Former NSW building commissioner David Chandler has told a corruption inquiry that an allegation of an "extortion attempt" targeting construction company Toplace was used against him in efforts to get a prohibition order on its development lifted.
The Independent Commission Against Corruption (ICAC) is investigating whether people linked to the NSW Liberal Party solicited funds from prohibited donors and other sources to advance the interests of the right-wing NSW Reformers faction.
It is also examining whether donations linked to fugitive property developer Jean Nassif were exchanged for political favours, including removing Mr Chandler as building commissioner.
Mr Nassif, who fled to Lebanon, is expected to appear before the commission via video link next Friday.
He fled in December 2022, the month a previous parliamentary inquiry commenced and has not returned to Australia since.
In her opening statement, counsel assisting Peggy Dwyer SC said he had declined to appear at ICAC.
"We note that a warrant for his arrest has been issued by police in relation to allegations of criminal fraud," Dr Dwyer said.
"He has spoken to various media outlets since he left to vigorously defend himself, but he has declined an invitation to assist the commission."
ICAC hears of alleged shakedown
On Thursday, Mr Chandler said the alleged shakedown was raised during a 2021 meeting between himself and Toplace representatives, including Sharangan Maheswaran, when they were discussing what needed to happen before a prohibition order of the developer's Skyview project in Castle Hill could be lifted.
The commission heard that Mr Maheswaran, a person of interest in the inquiry, allegedly claimed the company had received an email seeking $5 million to be paid into a trust account.
Under questioning from counsel assisting Juliet Curtin, Mr Chandler said he was implicated in the allegation because there was a suggestion that if the money was paid, he would lift the order.
Ms Curtin: "Was the inference to be drawn there that you would benefit from this money being paid somehow?"
Mr Chandler: "Well, of course it was … but it didn't even sort of raise my blood pressure very much because I just said to them, 'Why don't we go straight to the police station now and report it?' and they said, 'No, no, no we're not confident about it yet'.
"I said, 'OK, well if you are, let's do it straight away but until much more substance to this is attached, you're dreaming'."
Mr Chandler was not provided with a copy of the alleged email but referred the matter to his department for investigation.
He said that when investigators sought further information from Mr Maheswaran, Toplace subsequently appeared to retreat from the unsubstantiated claim and did not assist with the investigation.
Mr Chandler is not accused of wrongdoing.
'I'll harm you'
Toplace went into voluntary administration in 2023, allegedly owing more than a billion dollars and leaving thousands of apartment owners with significant repair bills for structural and building defects.
Mr Chandler said he had few direct dealings with Mr Nassif himself but often dealt with Toplace.
He said Mr Nassif called him after his office issued a notice of intent to issue a prohibition order in relation to the Skyview site.
He recalled Mr Nassif saying: "Don't you harm my project and if you harm my project, I'll harm you."
Earlier in the inquiry, an intercepted call appeared to capture Mr Nassif discussing efforts to remove Mr Chandler from his position.
"I'm gonna step on his neck and strip him from his job," Mr Nassif said.
Mr Nassif also appeared to predict that then-fair trading minister Eleni Petinos would become one of his political allies.
The inquiry has heard evidence that a video of Mr Chandler was circulated and allegedly used as part of efforts to undermine him.
Mr Chandler was cleared of misconduct, but he said he believed Ms Petinos had lost confidence in him.
He resigned in 2022 following an investigation commissioned by Ms Petinos's office, but that was later reversed and he remained in the role until 2024.
Ms Petinos, who is not a person of interest or accused of wrongdoing, has told the inquiry she believed she was subsequently "used" in efforts to remove Mr Chandler and she was "disgusted" by the alleged conduct.
"Even the little I knew coming into here today is enough to leave me disgusted and to feel like personal relationships were lent on in a highly improper way," Ms Petinos told the hearing last week.
In a statement sent to media, Mr Chandler said there were "more important voices" that were yet been mentioned in the inquiry, including the victims of Toplace.
He said the defects had a significant impact on owners, renters, and the safety of first responders who were often called out to emergencies in the buildings.
"The making of these buildings often involved egregious treatment of designers, trade contractors, certifiers and other agencies like SafeWork and Local Government," Mr Chandler said.
"While the aspirations of the heavenly, political or greed seeking parties before ICAC are confronting, the 'hell on earth' impacts on owners and occupiers of buildings with serious defects were the central reasoning for the NSW Building Reforms commenced in 2019."
