Former minister on verge of tears over sacking, realisation she was ‘used’ by a friend

A former NSW cabinet minister has told a major corruption inquiry she was “disgusted” by the thought of being used in a plot orchestrated by a disgraced developer to drive outspoken building commissioner David Chandler from office.

Eleni Petinos, the minister for fair trading and small business in the Perrottet government, told the Independent Commission Against Corruption on Thursday of repeated attempts by several Liberal Party operatives to undermine Chandler, including senior political staffer Chris Spence.

A defiant Petinos told the corruption watchdog she now realises Spence, a close friend and the chief of staff to then-planning minister Anthony Roberts, had used her to try to have Chandler removed.

“Frankly, even the little I knew coming into here today is enough to leave me disgusted and to feel like personal relationships were leant on in a highly improper way, and that’s not someone that you would call a friend,” she said.

The corruption watchdog on Thursday heard the first details of a smear campaign against Chandler, including false claims he would take money in brown paper bags, had received a $10,000 deposit in his bank account, and showed favourable treatment to some companies.

The ICAC alleges the campaign was part of a co-ordinated effort by fugitive developer Jean Nassif to undermine Chandler and prevent him from policing substandard building projects by his Toplace development firm. Chandler had been a regular thorn in the side for Nassif and his company.

After nearly a month investigating illegal donations claims, Operation Rosny has turned its focus towards a fresh set of allegations involving a $2 million bribe from Nassif to Liberal Party operatives Christian Ellis, Jeremy Greenwood and Charles Perrottet, the brother of former premier Dominic Perrottet.

The commission previously heard phone taps in which Nassif says he was promised Chandler would be removed from his taxpayer-funded role policing substandard developments across Sydney.

Petinos said Charles Perrottet had sought to sow doubts over Chandler’s suitability for the role during a phone call in early 2022, after she had been promoted to cabinet amid the fallout from Gladys Berejiklian’s resignation as premier.

She said Charles Perrottet had warned she would have her “hands full” with Chandler because he was “dodgy” and a bully.

She also recalled Spence repeatedly mentioned the existence of a video of Chandler in which the building commissioner complains about building certification issues.

The ICAC heard earlier on Thursday Spence had shown the video to Petinos’ chief of staff, Cassandra Lawry, during a meeting at Parliament House, and said it could help her “get rid of” Chandler.

Petinos was responsible for the portfolio in which Chandler was employed and would have held significant say over his future.

Spence is a former MP who was forced to resign from the Liberal Party in 2014 during a previous inquiry codenamed Operation Spicer. He was later found to have been involved in a scheme to disguise political donations from banned donors.

Petinos said it was now clear Spence wanted Chandler gone.

“I don’t understand why,” she said.

“He was a senior person in that government, his minister was very senior, and so it had not occurred to me that there was the possibility of any improper external influence.”

She said she respected the building commissioner and had no doubts about his experience or commitment to cleaning up the industry, but said he could sometimes “go rogue”.

Petinos was sacked over bullying allegations in July 2022.

She appeared on the verge of tears on Thursday while recounting the phone call in which Dominic Perrottet told her she “had to go”.

“I thought there was something very strange at play for Dominic to take the action that he did so swiftly, so coldly, and without the opportunity to even put me in front of a camera,” Petinos said.

“He was very, very cold. He was immovable.”

Chandler resigned as building commissioner that same month, citing concerns about Petinos and her office. He was later talked into coming back following overtures by the premier and others.

Lawry told the ICAC she also “started to wonder” what Spence’s true motivations were in raising the Chandler video with her in May 2022.

Asked by counsel assisting the commission Dr Peggy Dwyer, SC, whether she felt she was being set up, Lawry replied: “I did.”

The ICAC has not named Spence as a person of interest in its Operation Rosny inquiry. It has not accused Petinos, Lawry or Dominic Perrottet of any wrongdoing.

Dwyer also asked Petinos about evidence given by former Anthony Roberts staffer Dylan Whitelaw. He told the ICAC last month Spence was frustrated Petinos had “effed up” the chance to use the video against Chandler.

“I’m delighted I ‘effed it up’,” Petinos told Dwyer. She said Spence’s approaches were “so subtle they did not seem out of context until they have been strung together with the benefit of hindsight”.

The commission previously heard phone taps in which Nassif claimed to have significant influence over the previous Coalition government. It is examining whether Chandler’s resignation in mid-2022 was the result of work for which Nassif had paid Charles Perrottet and others.

Petinos said Nassif, who is now hiding in Lebanon, was one of the first developers Chandler raised with her when she became minister.

“Well before I became the minister for fair trading, Mr Nassif was getting a lot of media attention, unfavorable media attention, I should say, in relation to the quality of his buildings and also some of his conduct with Lamborghinis and whatever else,” she said.

“It was made very clear that he was an undesirable person to be around.”

The inquiry continues.

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