Fugitive developer who fled to Lebanon to give evidence at ICAC

In short:

David Chandler has told a corruption inquiry about an alleged shakedown raised during a 2021 meeting when he was NSW building commissioner.

The Independent Commission Against Corruption is investigating whether donations linked to fugitive property developer Jean Nassif were exchanged for political favours.

Mr Chandler is not accused of wrongdoing.

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 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.