A senior political staffer to the then-NSW planning minister showed a colleague a video she could use to “get rid of” building commissioner David Chandler, a major corruption inquiry has heard.

The Independent Commission Against Corruption on Thursday heard the first details of a smear campaign against Chandler, including false claims that the outspoken public servant would take money in brown paper bags, had received a $10,000 deposit in his bank account, and shown favourable treatment to some companies.

The ICAC alleges the campaign was part of a co-ordinated effort by Nassif to undermine Chandler and prevent him from policing substandard building projects by his Toplace development firm.

After nearly a month investigating illegal donations claims, the ICAC has turned its focus towards a fresh set of allegations involving a $2 million bribe from Nassif to Liberal Party operatives Christian Ellis, Jeremy Greenwood and Charles Perrottet, the brother of former premier Dominic Perrottet.

The commission previously heard phone taps in which Nassif says he was promised Chandler would be removed from his role policing substandard developments across Sydney.

Cassandra Lawry, the chief of staff to the then-fair trading minister Eleni Petinos, gave evidence on Thursday about a meeting at the level nine garden of Parliament House in May 2022. At that meeting, Chris Spence, the chief of staff to the then-planning minister Anthony Roberts, showed Lawry a video which showed Chandler on a building site complaining about certification issues.

Asked what Spence said to Lawry after playing the video, Lawry replied: “I recall the wording being something along the lines of ‘if you want to get rid of him, this might help’.”

Petinos was responsible for the portfolio in which Chandler was employed.

Spence also showed Lawry text messages that purported to show evidence of a bank account that would show Chandler taking money.

Lawry said she had spoken with the department secretary, Emma Hogan, about rumours she had heard that Chandler was open to bribes, and Hogan assured her they were false rumours.

Lawry told the ICAC on Thursday that she “started to wonder” what Spence’s true motivations were within a few days of that meeting.

She discussed the matter with another public servant and said “something doesn’t feel right about this”.

Asked by counsel assisting the commission Dr Peggy Dwyer, SC, whether she felt she was being set up, Lawry replied: “I did.”

Spence is a former MP who was forced to resign from the Liberal Party in 2014 during a previous inquiry codenamed Operation Spicer. Spence was later found to have been involved in a scheme to disguise political donations from banned donors.

The ICAC also heard on Thursday that Spence repeatedly attempted to contact Lawry on June 20 about the need to meet with her and Petinos that day to discuss “two issues coming your way”.

Lawry could not recall whether the meeting was to discuss Chandler, but Dwyer suggested that could be the only logical conclusion.

The day after Spence peppered Lawry with missed calls, Lawry referred Chandler to the ICAC. She said she did not tell Petinos that she had written to the corruption watchdog about the building commissioner.

Dwyer noted that she was not suggesting Lawry had done anything wrong in referring concerns she had heard about Chandler to the ICAC.

The ICAC has not named Spence as a person of interest in its Operation Rosny inquiry.

The commission previously heard phone taps in which Nassif claimed to have significant influence over the previous Coalition government.

The commission is examining whether Nassif’s prediction was wishful thinking that serendipitously came to pass, or whether Chandler’s resignation was the result of work for which Nassif had paid Charles Perrottet and others.

In her opening address at the inquiry last month, Dwyer said she expected evidence would indicate Charles Perrottet’s efforts to remove Chandler included seeking the assistance of Petinos and Spence.

“As a result, although Charles Perrottet was not himself a public official, this commission will investigate whether the pursuit of outcomes sought by Mr Nassif, if proven, may constitute corrupt conduct by various persons,” Dwyer said.

Lawry was made Petinos’ chief of staff in January 2022 following the minister’s promotion to cabinet the prior month by Dominic Perrottet. Petinos and Lawry were friends before working together.

Lawry went to work for the government after nearly nine years at the NRL in various government relations roles.

Petinos will give evidence later on Thursday.

She is the second of Kellie Sloane’s opposition frontbench to be called to give evidence in the ICAC’s public hearings, but unlike her colleague Damien Tudehope she hasn’t stood aside from her role during the investigation.

Petinos is currently on maternity leave, but holds the shadow jobs and industry portfolio. She was not named as a person of interest.