On 4 August 2026, a senior NSW Liberal politician named Damien Tudehope appeared before the Independent Commission Against Corruption, or ICAC. ICAC is a government body that investigates serious misconduct by public officials. Tudehope was asked about a 2018 message from his former staffer Jean-Claude Perrottet that said "Scott and Damien are afraid" (The Guardian).

The investigation is called Operation Rosny. It is looking into whether a group within the Liberal Party called the Reformers broke the law in two ways. First, by getting people to sign up as party members using money from illegal sources, a practice known as "branch stacking." The idea is that if you sign up enough members who support your group, you can control who the party picks as its candidates for elections. Second, by taking donations from people who are legally banned from giving money to political parties. Public hearings began on 27 July 2026, led by lawyer Peggy Dwyer SC (ICAC).

Jean-Claude Perrottet is the younger brother of Dominic Perrottet, who was the premier of NSW. Jean-Claude worked in Tudehope's office from 2017 to 2019 (ICAC). During questioning, Tudehope said Jean-Claude had a "talent" for recruiting new Liberal Party members. Tudehope also admitted he had spoken at several Reformers events, calling himself "a warrior for social issues for the party." The Reformers wanted the Liberal Party to take more conservative positions on issues like same-sex marriage, abortion, and euthanasia.

Tudehope said "Scott" in the 2018 message was the former head of his electorate office. He told the commission he did not remember raising concerns about Jean-Claude possibly using his government-paid work hours to recruit Liberal members. But Tudehope's chief of staff "blew up" after reading a newspaper article saying staffers were using their government work hours for party recruitment work, which would break the rules of their employment. A Reformers member named Christian Ellis worked in Tudehope's ministerial office for three months before being fired in July 2019. Tudehope said the newspaper article was "probably the precipitating event" for Ellis being let go.

Money was a major focus of the questioning. Tudehope was shown evidence of a bank transfer and messages where Jean-Claude wrote "Damien" paid for a venue and "Damien got it," suggesting Tudehope contributed $5,000 toward a Reformers table at a faction event. Tudehope admitted he may have made payments to the Reformers. Separately, Tudehope's former business partner, hotel owner Michael O'Hara, is alleged to have donated money to the Reformers. In NSW, people involved in the liquor and gambling industries are banned from making political donations because there is a risk they could try to buy influence over decisions that affect their businesses. Tudehope admitted he had introduced two Reformers members to O'Hara and knew O'Hara was "generous" and likely to support their work financially.

The inquiry also heard that Jean-Claude Perrottet allegedly asked a businessman to contribute $50,000 toward a campaign to remove federal MP Alex Hawke from his parliamentary seat (The Saturday Paper). A transcript from 28 July 2026 shows that James Tudehope knew Robert Assaf was doing Reformers work during work hours (ICAC).

Tudehope stepped aside from his opposition frontbench roles while the inquiry is running. He is not named in any allegations and is not accused of doing anything wrong. Dominic Perrottet has not been accused of wrongdoing either, and Jean-Claude Perrottet has previously denied any wrongdoing. The commission had originally changed its plans and was not expecting to hear from Tudehope at all, as the hearings were wrapping up early, but he ended up giving evidence on 4 August (SMH). Jean-Claude Perrottet is scheduled to appear as a witness on 5 August (ICAC witness list).

The broader context here is about pressure on the NSW Liberal Party's internal power structures. Operation Rosny is looking at two main concerns: whether staff whose salaries are paid by taxpayers were doing party work instead of their government jobs, and whether people who are banned from donating to politicians found a way around the rules through factional networks. The ban on liquor and gambling industry donations exists because those industries are seen as vulnerable to influence-peddling, meaning donors might give money hoping for favorable treatment on laws or licenses. O'Hara's alleged donations fall right into that category.

What gives this hearing its political weight is the Perrottet name. Jean-Claude is close to both his brother, the former premier, and to Tudehope, who is a senior figure in the current opposition team. That means whatever ICAC finds could have consequences beyond the people directly under investigation. Tudehope's own admissions placed him at the meeting point of the Reformers' recruitment efforts, their financing, and the hiring of faction members into government-paid roles. Whether that adds up to corruption, poor judgment, or just how factional politics normally works is the question ICAC has to answer.