
Catholic Schools NSW (CSNSW) has dismissed its CEO, Dallas McInerney, after he testified before the NSW Independent Commission Against Corruption (ICAC) during August.
In a media statement, CSNSW said its board of unanimously agreed it had lost confidence in McInerney’s ability to lead the state’s peak Catholic education body.
ICAC is investigating allegations that political donations were channelled through CSNSW via sham invoices to a conservative Liberal Party faction known as the NSW Reformers.
McInerney stepped aside from his role on 1 July after the board became aware he would be called as a witness in ICAC’s Operation Rosny.
ICAC is examining allegations that donations were arranged and approved by McInerney, were not properly declared, exceeded legal limits and were used to recruit or renew memberships of the NSW Liberal Party.
The allegations have not been proven and no findings have been made against McInerney.
During public hearings, McInerney also acknowledged that he had factory-reset his work phone and iPad without seeking advice from his lawyers or consulting Catholic Schools NSW.
He said a suspected compromise of his banking through Apple Pay prompted him to reset the phone, while also saying he wiped both devices because he intended to return them to Catholic Schools.
Counsel assisting the commission, Peggy Dwyer SC, described the action as a “transparent attempt” to destroy evidence.
CSNSW represents and helps oversee funding arrangements for nearly 600 Catholic schools with about 274,000 students across the state.
“In the opening statement Counsel Assisting the Commission stated that there was no suggestion that CSNSW is responsible for the alleged conduct being investigated by the Commission, nor that any CSNSW Board or executive were aware of the alleged actions of Mr McInerney,” the media statement read.
“The matters that are the subject of the Inquiry are, though, of deep concern to CSNSW and to its key stakeholders.”
The board has pledged to commission an externally conducted review of CSNSW’s operations. Peter Yates will continue as interim CEO until a new CEO is appointed.
The Operation Rosny investigation is ongoing and the public inquiry hearings continue until late September.



