The chief executive of Catholic Schools New South Wales, Dallas McInerney, has been sacked after appearing at a watchdog inquiry into allegations of corruption in the state’s Liberal party. The NSW Independent Commission Against Corruption (Icac) is investigating the allegation that McInerney, who gave evidence to the inquiry this week and last week, arranged and approved illegal political donations from Catholic Schools NSW to lobbying companies controlled by conservative factional group the Reformers, under the guise of consultancy services. McInerney, whose Liberal party membership was suspended after the announcment of Icac’s inquiry, has insisted payments totalling $265,900 over four years were for genuine consulting work.
On Wednesday, McInerney denied he performed a factory reset on a work phone and iPad over the weekend to wipe critical evidence. McInerney, who is a factional ally of federal opposition leader, Angus Taylor has rejected that a message about a plan to “shake down Angus” referred to donations to the Reformers. Taylor is not named in Icac’s allegations and has repeatedly denied making payments to the Reformers.
In a statement shared on Friday, Catholic Schools NSW said its board had “unanimously determined that there is a loss of confidence in Dallas McInerney’s ability to lead the organisation into the future”. In a statement provided to the Sydney Morning Herald on Friday, McInerney said: “When the inquiry started I said I would privilege the position of the company before my own. That is why I stood aside.
I will forever remain grateful for the opportunity to serve, and hope I have made some positive contributions along the way.” Interim CEO, Peter Yates, will remain in the role while a search process is conducted. The schools governing body said it would not make any statement about the inquiry or witnesses during public hearings, but said the allegations were of “deep concern” and it supported an “an externally conducted review of CSNSW’s operations.” On Wednesday, McInerney said he performed the wipe on his phone after his bank contacted him last Friday to tell him his account had been “compromised by an unknown merchant”. He said he performed a factory reset on an iPad ahead of it being surrendered to Catholic Schools NSW, “in the realisation I’m not likely returning to the company”.
Counsel assisting, Dr Peggy Dwyer SC, put to McInerney that the move was “a transparent attempt … to wipe evidence that would have been critical for this commission”. McInerney responded that he had known about Icac’s public inquiry “for almost seven or eight weeks”. What triggered it was a compromise on my banking alerted to me by the NAB [National Australia Bank], and I have the case file number for that.
I can share that with the commission.” McInerney previously stood aside from his role as CEO of the governing body for 600 schools in NSW before the Icac hearings began “to allow the work of Catholic Schools NSW to continue its important mission”, he said in a statement. He was appointed as the inaugural CEO of the organisation in 2017. On the inquiry’s first day, Dwyer said it was not suggested that the schools governing body or its board were aware of the alleged actions by McInerney.
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