A key person of interest in a NSW corruption probe has admitted to wiping his work phone and iPad, despite knowing the devices may have held messages significant to the inquiry.
Sidelined Catholic Schools NSW (CSNSW) CEO Dallas McInerney told the NSW Independent Commission Against Corruption (ICAC) he performed a factory reset on the devices over the weekend, insisting he did so because his bank account had been compromised through his Apple ID and Apple Pay.
Mr McInerney stood aside temporarily as head of CSNSW after the ICAC announced it was investigating whether the organisation made donations, arranged and approved by him, that were not declared, exceeded the legal limit, and were used for Liberal Party recruitment and/or membership renewal.
Mr McInerney told the hearing on Wednesday National Australia Bank (NAB) alerted him that his accounts had been "proactively" blocked over transactions linked to an unknown offshore merchant.
Under questioning from counsel assisting the commission, Peggy Dwyer SC, Mr McInerney acknowledged that no one, including his bank, advised him to perform the factory reset on the phone.
He also said he did not speak to his solicitors or CSNSW about the reset or the implications of performing one.
Dr Dwyer: "Mr McInerney, it'll be a matter for the commissioner, but can I suggest that is a transparent attempt by you to wipe evidence that would have been critical for this commission?"
Mr McInerney: "My answer to that is that this inquiry has been going for almost seven weeks… Had I wanted to do any malfeasance of that nature, I would have had quite a runway to do that…"
The revelation of the reset came after he was asked to produce messages between him and Liberal Party operatives at the centre of the inquiry.
When pressed about whether he realised it would wipe any other relevant messages between them, he replied: "I knew what I was doing. The factory reset is a factory reset."
Mr McInerney had already given two days of evidence last week and was aware he would be required to appear before the inquiry again on Wednesday.
Dr Dwyer asked why he only revealed the information hours into his third day of evidence. He said he had not been asked about it by the commission.
Dr Dwyer: "Mr McInerney that is just too cute, can I suggest to you, to suggest that you were genuinely being forthcoming to this commission. You have hidden the fact that you have wiped those devices to determine whether it will come out in evidence."
Mr McInerney: "I've been only forthcoming with my cooperation for this commission."
Mr McInerney also told the probe he returned both devices to CSNSW after wiping them, even though CSNSW had not asked for them.
The ICAC is examining alleged illegal political donations, branch-stacking, and disguised payments involving figures in the NSW Liberal Party, CSNSW, and property developer Jean Nassif.
Mr McInerney separately conceded it was unlikely he would return to CSNSW.
'Hume Forum' fundraising
The commission also heard lobbyists Christian Ellis and Jeremy Greenwood, both subjects of the investigation, were allegedly involved in fundraising for a political body linked to the federal Opposition Leader Angus Taylor.
Counsel assisting said they were fundraising for the 'Hume Forum', a body that has raised funds for the federal electorate of Hume, Angus Taylor, and the Liberal Party.
Mr Taylor has held the seat in southern NSW since 2013.
Mr McInerney, who is a close friend and factional ally of Mr Taylor, told the commission he attended events by the Hume Forum but was not a member.
The hearing also examined messages between Mr McInerney and Mr Ellis in late 2019 and early 2020 where the pair discussed "pestering" Mr Taylor to arrange a meeting.
Earlier in the inquiry, it heard messages that Mr McInerney wanted to "shake down Angus for 10k" to fund the NSW Reformers, a ring-wing Liberal faction at the centre of the probe.
Another message claimed Mr McInerney had secured a $15,000 donation from Mr Taylor, along with monthly $3,000 payments.
Mr McInerney has acknowledged seeking financial support from Mr Taylor but rejected the suggestion it was for the Reformers.
He said he instead obtained "in-principal support" from Liberal figures for conservative candidates, disputing that a deal was secured with Mr Taylor.
Mr Taylor has repeatedly denied making any payment and is not accused of wrongdoing.
He has also repeatedly refused to answer any questions about his friendship with Mr McInerney.
The commission is also examining allegations that people linked to the Reformers sought money from prohibited donors and concealed political donations through companies and 'sham' invoices as part of efforts to build factional influence.
