Sydney council corruption inquiry hears allegations of threats and secret recording

A corruption inquiry in New South Wales has heard allegations that former Strathfield councillors threatened, followed and secretly recorded former mayor Matthew Blackmore after he refused to step down. The hearing is taking place under Operation Rosny, the code name for the investigation by the New South Wales Independent Commission Against Corruption. The inquiry is examining whether the conduct amounted to blackmail or illegal surveillance.

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Blackmore told the commission that he had initially agreed in 2022 to split the mayoralty, taking the role first before resigning so a Labor councillor could complete the term. He said that arrangement was expected to favour Karen Pensabene. According to his evidence, he later told Sharangan Maheswaran and Pensabene in January 2023 that he wanted to remain mayor, which he said left them agitated and upset.

Blackmore alleged that Maheswaran told him he had a reputation in the party for not letting people who crossed him get away with it, and that it would take about six weeks to take him down. He also told the commission that he felt intimidated after seeing Maheswaran's car outside his home on several occasions. Blackmore said his wife photographed the vehicle only to check the number plate, after becoming concerned it might be linked to someone stalking the house.

The hearing matters because it goes to the conduct of elected local representatives and the use of political pressure inside a council leadership dispute. The allegations, if substantiated, could raise questions about how far factional competition was taken in an attempt to secure control of Strathfield council. The case also places the state's anti-corruption watchdog at the centre of a dispute that began as an internal power-sharing arrangement.

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The inquiry has heard that Maheswaran wanted Labor leadership at council, state and federal level before the 2023 state election to strengthen campaign efforts. Blackmore said Pensabene later messaged him to warn that Maheswaran was out of control and that 20,000 attack flyers were being printed. He also referred to one flyer left on his property, describing it as a hostile attack sheet.

What remains unclear is whether the commission will find that the conduct crossed the line from political conflict into blackmail or unlawful surveillance. The inquiry is still hearing evidence, and no findings have been reported in the material supplied. The next developments are likely to focus on the credibility of the allegations, the role of the councillors named, and whether any further evidence supports the claims made by Blackmore.

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