Catholic schools rort was a ‘running joke’. You won’t hear parents or taxpayers laughing

Taxpayers and parents of the 270,000 students enrolled in Catholic schools across New South Wales face a growing sense of outrage after revelations emerged during a major corruption inquiry on Tuesday. Evidence presented suggested widespread misuse of public funds and a pattern of political favoritism within Catholic Schools NSW, an organization responsible for distributing government grants to diocesan schools. The inquiry, conducted by the Independent Commission Against Corruption (ICAC), has exposed allegations of financial misconduct involving high-ranking officials and ties to the NSW Liberal Party. These findings have sparked demands for accountability from both the public and private sectors. The investigation began earlier this month when the ICAC disclosed that Dallas McInerney, the former chief executive of Catholic Schools NSW, was under scrutiny as part of a broader probe into the relationship between the NSW Liberal Party and fugitive developer Jean Nassif. McInerney, described as a key figure in the Conservative movement and a favored associate of Archbishop Anthony Fisher, led the organization for nearly a decade. During his tenure, he reportedly leveraged the substantial budget of Catholic Schools NSW, estimated at over $4 billion annually from federal and state governments, to employ Liberal Party operatives. This practice raised serious concerns about the allocation of public resources. Among those implicated is Dylan Whitelaw, a former employee of Catholic Schools NSW who testified at the inquiry. He was hired directly by McInerney in 2019 without undergoing any formal application process. According to Whitelaw, McInerney recognized his potential and offered him a position, possibly influenced by their prior involvement in local Liberal Party activities. At the time, McInerney served as the president of the Mittagong branch of the Liberal Party, while Whitelaw held the role of secretary. During his time at Catholic Schools NSW, Whitelaw was assigned to tasks referred to internally as “Dallas projects.” These projects were linked to the ambitions of a group of right-wing Liberal members known as the Reformers. Another individual associated with the Reformers, Robert Assaf, was also employed by Catholic Schools NSW. From his desk, Whitelaw observed Assaf's work habits and noted that approximately 60 percent of his time was devoted to advancing the interests of the Reformers rather than fulfilling duties related to Catholic education. This situation reportedly gave rise to a casual remark among colleagues, referring to Assaf's minimal engagement with Catholic educational matters and his focus on Liberal Party activities. However, such remarks are now viewed as trivial compared to the gravity of the allegations against the organization. The financial implications of these actions are profound, considering that Catholic Schools NSW receives nearly $4 billion annually in public funding, which constitutes roughly 80 percent of the sector’s total revenue. Additionally, the organization generates over $550 million through school fees paid by families. The inquiry has also uncovered claims that McInerney directed $165,000 in funds to individuals affiliated with the Reformers over several years. These allegations suggest a deliberate effort to support political agendas using resources meant for educational purposes. Furthermore, Whitelaw indicated that James Tudehope, a manager at Catholic Schools NSW, was aware that Assaf was not consistently engaged in legitimate work for the organization. Tudehope, currently residing in New Zealand, has refused to cooperate with the ICAC investigation. His father, Damien Tudehope, a Liberal Member of Parliament, is scheduled to appear before the commission in the near future as part of Operation Rosny. As the inquiry continues, the spotlight remains firmly on the intersection of politics and education within the Catholic school system. The revelations have prompted calls for transparency and reform, emphasizing the need for rigorous oversight to prevent further misuse of public funds. With the stakes so high, the outcome of the ongoing investigation will determine whether justice can be served for those affected by these alleged misdeeds.