By Farid Farid in Sydney

A fugitive property developer exchanged messages with the brother of a Liberal premier in a bid to exert political influence, a major corruption inquiry has been told.

The NSW Independent Commission Against Corruption on Monday began examining alleged collusion between developer Jean Nassif and state Liberal Party powerbrokers, including the brothers of former premier Dominic Perrottet.

In a probe dubbed Operation Rosny, the watchdog is investigating if political donations from Nassif and his development company Toplace were taken between 2020 and 2023 in return for favourable outcomes.

Political donations from developers have been banned in NSW since 2009.

Counsel assisting the commission Peggy Dwyer SC began her opening statement with a bold adage.

“Money in politics, as in other spheres of life, has the potential to corrupt,” she said.

“Big spending participants can … drown out smaller players and new entrants, potentially undermining the democracy we take for granted in NSW.”

Persons of interest were “setting up companies in the name of spouses to hide the money trail, creating bogus invoices and the use of encrypted messaging”, she said.

Dr Dwyer presented three main allegations of branch-stacking among Liberal Party powerbrokers dating back to 2019 to 2023, naming several people allegedly involved in circumventing political donations caps.

The right faction of the state Liberals, known as the Reformers, was identified as being pivotal in the various schemes.

They included, most prominently, Jean-Claude Perrottet and Charles Perrottet, whose older brother Dominic became premier in October 2021.

“NSW Police advised the commission … Charles Perrottet may have used his position within the Liberal Party to benefit the business interests of Nasif,” the commission heard.

Jean-Claude Perrottet 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.

Dr Dwyer said tarnished political donations may undermine a “system of government that we take for granted”, ultimately damaging people’s faith in democracy.

Dominic Perrottet, whose party was defeated at the March 2023 election, has not been accused of any wrongdoing.

Undeclared donations allegedly arranged by factional figures such as former Catholic Schools NSW chief executive Dallas McInerney between 2019 and 2023 are also being scrutinised.

Another person of interest is hotelier Michael O’Hara, the first witness to give evidence on Monday in the eight-week inquiry chaired by ICAC assistant commissioner Fabian Gleeson.

The investigation was sparked when state Liberal MP Ray Williams used parliamentary privilege in 2022 to claim party powerbrokers were branch-stacking at Hills Shire Council in northwest Sydney.

The initial claims led to a parliamentary inquiry in 2023 that engaged professional process servers to search for Jean-Claude and Charles Perrottet without success.

Nassif was alleged to have drawn on his political connections through donations to facilitate favourable planning decisions.

“Some … were happy to take Mr Nassif’s money in return for taking or promising actions that were mutually beneficial,” Dr Dwyer said.

These actions allegedly included seeking to damage the reputation of former transport minister David Elliott and to remove then-building commissioner David Chandler.

Nassif is being pursued by NSW Police after a two-year fraud investigation and is thought to be in Lebanon.

A warrant has been issued for his arrest, while 57 companies linked with Toplace are in administration.

“We expect the commission may see the confluence of personal greed and political ambitions,” Dr Dwyer said.

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