Reformers, 's--t sheets' and Angus Taylor's denial: The NSW Liberals' ICAC inquiry unpacked

From secret dossiers to "shake downs" and dodgy alleged donations, the first few days of the NSW Independent Commission Against Corruption (ICAC) investigation into the NSW Liberal Party have shone a light on factionalism and lobbying in state politics.

The hearings, which started in Sydney this week, centre on the alleged actions of a religious conservative faction of the NSW Liberal Party between 2019 and 2023.

The first few days of evidence have featured a cast of figures — from disgraced property developer Jean Nassif to the brother of former Liberal premier Dominic Perrottet.

Not even federal Opposition leader Angus Taylor could escape the net of the hearings, with his name appearing in messages alleging he was solicited for undisclosed donations — which Taylor denies, and he is not under investigation for.

It's not the first time the state's anti-corruption watchdog has investigated the actions of political parties, with ICAC ruling in 2023 that former Liberal premier Gladys Berejiklian engaged in "serious corrupt conduct" during her relationship with former MP Daryl Maguire.

So what have we learned so far?

What is Operation Rosny?

Operation Rosny is investigating a series of allegations that could constitute offences under the Electoral Funding Act 2018 (NSW) and potential corrupt conduct involving a right-wing faction of the NSW Liberal Party.

The investigations centre on allegations of branch-stacking — whether undisclosed and prohibited political donations were used to recruit and advance certain members of the Liberal Party.

There are three key allegations that will be explored — one of which is whether the prohibited donor Jean Nassif made undisclosed donations to damage the career of former NSW minister for transport and veterans, David Elliot.

Nassif may be a name familiar to many Sydneysiders. His defunct company, Toplace, is responsible for more than 20 apartment blocks with major structural defects, including Canterbury’s Vicinity apartments and Skyview in Castle Hill.

Toplace went into liquidation in 2023, and it's understood Nassif now lives in Lebanon.

It's alleged his donations were facilitated by a faction of the NSW Liberal Party called the "Reformers".

Who are the 'Reformers'?

The 'Reformers' are a secret faction of young, conservative Christians who, it's alleged, sought to increase their numbers in the Liberal Party via undisclosed donations and corrupt conduct.

Messages tendered in evidence showed they wanted to promote conservative stances on issues such as abortion and euthanasia.

Key members include Dallas McInerney, who was CEO of Catholic Schools NSW until he was suspended in early July ahead of the investigation's launch. The brothers of former NSW premier Dominic Perrottet, Charles and Jean-Claude Perrottet, have also been named.

Jean-Claude allegedly fled to Fiji when called to appear as a witness during a 2023 parliamentary inquiry examining similar claims to those before the corruption watchdog.

This time, texts between him and Jeremy Greenwood, a lobbyist for Catholic Schools NSW and fellow Reformer, were read out.

So far, we've heard from key Reformer Dylan Whitelaw, a former Liberal staffer who the inquiry heard allegedly prepared a dossier of damaging information against Elliott.

Who is caught up in the 's---t sheet'?

One of the most explosive allegations of the hearings so far involves a Word document dossier, titled "David Elliott s---t sheet.docx", accusing Elliott of having an affair.

Elliott, a former minister of the Perrottet government who retired from politics in 2023, was a factional rival of the Reformers in the Liberal Party.

Elliott rejected the accusations made by the "religious right of the Liberal Party", saying in a statement to Nine newspapers: "As most of Sydney knows, I'm a devoted husband of 30 years to a beautiful woman who doesn't deserve to be treated like this by the party she has sacrificed so much for."

Under questioning on Wednesday, Whitelaw said he couldn't recall preparing the document but accepted evidence showing his involvement, and the involvement of Greenwood.

The inquiry pursued questions of Whitelaw's awareness as to whether Greenwood was seeking to "damage Mr Elliott's political career" to "further certain interests that Mr Nassif [property developer Jean Nassif] had".

"I was aware they were attempting to damage Mr Elliott's political career, but not because that's what Mr Nassif wanted," Whitelaw told the inquiry.

Why was Angus Taylor mentioned?

The federal Opposition leader is not under investigation by ICAC.

However, on Wednesday, Taylor's name came up in questioning about a series of messages alleging Taylor was solicited by the Reformers for donations in his time as a cabinet minister under then-prime minister Scott Morrison.

A message from McInerney allegedly said in March 2021 that he would "shake down Angus for 10K".

The inquiry then discussed an in-person meeting during which, according to messages between key Reformers, Taylor allegedly agreed to an initial payment of $15,000 followed by a monthly injection of $3,000.

When asked about the messages by the press on Wednesday, Taylor said: "I'm not going to give a running commentary on all of this. I'm not a party to the proceedings. No payment was made."

What happens next?

With an estimated seven weeks of public hearings still to go, we can expect to hear a lot more from this investigation.

One claim raised by counsel assisting Peggy Dwyer in her opening statement — yet to be investigated — alleges Reformers received donations from Nassif for the purpose of removing the inaugural NSW Building Commissioner, an independent office established in 2019 to improve safety and compliance of new property developments.

Another key allegation yet to be investigated involves conduct by councillors from Strathfield Council, a small local government area in Sydney's Inner West, that could constitute blackmail.

The hearings continue on Thursday.

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