The New South Wales Independent Commission Against Corruption (ICAC) has launched a high-profile inquiry into allegations involving members of the NSW Liberal Party, drawing attention to issues of political donations and branch stacking. The public investigation, part of Operation Rosny, is scheduled to commence on July 27 and is expected to run for eight weeks.

Central to the inquiry are claims that Dallas McInerney, the head of Catholic Schools NSW and a prominent figure in the NSW Liberal Right faction, arranged and approved illegal donations from Catholic Schools NSW to support Liberal branch stacking efforts. McInerney, who has stated he welcomes the opportunity to clear his name, is also acknowledged as a key ally of federal Liberal leader Angus Taylor, though there is no indication Taylor is directly involved in the matters under investigation.

The inquiry will also examine whether a subgroup within the Liberal Party, referred to as the “Reformers,” solicited and accepted funds from prohibited donors, including Jean Nassif, a fugitive property developer. Allegations suggest these donations were aimed at influencing internal party dynamics and political outcomes, possibly including efforts to undermine a sitting member of parliament and to orchestrate the removal of NSW Building Commissioner David Chandler from his position.

In addition to these focal points, the investigation will scrutinize allegations against Karen Pensabene related to potential blackmail and breaches of the Surveillance Devices Act. Pensabene’s and Mr. Maheswaran’s—who previously acted as a lawyer for Toplace—names have emerged in the context of these probes.

The inquiry has significant political ramifications as it unfolds on the eve of an election, posing challenges for NSW Liberal leader Kellie Sloane and federal Liberal leader Angus Taylor. Sloane has called on party officials to suspend any members under investigation pending the outcome of the inquiry. Premier Chris Minns has also weighed in, requesting the suspension of Labor members Maheswaran and Pensabene due to the allegations, while Treasurer Daniel Mookhey expressed support for a robust ICAC process without offering detailed commentary.

None of the individuals named have been charged with any criminal offenses, and all allegations remain unproven. The Liberal Party has refrained from detailed public comments, citing the active nature of the ICAC investigation. Meanwhile, some political figures have urged swift action within the Liberal Party to expel those implicated.

As the inquiry proceeds, its findings are expected to shed light on the inner workings of political donations, factional disputes, and lobbying practices within the NSW Liberal Party, an issue observers note has long contributed to public cynicism towards politicians. Observers suggest the current revelations may represent only an initial phase of a broader investigation.