having his company, Paslibdan Pty Ltd, make the donations on his behalf.
Big Names at Reformer Events
The Reformers held recruitment events with well-known speakers, including former prime minister Tony Abbott, broadcaster Alan Jones, and Dallas McInerney. They spoke about conservative and religious issues. Senior NSW Liberal politicians helped the Reformers by speaking at these events and supporting their branch recruitment work. Tony Abbott, Alan Jones, and Matt Canavan are not accused of any wrongdoing.
The investigation also covers fugitive property developer Jean Nassif's connections to political powerbrokers and local councils. Five NSW Liberal MPs backed a factional deal that is now part of the corruption probe. Former NSW Liberal MP Ray Williams sent text messages to then-premier Gladys Berejiklian warning her about the scandal that became Operation Rosny.
McInerney stepped down from his role as CEO of Catholic Schools NSW on 2 July 2026 after being named in connection with the investigation. ICAC had issued its public notice about Operation Rosny on 1 July 2026.
Why This Matters
The scope of Operation Rosny is wide. It covers a factional network built around religious conservative recruitment, companies allegedly used to funnel illegal donations, a lobbyist still registered to influence government, and a property developer with political ties reaching into local councils. When the commission's counsel assisting described the Catholic Schools NSW payments as sham retainers in her opening statement, it signalled that a key question will be whether any real work was done for the money — or whether these consultancy deals were just a way to disguise political donations.
For the NSW Liberal Party, this is not the first time ICAC has cast a spotlight on the division. The naming of Jean-Claude Perrottet, the brother of a recent premier, and the alleged involvement of sitting MPs in helping the Reformers will test how the party handles discipline internally. Eight weeks of public hearings, with witnesses giving evidence under oath, will bring out documents and testimony that could go beyond the three formal allegations and raise broader questions about the party's culture around rules and compliance. The hearings are being livestreamed, so the public can watch the evidence unfold in real time.


