Updated July 3, 2026 — 6:02pm,first published 4:41pm
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NSW Liberal leader Kellie Sloane has suffered her first political scalp ahead of a looming corruption hearing, with Damien Tudehope standing down from the frontbench.
The senior frontbencher confirmed on Friday that he would stand aside as shadow attorney-general because he had been called as a witness to the inquiry.
Damien Tudehope is standing down.Dominic Lorrimer
The Independent Commission Against Corruption on Wednesday announced a long-awaited public inquiry following its lengthy investigation into fugitive Sydney property developer Jean Nassif’s links to Liberal powerbrokers, councils and Catholic Schools NSW boss Dallas McInerney.
Tudehope said he told Sloane of his decision on Friday, and stressed that there “is no suggestion of any wrongdoing by myself, nor am I under investigation”.
“The recent announcement by the ICAC that Operation Rosny will soon begin a public inquiry into alleged political donations involves several people with whom I have had close relationships during my political career,” Tudehope said in a statement.
Tudehope was a partner for 30 years at the law firm O’Hara and Company with lawyer, hotelier and property developer Michael O’Hara, whom the ICAC alleges made illegal donations to recruit party members. Tudehope is also close to McInerney and the Perrottet family.
According to a detailed dossier on the Liberal Party tabled to NSW parliament, Jean-Claude Perrottet (the youngest brother of former premier Dominic) worked for Tudehope, who was a former finance minister and is widely respected across the factions.
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Jean-Claude is accused of having “solicited or accepted political donations, including from prohibited donors, in amounts that were not declared and exceeded applicable donation caps”.
Another Perrottet brother, Charles, will also feature in the ICAC’s investigation.
Dominic Perrottet is not accused of any wrongdoing.
Tudehope said he was “concerned that, while the public hearings are under way, my position as shadow attorney-general and leader of the opposition in the Legislative Council could become an unnecessary distraction for Kellie Sloane and my parliamentary colleagues.
“I also believe it is my responsibility to set an example during periods such as this by holding myself to the highest standard of transparency and accountability – something the Minns Labor government has refused to do since its election over three years ago,” Tudehope said.
Earlier this week, Sloane described the ICAC inquiry as a “massive distraction” just eight months out from the state election.
“To be absolutely clear that I don’t stand for the kind of behaviour that is being alleged,” she said.
“This behaviour, if it’s proven, is absolutely reprehensible, has no place in the party that I lead.”
On Thursday, former NSW police minister David Elliott predicted NSW frontbenchers could lose their jobs once details of the commission were aired during the eight-week hearing, which kicks off on July 27.
It has been alleged that at the behest of Nassif, illegal donations were used to recruit party members and to do “damage to the political career” of Elliott, and to bring about the removal of then-building commissioner David Chandler from public office.
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Alexandra Smith is a senior writer and former state political editor of The Sydney Morning Herald.Connect via X or email.From our partners