# Catholic Schools NSW corruption inquiry

> Live situation record from CLSTR: https://clstr.news/situations/catholic-schools-nsw-corruption-inquiry
> Updated: 2026-08-21T00:35:05.000Z. Sources: 10. Developments: 4.

The Independent Commission Against Corruption (ICAC) launched an inquiry, known as Operation Rosny, into Catholic Schools NSW regarding the alleged misuse of public funds for political purposes.

Initial investigations focused on allegations that CEO Dallas McInerney diverted $165,000 in public funding toward undeclared political donations for Liberal Party factional allies. The inquiry also examined claims that staff members were assigned to partisan work, including an employee hired for projects supporting the Liberal ‘Reformers’ faction.

As the investigation progressed, McInerney stepped aside from his role to appear before the commission as a witness. During a two-day inquiry on August 13 and 14, McInerney denied allegations that organization funds were used to support Liberal Party factional activities. He specifically addressed payments made to the Beckington Group, totaling approximately $130,000 between August 2019 and August 2021, asserting they were for ‘genuine public affairs and government relations services.’ While McInerney acknowledged his interests aligned with the Liberal Party’s ‘Reformers’ during 2020 and 2021, he maintained that Catholic Schools NSW funds were not used for political recruitment.

Following his testimony, Catholic Schools NSW terminated McInerney, who had led the organization for nearly ten years. The scope of the investigation has since expanded, with investigators alleging McInerney may have violated donation laws by diverting up to $265,000 in school funding to Beckington and JPG Advisory through ‘sham invoices.’ Investigators claim these funds supported ‘The Reformers’—a conservative Christian sub-faction of the Liberal Party aiming to recruit 5,000 members—via kickbacks and direct payments. Additionally, McInerney has been accused of destroying evidence relevant to the inquiry.

## Timeline

### 2026-08-21: Catholic Schools NSW sacks CEO Dallas McInerney

Catholic Schools NSW has sacked CEO Dallas McInerney following ICAC allegations that school funds were diverted via sham invoices to support a conservative Liberal Party sub-faction.

4 sources. https://clstr.news/cluster/catholic-schools-nsw-sacks-ceo-dallas-mcinerney

### 2026-08-17: Catholic Schools NSW chief denies political funding allegations

Catholic Schools NSW CEO Dallas McInerney denied during an ICAC inquiry that organization funds were used to support Liberal Party factional activities and recruitment.

5 sources. https://clstr.news/cluster/catholic-schools-nsw-chief-denies-political-funding-allegations

### 2026-08-12: Catholic Schools NSW CEO appears at ICAC corruption inquiry

The ICAC is investigating whether Catholic Schools NSW contracts were used to disguise political donations to the Liberal Party, with CEO Dallas McInerney appearing as a key witness.

5 sources. https://clstr.news/cluster/catholic-schools-nsw-ceo-appears-at-icac-corruption-inquiry

### 2026-07-28: Catholic Schools NSW chief Dallas McInerney investigated for misusing funds

ICAC probe finds Catholic Schools NSW chief Dallas McInerney funneled $165k of public school funds into undeclared Liberal Party donations and used staff for partisan work, sparking taxpayer outrage.

2 sources. https://clstr.news/cluster/catholic-schools-nsw-chief-dallas-mcinerney-investigated-for-misusing-funds

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Cite as: Catholic Schools NSW corruption inquiry. CLSTR, https://clstr.news/situations/catholic-schools-nsw-corruption-inquiry