Catholic Schools NSW chief Dallas McInerney investigated for misusing funds

The Independent Commission Against Corruption (ICAC) has opened an inquiry into Catholic Schools NSW, focusing on chief executive Dallas McInerney. Evidence presented to the commission alleges McInerney diverted $165,000 of the organization’s public funding into undeclared political donations to Liberal Party factional allies.

The inquiry also uncovered that staff members of Catholic Schools NSW were allocated to partisan work. One employee, Dylan Whitelaw, was hired without a formal process and spent a significant portion of his time on projects labeled “Dallas projects,” which supported the right‑wing Liberal “Reformers” faction. Another staffer, Robert Assaf, was reported to have performed little school‑related work while concentrating on Liberal Party activities. The investigation links the scheme to broader allegations involving developer Jean Nassif and the NSW Liberal Party.

Catholic Schools NSW runs 600 diocesan schools serving about 270,000 students and receives nearly $4 billion annually from federal and state governments. Taxpayers and parents have expressed outrage at the alleged misuse of funds intended for education.