Counsel assisting suggests alleged demand against developer Jean Nassif may have been linked to unpaid remediation, as former Toplace executive Sharangan Maheswaran disputes characterisation; no wrongdoing alleged against contractor or former building commissioner.
The New South Wales Independent Commission Against Corruption (ICAC) has closely questioned a $5 million extortion claim raised in connection with building work on developments linked to fugitive property developer Jean Nassif, with counsel assisting suggesting the demand may have related to unpaid remediation rather than a shakedown.
During hearings in Operation Rosny this week, former Toplace lawyer and executive Sharangan Maheswaran was pressed on the circumstances surrounding the alleged extortion attempt. Maheswaran had previously told then-NSW Building Commissioner David Chandler that a contractor chasing money believed to be owed was also seeking $5 million-to be paid to a third party-in exchange for influencing Chandler to lift a prohibition order on one of Nassif’s projects.
Counsel assisting the commission, Peggy Dwyer SC, presented text messages and transcripts of conversations between Nassif and contractor Navid Ardestani. She put to Maheswaran that the exchanges appeared consistent with a genuine request for payment so that remediation works could proceed on Nassif’s buildings, rather than an extortion attempt. Ardestani had written that the purpose of a meeting was to arrange for a builder to fix issues identified by the building commissioner, and later referred to having a bank cheque ready for remedial construction and related work.
Maheswaran disputed that characterisation. He maintained that Nassif had taken the alleged demand seriously and was contemplating paying the sum, and that references to threats or improper influence had been made, even if not fully reflected in the text messages. He told the commission he raised the matter with Chandler in the hope the commissioner would reject any suggestion of influence and thereby deter Nassif from making any payment. Maheswaran said Nassif did not want to report the matter to police.
ICAC Examines $5M Extortion Claims:
Neither Ardestani nor Chandler faces any allegations of wrongdoing in the inquiry. Chandler has previously given evidence that when informed of the claimed extortion attempt he urged Toplace representatives to take any evidence to police and offered to accompany them. The company declined. Chandler later reported the information to the Department of Fair Trading for investigation. Maheswaran declined to be interviewed as part of that departmental inquiry.
The commission heard that Maheswaran also discussed the alleged extortion with others, including Charles Perrottet, but did not formally report it to police or the ICAC at the time. Dwyer suggested the claims may have been used in an effort to apply pressure in relation to the building commissioner’s scrutiny of Toplace projects. Maheswaran rejected that suggestion.
ICAC Probes Toplace Political Dealings:
Operation Rosny is examining a range of allegations involving Nassif, his company Toplace, and associated political and commercial dealings. Nassif, who left Australia in late 2022 and remains overseas, has appeared before the commission via video link from Beirut. The inquiry is looking into claims that money was paid to political figures to secure outcomes favourable to Nassif’s interests, including efforts to undermine Chandler and former minister David Elliott.
The $5 million claim forms one element of the wider evidence concerning how Toplace responded to regulatory action over building defects. Prohibition orders and stop-work notices had been issued against certain Nassif developments amid concerns about serious defects, including waterproofing and other structural issues.
Maheswaran continued his evidence over several days, with the commission examining recordings, contemporaneous notes and subsequent communications. He has denied acting dishonestly or improperly in the way the extortion claim was conveyed or documented.
The hearings continue as the ICAC investigates whether any corrupt conduct occurred in connection with the dealings between Nassif’s interests, political operatives and efforts to influence regulatory or political outcomes. No findings have yet been made.