Catholic Schools NSW Sacks CEO Dallas McInerney Amid ICAC Probe

Catholic Schools NSW has sacked chief executive Dallas McInerney, a key person of interest at the Independent Commission Against Corruption inquiry.

ICAC is investigating allegations he potentially broke NSW donation laws via sham invoices to a right-wing Liberal Party faction.

During his third day of evidence, Mr McInerney also admitted to wiping his work phone and iPad, telling the commission, "I knew what I was doing".

Catholic Schools NSW (CSNSW) has sacked chief executive Dallas McInerney, days after he appeared before a state corruption watchdog inquiry.

Mr McInerney is a key person of interest in the NSW Independent Commission Against Corruption (ICAC) investigation.

The inquiry is examining allegations that he potentially broke NSW donation laws by directing hundreds of thousands of dollars through sham invoices to a right-wing Liberal Party faction known as the NSW Reformers.

Mr McInerney had temporarily stood aside as head of CSNSW after ICAC announced it was examining whether the organisation made donations that were arranged and approved by him, were not declared, exceeded legal limits, and were used to recruit Liberal Party members or renew existing memberships.

CSNSW has funding authority for over almost 600 Catholic schools across the state.

In a statement, the CSNSW board said it unanimously determined that it had lost confidence in Mr McInerney's ability to "lead the organisation into the future" and had therefore terminated his employment.

"Counsel Assisting the Commission stated that there was no suggestion that CSNSW is responsible for the alleged conduct being investigated by the Commission, nor that any CSNSW Board or executive were aware of the alleged actions of Mr McInerney," the board said.

"The matters that are the subject of the Inquiry are, though, of deep concern to CSNSW and to its key stakeholders."

On Monday, Mr McInerney conceded it was unlikely he would return to CSNSW.

During his third day of evidence, Mr McInerney also admitted to wiping his work phone and iPad, despite knowing the devices could contain messages relevant to the inquiry.

"I knew what I was doing. The factory reset is a factory reset," Mr McInerney told the commission.

He said nobody instructed him to perform a factory reset and that he had not consulted his lawyers or CSNSW about the implications of doing so.

Mr McInerney also told the probe he returned both devices to CSNSW after wiping them, despite the organisation not having asked for their return.

Counsel assisting the commission, Peggy Dwyer SC, labelled his actions as a "transparent attempt" to destroy evidence.