Key facts
- Teachers' union calls for increased scrutiny of Catholic school funding.
- Catholic Schools NSW CEO Dallas McInerney testified at an Icac inquiry.
- The inquiry investigates alleged misuse of funds for Liberal party factional work.
- Lobbying firms received over $265,000 from Catholic Schools NSW.
- McInerney denied allegations of a 'sham arrangement' for political funding.
The union representing teachers in New South Wales has called for increased oversight of funding for Catholic schools, following allegations that public funds may have been improperly used to support political factional activities. Dallas McInerney, the chief executive of Catholic Schools NSW, testified before the NSW Independent Commission Against Corruption (Icac) on Friday, denying claims that payments to lobbying firms constituted a "sham arrangement" to fund the Liberal party's Reformers faction.
Icac is investigating whether McInerney approved illegal donations from the governing body for 600 Catholic schools to aid the Reformers' alleged branch stacking efforts, aimed at promoting conservative policies. The inquiry heard that Catholic Schools NSW paid Beckington, a lobbying company run by Christian Ellis and Jeremy Greenwood, $130,900 between August 2019 and August 2021. Greenwood's company, JPG Advisory, received $135,000 between December 2021 and December 2023. The commission also heard that Reformers members Robert Assaf and Dylan Whitelaw allegedly spent work hours on factional activities while employed by Catholic Schools NSW.
Carol Matthews, secretary of the Independent Education Union NSW/ACT branch, stated her deep concern over allegations that public funding for Catholic schools might have been wrongly spent on Liberal party matters. She emphasized the need for closer scrutiny of organizations like Catholic Schools NSW, which receive public funds on behalf of non-government schools, regardless of the Icac findings.
Approximately 80% of the funding distributed by Catholic Schools NSW originates from state and federal governments, totaling about $3.8 billion in 2024. NSW Premier Chris Minns has stated that an independent audit of the governing body will not occur while the Icac inquiry is ongoing. McInerney had previously stood aside from his CEO role to allow Catholic Schools NSW to continue its mission.
During his testimony, McInerney was questioned about messages concerning a meeting with Ellis and Jean-Claude Perrottet, brother of former NSW premier Dominic Perrottet, to discuss money. McInerney denied that the arrangement was a sham to funnel money to them and could not recall the meeting. He also rejected previous evidence suggesting he met with Assaf to discuss their summons. The inquiry previously heard that Jean-Claude Perrottet received money from Beckington, and allegedly a kickback from JPG Advisory after securing the contract with McInerney.
McInerney described Jean-Claude Perrottet as his "conduit" to Greenwood. He also addressed Dylan Whitelaw's involvement in negotiating retainer increases and his departure from Beckington. McInerney had previously cited Whitelaw's expertise as a reason for the contract with Beckington. He explained Whitelaw's role as an account manager involved understanding the client and relationships. McInerney met Whitelaw through a Liberal branch and employed him in 2019 after he graduated high school.
Earlier in the week, McInerney described correspondence regarding Beckington's ABN as "traditional due diligence." On Friday, it was revealed that the ABN belonged to Ellis's sister. McInerney expressed he was "happy to be enlightened" when questioned about the effectiveness of the due diligence. The inquiry also heard that Beckington incorrectly wrote Catholic Schools NSW's name on invoices and that written evidence of Beckington's work was minimal, though McInerney insisted they contributed to two forward planning documents.