‘Malicious campaign of whispers’: ICAC target launches legal action against political enemy

Even before the explosive corruption inquiry has started, former Strathfield Labor councillor Sharangan Maheswaran has launched preemptive legal action against his political nemesis and one-time independent mayor Matthew Blackmore.

Maheswaran, a lawyer and a longtime ALP member who at various stages had weighed up a political career in state or federal parliament, has accused Blackmore of spreading rumours about him fuelled by malice. He is pursuing him for injurious falsehood.

Those so-called rumours will feature in the Independent Commission Against Corruption’s blockbuster inquiry, codenamed Operation Rosny, in which Maheswaran, along with his Labor colleague Strathfield councillor Karen Pensabene, face allegations of trying to blackmail Blackmore.

In January 2023, Blackmore, who was then mayor of Strathfield, took notes of an extraordinary meeting with Maheswaran, who told him that for the past five months he had been trailed by a private investigator who secretly recorded meetings at cafés and pubs.

Blackmore told colleagues that Pensabene was also present at this meeting, where Maheswaran said he needed to relinquish the mayoralty. If he failed to comply, Maheswaran threatened to release to the media material that would make the mayor look bad.

Maheswaran does not deny that he did, in fact, hire an investigator to follow Blackmore. The lawyer’s go-to firm for surveillance was Elite Risk Services, led by former Australian Federal Police officer Shane de Kauwe.

“ERS was engaged by me to undertake and investigation of Mr Blackmore after I was informed of multiple threats by Mr Blackmore against me,” Maheswaran told the Herald.

“The evidence returned by ERS is with the NSW ICAC, and it would be inappropriate for me to comment further.”

A close associate of Blackmore’s, with knowledge of the matters, said Maheswaran’s claims were a fabrication.

De Kauwe was employed for many years by fugitive property developer Jean Nassif. The introduction to Nassif was made via Toplace lobbyist Jeremy Greenwood, a mutual friend of Maheswaran and De Kauwe. Toplace was Nassif’s construction company.

Greenwood and his former business partner, Christian Ellis, both face allegations that they were involved in Liberal Party branch-stacking allegedly at the behest of Nassif.

A source, who asked not to be named, said De Kauwe had also conducted surveillance on then police minister David Elliott, but for only four days.

Nassif had received information that Elliott had been having an affair. However, after a short surveillance of Elliott, the private investigator reported back that there was no affair and that Elliott just did his work and came home again.

“My life is a f–king open book,” Elliott told the Herald.

The former Liberal minister, who had previously been threatened by Nassif over the phone, said he became aware of the false information being circulated. “I kept getting messages saying he [Nassif] is after you,” Elliott said

The ICAC inquiry will examine Nassif’s attempts to damage the career of Elliott, who was a vocal opponent of Nassif’s developments in his electorate, as well as the developer’s efforts to remove the then building commissioner David Chandler, whose team had issued stop-work orders against Nassif until defects were fixed.

Nassif, who employed multiple private investigators, is understood to have used somebody other than De Kauwe for surveillance on Chandler.

De Kauwe, 60, was reluctant to comment on the matters due to the forthcoming ICAC inquiry.

“All these nefarious allegations are just not true,” he said. “Both sides of politics use me because I play with a straight bat.”

Maheswaran said Blackmore’s allegations to the corruption watchdog were slanderous.

“There is abundant evidence that Mr Blackmore’s allegation is a fabrication and driven by malice,” Maheswaran said.

Asked about the legal action against Blackmore, Maheswaran said: “It would be inappropriate for me to comment on a matter that will soon be before the courts.

“Mr Blackmore has engaged in a malicious campaign of whispers against me inspired by pure malice to which there are numerous witnesses. I have no other option but to take this to a court of law.”

Blackmore declined to comment. “It’s before the ICAC and I trust ICAC to investigate the matter fully,” he said.

Maheswaran and Pensabene, who replaced Blackmore as mayor, have had their ALP memberships suspended.

As well as his bitter battle with Blackmore, Maheswaran has links to Nassif and was close to several of the Liberal powerbrokers who allegedly did Nassif’s bidding by branch-stacking the Hills Shire Council to install people who would be more amenable to approving Nassif’s questionable developments.

Those allegations will also be investigated when Operation Rosny starts public hearings on July 27.

Nassif boarded a flight to Dubai on December 9, 2022 and has never returned. The week before his departure, Nassif and his company were stripped of their building licence. Within months, Nassif’s empire had collapsed with debts of more than $1.6 billion.

There is a warrant out for Nassif’s arrest.

In February 2023, search warrants were executed at Nassif’s home and office. Two days later, Maheswaran’s mobile phone and laptop were seized as the councillor arrived on a flight from Singapore.

At the time, Maheswaran confirmed that Nassif had been a client “over the years” and that he had provided legal advice on a variety of matters. He also said Toplace had never had any projects in Strathfield.

The ICAC inquiry will also look at Nassif’s alleged collusion with hard-right Liberal powerbrokers Christian Ellis and Charles and Jean-Claude Perrottet, brothers of then-premier Dominic Perrottet.

Nassif is alleged to have funded the branch stacking with political powerbrokers to install local councillors who allegedly favoured the developer’s interests in Sydney.

Another of the central allegations to be explored by the corruption watchdog is the involvement of right-wing Liberal powerbroker, Dallas McInerney, who last week stood aside from his position as CEO of Catholic Schools NSW.

McInerney, 53, is alleged to have “arranged and approved” political donations from Catholic Schools NSW to recruit members to the party.

Start the day with a summary of the day’s most important and interesting stories, analysis and insights. Sign up for our Morning Edition newsletter.