Catholic Schools NSW CEO Sacked After Icac Corruption Inquiry 2026

The Catholic Schools NSW CEO has been sacked after appearing at an Icac inquiry into alleged corruption in the Liberal party. Dallas McInerney, who led the organisation, faced intense scrutiny over claims he arranged illegal political donations disguised as consultancy fees. The board's unanimous decision to terminate his employment marks a dramatic fall from grace for a prominent figure in NSW education and politics.

Background of the Icac Inquiry

The NSW Independent Commission Against Corruption (Icac) is investigating allegations that McInerney approved payments totalling $265,900 over four years to lobbying companies controlled by the conservative factional group known as the Reformers. These payments were allegedly made under the guise of consultancy services but were actually illegal political donations. McInerney, whose Liberal party membership was suspended after the inquiry was announced, has consistently maintained that the payments were for genuine consulting work.

The inquiry has also examined whether McInerney performed a factory reset on his work phone and iPad over the weekend to wipe critical evidence. He denied this action. Additionally, a message referencing a plan to 'shake down Angus' has been scrutinised, with McInerney rejecting that it referred to donations to the Reformers. Federal opposition leader Angus Taylor is not named in Icac's allegations and has repeatedly denied making payments to the Reformers.

Allegations and Payments

The core allegations revolve around the misuse of Catholic Schools NSW funds for political purposes. The table below summarises the key allegations and McInerney's responses.

The payments, which spanned four years, have raised serious questions about governance and accountability within Catholic Schools NSW. The board's statement on Friday said it had 'unanimously determined that there is a loss of confidence in Dallas McInerney's ability to lead the organisation into the future.' As a result, his employment agreement was terminated.

Termination and Response

In a statement provided to the Sydney Morning Herald, McInerney expressed gratitude and noted that the inquiry continues its important work. 'When the inquiry started I said I would privilege the position of the company before my own. That is why I stood aside,' he said. 'I note the inquiry continues its important work and we are months away from findings and conclusions. I will forever remain grateful for the opportunity to serve, and hope I have made some positive contributions along the way.'

Peter Yates, the interim CEO, will remain in the role as the organisation navigates this crisis. The sacking has sent shockwaves through the education and political sectors, with many calling for greater transparency in how public funds are managed. The Icac inquiry is expected to continue for several more months, and its findings could have far-reaching implications for NSW politics.

Key Takeaways

• Catholic Schools NSW CEO Dallas McInerney has been sacked after the board lost confidence in his leadership.
• The Icac inquiry is investigating alleged illegal political donations totalling $265,900 over four years.
• McInerney denies all allegations, including claims of evidence tampering.
• The inquiry is ongoing, and findings are months away.
• Interim CEO Peter Yates will lead the organisation during this period.

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