The short version
- Lobbyist Jeremy Greenwood admitted to receiving payments from a Liberal faction member that were funded by contracts with Catholic Schools NSW.
- Greenwood disputed the legality of the arrangement, describing fake invoices as internal processing tools rather than evidence of fraud.
- The inquiry is examining whether these financial flows constituted prohibited donations used to stack party branches with conservative members.
An anti-corruption inquiry in New South Wales has heard testimony suggesting that members of a conservative faction within the Liberal Party received illicit payments derived from contracts held by a lobbying firm. The Independent Commission Against Corruption, conducting Operation Rosny, is investigating allegations that the Reformers group solicited or accepted banned donations to recruit new party members, a practice known as branch stacking. While branch stacking itself is not illegal, the inquiry focuses on whether funds were improperly diverted to support this recruitment drive under the guise of legitimate consultancy services.
Jeremy Greenwood, a lobbyist and consultant, provided evidence regarding his role in securing and managing contracts for Catholic Schools NSW, the governing body for more than 600 schools in the state. The inquiry heard that Greenwood’s firm, JPG Advisory, received payments from the school authority, which is largely funded by federal and state government money. Investigators allege that a portion of these funds was passed on to Reformers members, including former premier Jean-Claude Perrottet and Robert Assaf, as kickbacks rather than payment for actual work performed.
During questioning, Greenwood acknowledged an agreement with Perrottet to split the monthly retainer from the Catholic Schools NSW contract. He admitted that Perrottet did not perform any consulting work for the school authority after the deal was secured. When asked about invoices submitted by Perrottet that appeared to document non-existent services, Greenwood stated he had no issue with them because they were part of a pre-arranged commission structure. He characterized these documents as internal records necessary for processing payments, dismissing concerns about their accuracy.
The commissioner and counsel assisting pressed Greenwood on the nature of these transactions, highlighting emails in which he discussed missing invoices with Dallas McInerney, the CEO of Catholic Schools NSW. In one exchange, Greenwood responded to a query about unpaid bills by stating he had stopped sending them, adding a laughing emoji. Counsel suggested this indicated the money was not intended for genuine consultancy but rather to fund political activities. Greenwood rejected this characterization, maintaining that legitimate work was performed by his firm.
Testimony also revealed informal communications between Greenwood and Perrottet that investigators described as indicative of a corrupt arrangement. In WhatsApp messages, Greenwood referenced providing Perrottet with money from schools while complaining about the politician’s behavior. Perrottet reportedly advised against putting such comments in writing, to which Greenwood replied that the messages would delete themselves. Although Perrottet deleted the chat history, Greenwood retained copies, claiming uncertainty about how the application functioned.
Greenwood defended his conduct during the hearing, describing the contentious messages as jokes intended to provoke a reaction from Perrottet rather than evidence of wrongdoing. He insisted that the financial arrangements were transparent between the parties involved and did not constitute illegal activity. However, the inquiry continues to examine whether these payments violated electoral funding laws by disguising political donations as commercial services. The distinction between legitimate lobbying fees and prohibited political contributions remains a central issue in the investigation.
The scope of the inquiry extends beyond Greenwood’s actions to include the role of Catholic Schools NSW leadership. Dallas McInerney, who approved the consultancy contracts, is scheduled to testify later in the week. Investigators have presented evidence suggesting McInerney was aware of the factional dynamics at play, including a message in which he discussed extracting funds from federal opposition leader Angus Taylor. Taylor has denied making any payments and has not been named in the formal allegations.
The Reformers faction sought to influence Liberal Party policy on social issues such as same-sex marriage, abortion, and euthanasia by increasing its membership base. The inquiry aims to determine whether public funds allocated to Catholic schools were misused to facilitate this political objective. If proven, these actions could represent a significant breach of trust involving taxpayer money and electoral integrity. The outcome may have broader implications for how lobbying contracts are monitored and regulated in the state.
As the hearing progresses, investigators are piecing together a timeline of financial transactions and communications between lobbyists, politicians, and school administrators. The case highlights tensions between private lobbying interests and public accountability, particularly when government-funded entities are involved. Witnesses have been reminded to maintain decorum during proceedings, with Greenwood facing reprimands for directing comments at others in the room. The inquiry’s findings could reshape understanding of factional funding mechanisms within Australian politics.
The Independent Commission Against Corruption continues its examination of Operation Rosny, with more witnesses expected to provide testimony in the coming days. The focus remains on establishing whether prohibited donations were made and how they were concealed through complex financial arrangements. Legal experts note that proving intent and knowledge will be critical in determining culpability. The public awaits further developments as the inquiry seeks to clarify the extent of any misconduct involving Catholic school funds and political lobbying.
Sources behind this briefing
Go to the original reporting
- The Guardian World↗Members of Liberal group received ‘kickbacks’ from lobbying company’s Catholic Schools NSW contract, Icac hears
