New South Wales's anti-corruption watchdog is investigating allegations that money from Catholic Schools NSW was funneled through sham arrangements to bankroll Liberal Party recruitment efforts, with text messages describing the payments as "filthy schools money" now central to the inquiry.
The Independent Commission Against Corruption is examining whether prohibited political donations were disguised through third parties to support the Liberal-aligned NSW Reformers faction and advance the interests of fugitive property developer Jean Nassif. The inquiry has heard members of the faction allegedly used companies, fake invoices, and consulting agreements to hide the true nature of political contributions.
The 'Filthy Schools Money' Exchange
A text message shown at last month's hearing revealed lobbyist Jeremy Greenwood telling Jean-Claude Perrottet — brother of former premier Dominic Perrottet and a Reformers member — "Hey, so you know I'm good to you and help you and give you your filthy schools money and put up with you f***ing whinging." Perrottet's response was immediate: "Don't put that in writing." Greenwood replied that the message would delete.
Counsel assisting the commissioner, Peggy Dwyer SC, alleged the exchange referred to payments from Catholic Schools NSW intended to fund Liberal Party recruitment work. She'd previously told the commission this evidence would demonstrate that key Reformers figures knew they were operating through "sham arrangements."
Greenwood, now in his third day of testimony, dismissed the message as a "stupid joke" with a friend about something that would "make him nervous to hear." When Dwyer pressed him — "You knew it was, in your words, filthy schools money, because that was a dodgy arrangement where you were passing on money from Catholic Schools that was intended to fund his recruitment work for the Liberal Party, correct?" — Greenwood denied it. "Look, it's a stupid joke. I rile him up all the time … I regret it, because it's become prominent here, but it's just our relationship."
The commission heard that Perrottet deleted the message from his phone.
Alleged Efforts to Avoid Scrutiny
The inquiry has also revealed extraordinary alleged efforts to dodge accountability. In her opening statement, Dwyer disclosed that Perrottet traveled to Fiji to avoid giving evidence in a 2023 parliamentary inquiry, with "financial assistance from others named" in the allegations. Greenwood admitted Wednesday he paid for the trip to help Perrottet avoid being summonsed.
The commission also heard a security guard — organized by former Labor councillor Sharangan Maheswaran and likely paid by Nassif's company — was stationed outside Greenwood's home to prevent process servers from contacting him.
Tense Testimony and Judicial Rebuke
Greenwood's testimony has been marked by frequent claims he couldn't recall evidence presented to him. Presiding Commissioner Fabian Gleeson SC stepped in multiple times to direct him to answer questions. Wednesday's hearing became particularly tense when Greenwood faced questions about Catholic Schools NSW payments. When Dwyer challenged his account, Greenwood turned to someone in the room and said, "Don't give me that look."
Gleeson's response was sharp. "Just everyone pause. Mr Greenwood, you need to be respectful in the way in which you behave. You need to listen to counsel's questions. You do not direct comments to other people sitting in this room. Do you understand what is expected of you as a witness?"
Greenwood apologized but claimed he was reacting to people making faces at him. Gleeson cut him off: "Mr Greenwood, can you answer the question? Listen to the question and answer it. Do you understand what is expected of you in terms of the respectful conduct and decorum in this room?"
The inquiry is also examining allegations involving Greenwood's former company, Beckington, which allegedly disguised political donations as payments for lobbying and government relations work.
Why This Matters:
The allegations strike at the heart of public trust in democratic institutions and the integrity of political funding systems designed to prevent undue influence. If Catholic Schools NSW funds — collected ostensibly for educational purposes — were diverted to political recruitment, it raises serious questions about accountability in organizations that receive public subsidies and tax benefits. The alleged use of sham invoicing and corporate structures to disguise donations undermines transparency requirements meant to ensure voters know who's funding their representatives. The claimed efforts to evade parliamentary and legal scrutiny, including international travel funded by interested parties and security guards blocking process servers, suggest a pattern of avoiding the accountability mechanisms democratic societies depend on. These revelations highlight why strong anti-corruption institutions with investigative powers remain essential safeguards against the corruption of democratic processes by private interests.