Catholic Schools NSW Boss Sacked After Appearing at ICAC Inquiry Into Alleged Liberal Party Corruption

Dallas McInerney, the chief executive of Catholic Schools New South Wales, has been dismissed from his position after testifying at a watchdog inquiry concerning allegations of corruption within the state's Liberal party. The NSW Independent Commission Against Corruption (ICAC) is examining claims that McInerney facilitated and approved illegal political donations, totaling $265,900 over four years, from Catholic Schools NSW to lobbying companies associated with the conservative faction known as the Reformers. These payments were reportedly disguised as consultancy services.

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The Board has unanimously determined that there is a loss of confidence in Dallas McInerney’s ability to lead the organisation into the future.

McInerney, whose Liberal party membership was suspended following the ICAC's announcement, has maintained that the funds were for legitimate consulting work. He also denied allegations of performing a "factory reset" on a work phone and iPad over the weekend to erase crucial evidence. McInerney, identified as a factional ally of federal opposition leader Angus Taylor, has refuted claims that a message about "shaking down Angus" referred to donations to the Reformers. Taylor himself is not implicated in the ICAC's specific allegations and has consistently denied making payments to the group.

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As such, the Board has now terminated Mr McInerney’s employment agreement with Catholic Schools NSW.

Catholic Schools NSW announced on Friday that its board had "unanimously determined that there is a loss of confidence in Dallas McInerney’s ability to lead the organisation into the future." Consequently, the Board terminated his employment agreement. McInerney stated that he had initially stood aside when the inquiry began, prioritizing the company's position. He acknowledged the inquiry's ongoing work and noted that findings are months away, expressing gratitude for his opportunity to serve.

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When the inquiry started I said I would privilege the position of the company before my own. That is why I stood aside.

Peter Yates will continue as interim CEO while a search for a permanent replacement is underway. The governing body expressed deep concern over the allegations and supports an external review of its operations. McInerney explained the phone and iPad wipe was prompted by a notification from his bank about a compromised account. However, counsel assisting the inquiry suggested this action was a "transparent attempt... to wipe evidence." McInerney countered that he had known about the inquiry for weeks and would have had ample opportunity to delete data earlier if that were his intention.

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I note the inquiry continues its important work and we are months away from findings and conclusions.