Alleged $5m 'extortion attempt' labelled a 'lie' at NSW ICAC

A $5 million demand at the centre of an alleged "extortion attempt" against fugitive property developer Jean Nassif has been labelled a "lie" amid a NSW corruption watchdog probe.

The NSW Independent Commission Against Corruption (ICAC) heard Mr Nassif claimed he was being extorted by former Toplace contractor Navid Ardestani, who was pursuing him for money he believed he was owed and communicating with other staff about outstanding payments.

Mr Nassif forwarded some of the messages with Mr Ardestani to his associate and former Toplace executive Sharangan Maheswaran as evidence of an alleged "extortion attempt".

During Mr Maheswaran's third day at ICAC, counsel assisting the commission Peggy Dwyer SC suggested the full exchange instead showed Mr Ardestani trying to secure payment for contractors and organise remediation work at Mr Nassif's defected developments.

"What I'm putting to you puts a lie to your claim that this was an extortion. This is clearly a request for payment so that remediation works can take place on Jean Nassif's building,"

Dr Dwyer said.

Mr Maheswaran maintained there was a possible extortion attempt, although it was not reported to police at the time.

Mr Ardestani is not accused of any wrongdoing.

$5 million dispute over remedial work

In a message read to the commission, Mr Ardestani told Mr Nassif a meeting was intended to arrange for a builder to carry out remediation work requested by then-NSW building commissioner David Chandler.

The commission heard that Mr Ardestani later told Mr Nassif to have a $5 million bank cheque ready for the remedial construction company, as well as $250,000 for painting and rendering work.

He said the construction company's lawyer would attend the meeting and warned that if the money was not ready, the builders would not sit down with them.

When the messages turned to payment for work already completed, Mr Nassif accused Mr Ardestani of playing "illegal games".

Mr Ardestani rejected the accusation and asked Mr Nassif to pay the workers so the dispute could be resolved.

"We don't make threats, and we never did… and also, we don't do anything illegal," Mr Ardestani said.

Dr Dwyer put it to Mr Maheswaran that the exchange appeared to show Mr Ardestani was genuinely trying to get paid.

Dr Dwyer: "Mr Maheswaran, you're a lawyer … you have ethical duties to properly assess the evidence before you.

"Surely you could see that Mr Navid was genuinely pleading with Mr Nassif to be paid and was refuting any suggestion of corruption?"

Mr Maheswaran: "In writing, he appears to be. Yes, and people very rarely put those things in writing."

In a separate exchange between the pair, Mr Nassif said he did not want to work with the contractors and claimed they were already paid.

He accused them of threatening him with the union and the then-building commissioner Mr Chandler.

Mr Ardestani denied doing so.

"I really don't understand your text Jean … Get us paid please and we can finalise friendly," Mr Ardestani said.

Mr Maheswaran maintained that Mr Nassif's messages were evidence that some form of threat had been made, even if that threat was not contained in the messages.

'I'm told you control the government'

ICAC is examining whether prohibited political donations linked to Mr Nassif were exchanged for political favours, including removing Mr Chandler as building commissioner and stopping him from investigating Mr Nassif's developments.

Phone taps were heard at the inquiry.

In a recorded call between Mr Nassif and Mr Ardestani, Mr Nassif repeatedly accused the contractor of passing a report about his developments to Mr Chandler.

"I didn't know you were so f***ing powerful mate … I'm told you control the government, the commissioner, and the ministers," Mr Nassif said.

"Why you sent this report to the commission … Can you tell me why?"

Mr Ardestani did not accept the accusation and pushed for a face-to-face meeting, later denying he knew the building commissioner.

When asked if the recording supported the allegation of extortion, Mr Maheswaran said Mr Ardestani's voice was "slightly menacing".

Extortion allegation potentially fabricated

The commission previously heard an allegation of an "extortion attempt" being raised during a 2021 meeting involving Toplace representatives, including Mr Maraswaran, as Mr Chandler was scrutinising serious defects at Skyview.

Mr Chandler told the inquiry that he was informed of an alleged demand for $5 million and offered to accompany a Toplace representative to police to report it.

The probe heard the alleged payment was linked to a claim that Mr Chandler would lift a prohibition order affecting the development, which Mr Chandler has denied.

Mr Chandler is not accused of any wrongdoing.

Dr Dwyer: "I suggest to you it was a tactic that you had adopted to try and pressure an independent office holder who was appointed to clean up the building industry, that is, Mr Chandler."

Mr Maherswaran: "I can't even understand the logic of that suggestion, but I reject it."

Mr Nassif previously denied that he fabricated the extortion allegation to damage Mr Chandler.