Racecourse corruption claims shot down by watchdog

Plans to turn Rosehill Racecourse into a major housing project have been mired in controversy. (Mick Tsikas/AAP PHOTOS)

Allegations that the NSW premier acted improperly over plans to redevelop a historic racecourse have stalled in the gates after the state's integrity watchdog rejected suggestions of corrupt conduct.

The Independent Commission Against Corruption (ICAC) on Thursday responded to concerns relayed by a Liberal-led committee following a fiery parliamentary probe into plans to turn Sydney's Rosehill Racecourse into a major housing project.

Premier Chris Minns was accused of failing to reveal a conflict of interest and making inaccurate disclosures before publicly advocating for a divisive proposal to turn the 140-year-old horseracing track into a "mini city" of up to 25,000 homes.

NSW Premier Chris Minns
NSW Premier Chris Minns will not be investigated by the state's corruption watchdog.

An assessment panel, including the watchdog's three commissioners and senior staff, considered the concerns identified in the committee's report and found no potential wrongdoing, ICAC said in a statement.

"The information provided does not indicate a reasonable likelihood of involving corrupt conduct," it said.

"The commission will therefore not be pursuing the matter."

Mr Minns firmly denied any wrongdoing over the proposal after the parliamentary inquiry heard that it was a long-time friend of the premier who raised the prospect of selling the Australian Turf Club-owned racecourse in October 2023.

Turf club corporate affairs executive Steve McMahon pitched the idea to chairman Peter McGauran, sparking a meeting with the premier days later.

The Labor leader's diary described it as a "meet and greet", which the committee found was inaccurate and misleading, recommending an update to routine disclosure guidelines.

Committee member and Greens MP Cate Faehrmann cited "unanswered questions" and "conflicting evidence" in referring the report to ICAC.

"We're not making a judgment call ... but it is the responsibility of us to refer the report to ICAC and let them make a decision," she said at the time.

Opposition planning spokesman Scott Farlow said the premier should have declared a conflict of interest regarding his decades-long friendship with Mr McMahon and met with other turf club executives instead.

In a letter addressed to the Liberal MP, ICAC thanked him for the referral, noting such information assisted the commission in performing its duties.

Independent MP and turf club member Mark Latham wanted the inquiry to find Mr Minns had acted improperly and personally refer him to the watchdog, a move voted down by the rest of the committee.

The inquiry heard turf club members were unlikely to ultimately vote in support of the proposal despite its potential to deliver a multibillion-dollar windfall for racing.

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