Catholic Schools NSW chief sacked after testifying at corruption inquiry
Catholic Schools NSW has terminated CEO Dallas McInerney's contract after he gave evidence at an anti-corruption inquiry examining alleged illegal donations linked to the Liberal party.
The board of Catholic Schools New South Wales has terminated the employment of chief executive Dallas McInerney, citing a loss of confidence in his ability to lead the organisation. The decision follows his appearance before the state's Independent Commission Against Corruption (Icac), where he testified this week and last week.
Icac is examining claims that McInerney arranged and approved illegal political donations from Catholic Schools NSW to lobbying firms linked to the Reformers, a conservative Liberal party faction, disguised as consultancy fees. The payments in question total $265,900 over four years, which McInerney maintains were for legitimate consulting work. His Liberal party membership was suspended once the inquiry was announced.
Dispute over wiped devices
On Wednesday, McInerney denied intentionally destroying evidence but confirmed he had factory-reset a work phone and an iPad over the weekend. He said the phone reset followed a bank alert about a possible account compromise, while the iPad was wiped ahead of being returned to the company. Counsel assisting the inquiry suggested the move looked like an attempt to erase evidence critical to the case, which McInerney rejected, noting he had known about the public inquiry for several weeks beforehand.
McInerney, a factional ally of federal opposition leader Angus Taylor, has denied that a message referencing a plan to “shake down Angus” related to donations to the Reformers. Taylor has not been named as a suspect and has repeatedly denied making any such payments.
Catholic Schools NSW said McInerney had already stepped aside before the hearings began so the organisation's work could continue uninterrupted. Interim chief executive Peter Yates will remain in the role during the search for a permanent replacement, and the board said it backed an external review of the organisation's operations.
The inquiry forms part of a broader Icac investigation into alleged corruption tied to the NSW Liberal party, including claims involving a fugitive property developer and disputes over the state's former building commissioner. Further witnesses are scheduled to appear in the coming week.
