A hotelier who made prohibited donations to the NSW Liberal 'Reformers' has told the Icac he is disgusted by the scheme and stopped funding after deciding Scott Morrison and Dominic Perrottet had 'gone woke'. The Independent Commission Against Corruption (Icac) is hearing evidence that a group of young Liberal powerbrokers solicited illegal donations to support branch stacking and move the party to the conservative right.
What the Icac Hearing Revealed
The second day of Operation Rosny saw hotelier Michael O'Hara testify about payments totaling $165,000 between 2018 and 2023. O'Hara, barred from political donations due to his liquor industry ties, allegedly paid funds to registered lobbyist Beckington and a company controlled by Jean-Claude Perrottet, brother of the former premier. The payments were disguised as financial advice or consulting services.
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In her opening statement, counsel assisting Peggy Dwyer SC said the evidence would show the 'Reformers' anticipated receiving $2 million from fugitive property developer Jean Nassif in exchange for outcomes sought by him. O'Hara expressed shock: "After what I heard yesterday and what I read in the newspapers … I am absolutely astounded by where it all ended up, which I had absolutely no knowledge of. I’m disgusted."
Comparison of Key Donations and Allegations
| Entity | Amount | Period | Purpose (Alleged) |
|---|---|---|---|
| Beckington (via Christian Ellis) | $100,000 | 2018-2020 | Branch stacking & consulting fees |
| Jean-Claude Perrottet's company | $65,000 | 2020-2023 | Branch stacking & advisory services |
| Anticipated from Jean Nassif | $2,000,000 | 2021-2022 | Undisclosed outcomes for developer |
Why the Hotelier Stopped Funding
O'Hara told the inquiry he cut off support in 2021 after conversations with now NSW shadow attorney general Damien Tudehope. He became concerned about the group's anti-vaccination stance and their characterization of Morrison and Perrottet as 'gone woke'. O'Hara said he "made a mistake" supporting the 'Reformers' and believed his funds were being used for legitimate political lobbying, not illegal branch stacking.
Key Takeaways from the Hearing
- Prohibited donations: O'Hara, due to liquor license ownership, was banned from making political donations but allegedly funneled money through service contracts.
- Branch stacking effort: The 'Reformers' aimed to wrest control of Liberal branches and shift the party to the right.
- Fugitive developer link: Jean Nassif, wanted in Australia, was allegedly promised $2 million for favorable outcomes.
- Icac investigation: Operation Rosny continues to probe corruption within the NSW Liberal Party.
- Public disgust: O'Hara's testimony underscores potential voter trust erosion in political funding systems.
Implications for NSW Politics
The revelations could damage the Liberal Party's standing ahead of the next state election. The involvement of a prominent hotelier and a fugitive developer raises questions about the integrity of party financing. Dominic Perrottet, who resigned as premier in 2023, has not been directly implicated, but his brother's company is under scrutiny.
FAQ
What is Icac and why is it investigating the NSW Liberal Party?
Icac is the Independent Commission Against Corruption, an oversight body that investigates allegations of corrupt conduct in NSW government and politics. Operation Rosny is examining whether the 'Reformers' group solicited illegal donations to branch stack and influence party direction.
Who are the 'Reformers' in the Liberal Party?
The 'Reformers' are a group of young Liberal powerbrokers allegedly aiming to move the party to the conservative right through branch stacking and internal manipulation. They include figures like Christian Ellis and are linked to the Perrottet family.
Why did the hotelier stop funding the 'Reformers'?
Michael O'Hara said he stopped funding after 2021 because he disagreed with the group's anti-vaccination stance and their labeling of Morrison and Perrottet as 'gone woke'. He claimed he had no knowledge of the illegal donation scheme and felt disgusted by the revelations.
The Icac hearings are ongoing, with further witnesses expected to testify. The outcome could lead to criminal charges and tighter regulations on political donations in New South Wales.
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