The handshake deal and the broken agreement: Former Strathfield mayor before ICAC

Former Strathfield mayor Matthew Blackmore has told a corruption inquiry that his relationship with fellow Labor councillors Sharangan Maheswaran and Karen Pensabene became strained after he sacked the council’s general manager about six weeks into his term.

The relationship broke down after the general manager was sacked in March 2022 and the trio went from joining each other for drinks or dinner after council meetings to barely speaking, the Independent Commission Against Corruption has heard.

Blackmore is appearing before the commission as it investigates whether Maheswaran and/or Pensabene engaged in dishonest conduct including blackmail or possible surveillance when the three were on council. Blackmore is not a person of interest in the inquiry, codenamed Operation Rosny.

Pensabane remains on council with Blackmore, who is now an independent, but Maheswaran, who was a senior executive and lawyer for disgraced developer Jean Nassif, is no longer a councillor.

Nassif will make a long-awaited appearance via video link from Lebanon later on Monday. He has rescheduled once, citing health concerns, and is wanted in Australia on serious fraud charges.

The commission was told on Monday morning about a meeting Blackmore says he had with Labor councillors, including Pensabene, to reach a hand-shake deal on who would become Strathfield mayor in early 2022.

Blackmore told the commission an agreement was reached that he would take the mayor position for the first year of the term, and then a Labor councillor, likely Pensabene, would take over for the remainder of the term. Blackmore ultimately did not stick to that agreement.

He said another councillor, Nella Hall, became angry and wanted Blackmore to instead sign an agreement with her to support her as mayor.

“Did you intend to honour this agreement?” Counsel assisting Hugo Wilesmith asked.

“No,” Blackmore said.

Wilesmith: “But you signed it to placate Councillor Hall?”

“Yes,” Blackmore responded.

Wilesmith then pressed Blackmore on his knowledge of property developers and asked about how he came to know the developer Charlie Demian, who was pursuing a development in Homebush. They were introduced by the former Strathfield mayor Antoine Doueihi, the commission was told.

At their meetings, mostly at a local café called Joe’s in Homebush, Demian communicated to Blackmore his frustrations about his development not progressing.

Demain said he had also met with Maheswaran, whom he believed would support his development, the commission heard.

“Is it fair to say Mr Demian tried to lobby you?” Wilesmith asked.