Catholic Schools NSW (CSNSW), the peak body overseeing almost 600 Catholic schools across the state, has sacked chief executive Dallas McInerney, days after he gave evidence at the NSW Independent Commission Against Corruption (ICAC).
In a statement issued on Friday, 21 August 2026, the CSNSW board said it had "unanimously determined" it had lost confidence in Mr McInerney's ability to lead the organisation, and had terminated his employment agreement effective immediately.
What the ICAC inquiry is examining
The ICAC inquiry is examining allegations that Mr McInerney arranged and approved political donations – channelled through CSNSW to lobbying companies linked to a religious-right faction of the NSW Liberal Party known as the Reformers – that were not properly declared and may have exceeded caps set under NSW electoral funding law.
The practice, commonly known as branch stacking, is not itself illegal, but the alleged non-disclosure and cap breaches are the focus of the Commission's concern.
Mr McInerney, appointed as CSNSW's inaugural chief executive in 2017, had already stood aside from the role earlier this year after being named in the inquiry. Over three days of evidence, he maintained that payments totalling roughly $265,900 over four years were for genuine consulting work.
He also told the Commission he had performed a factory reset on his work phone and iPad, a move counsel assisting the inquiry, Peggy Dwyer SC, characterised as a deliberate attempt to remove evidence – a characterisation Mr McInerney disputed, saying he had not been trying to conceal anything relevant to the probe.
Board cites deep concern despite no findings against the organisation
The board was careful to distinguish between the organisation and its former chief executive. It noted that counsel assisting had told the inquiry there was no suggestion CSNSW itself was responsible for the conduct being examined, nor that board members or executives were aware of Mr McInerney's alleged actions.
Even so, the board said the matters raised were "of deep concern" to CSNSW and its stakeholders, and confirmed it would support an externally conducted review of the organisation's operations.
Interim chief executive Peter Yates will continue in the role while a permanent replacement is sought.
In a statement provided to media on Friday, Mr McInerney said he had prioritised the position of the organisation over his own and had therefore stood aside when the inquiry began, adding that he remained grateful for the opportunity to have served CSNSW.
Why it matters for education leaders
For a governance sector already under scrutiny over funding transparency, the sacking underscores how quickly a leadership crisis can escalate once a corruption inquiry names a sitting executive – a dynamic education boards and school governing bodies more broadly should watch closely, particularly around conflicts of interest and political engagement by senior staff.
NSW electoral law sets clear disclosure obligations and donation caps for any organisation making political contributions, obligations that extend to peak bodies such as CSNSW regardless of their non-profit status.
The ICAC inquiry continues, with further witnesses scheduled to give evidence in the coming weeks.