‘Dumb as dogshit’: McInerney’s texts about federal MP read onto record

By Bevan Shields

Catholic Schools NSW boss Dallas McInerney called a federal MP “dumb as dogshit” despite claiming that he was a big supporter of her work.

McInerney, a right-wing factional powerbroker within the NSW Liberal Party, was shown messages from 2020 in which he said Melissa McIntosh, the member for the western Sydney seat of Lindsay, also had the “penmanship of a junior high schooler”.

McInerney was responding to a letter McIntosh wrote to voters in April 2020 in which she expressed support for frontline workers dealing with the COVID-19 outbreak.

“Today we have hope for our community that no matter how dark things feel, we act together in kindness, support, and in spirit,” McIntosh wrote.

11.18am

McInerney often discussed ‘political machinations’ with consultant

By Jessica McSweeney

Peggy Dwyer is now running through text messages exchanged between Dallas McInerney and Christian Ellis, the Liberal Party factional operator who was contracted to provide government relations work for Catholic Schools NSW.

McInerney was shown texts at the end of 2019 and early 2020 showing he was heavily engaged in internal Liberal Party matters, and discussed this with Ellis.

Some of the text messages refer to the pair trying to set up a meeting with Angus Taylor. McInerney told Ellis he was “pestering” Taylor “big time” to facilitate the meeting.

Dwyer suggested there was little evidence on McInerney’s phone of him discussing Catholic Schools NSW work with Ellis, but the pair often discussed Liberal Party “political machinations”.

McInereny earlier told the commission he handed his work phone back to Catholic Schools NSW this past weekend. He has stood aside from his role as CEO while the ICAC is investigating.

10.45am

‘Only really your word’: McInerney challenged on lack of written evidence

By Jessica McSweeney

Dallas McInerney is being asked now about what written evidence exists to prove Beckington, the consultancy firm run by Liberal Party apparatchik Christian Ellis, had done any work to justify a contract with Catholic Schools NSW.

McInerney has repeatedly told the commission that Beckington, mostly through Ellis, did work for Catholic Schools NSW through meetings and verbal advice. He provided two documents which were sent by the schools body to Beckington which he said were borne from discussions with the consultancy firm, which he said was proof of genuine work.

Counsel assisting Peggy Dwyer, SC, suggested to McInerney that there were no substantive changes made in the two documents he provided to the commission to demonstrate work Beckington did.

The only others who could definitely attest to the work done at these meetings were Ellis, who is living in the UK, and former Catholic Schools staffer James Tudehope, who is in New Zealand and has declined to appear before the commission, the ICAC heard.

“You have made yourself available in these proceedings, and it’s only really your word, isn’t it, that the commissioner can go on that any of these meetings actually took place discussing the strategic plan. Is that right?” Dwyer asked.

“Sure,” McInerney said.

10.19am

Ninety minutes or most of the day?

By

Catholic Schools NSW chief executive Dallas McInerney has produced new material to the inquiry over the weekend, which may influence how long he’ll appear as a witness today.

Counsel assisting Peggy Dwyer, SC, has taken over questioning and when she revisited evidence addressed last week, McInerney’s lawyer Amelia Avery-Williams interrupted.

“This has been covered. I understand there might be some reason to go back over it, but can I just ask, given that we were told the witness would be required only for an hour and a half this morning, perhaps that things that have already been covered be dealt with swiftly or not at all?”

Fabian Gleeson, SC, the presiding commissioner, acknowledged the concern but said McInerney had produced new material which was relevant.

“I understand what you’ve said. Counsel assisting has heard your criticism, and we’ll try and see if we can continue and get … get through this,” Gleeson said.

Dwyer added: “Through junior counsel, it’s been communicated that Mr McInerney is expected to take most of the day.”

10.07am

McInerney shown texts outlining political ambitions

By Jessica McSweeney

The public hearing has begun with questions about Dallas McInerney’s political ambitions, including his desire to fill a Senate seat for the Liberal Party.

He was shown text messages between himself and Jeremy Greenwood, the lobbyist he awarded a lucrative Catholic Schools NSW contract to, in March 2023 – shortly after a NSW parliamentary inquiry had unsuccessfully sought to call Greenwood as a witness.

In one text, McInerney says: “that’s me f---ed with the kiss of death”, relating to an article quoting Liberal powerbroker Michael Photios about what counsel assisting Peggy Dwyer, SC, described as “a fair bit of love and friendship” between left and right factions in the party.

Greenwood and McInerney go on to talk about potential political tickets for McInerney, and other movements in the Liberal Party.

“So up until that time, that is March 2023, you were doing a significant amount of work, weren’t you, to try and achieve that goal of going into parliament?” Dwyer asked.

“No.”

8.26am

Analysis: Dallas McInerney’s first week in the witness box

By Bevan Shields

For all that is said about Dallas McInerney – and a lot is said from both haters and boosters – nobody has ever called him an idiot. In his dual roles as Catholic Schools NSW chief executive and Liberal Party powerbroker, McInerney has proved a formidable, ruthless and highly intelligent tactician.

What the state’s corruption watchdog is wondering, though, is whether he has been too clever by half. At its simplest, the Independent Commission Against Corruption believes he has abused his position at Catholic Schools NSW and potentially broken donation laws by directing hundreds of thousands of dollars towards a conservative Christian branch-stacking operation. The schools body was also a cushy landing pad for political mates who needed jobs.

By mixing business with political pleasure he has found himself in the spotlight, rather than the shadows where he prefers to operate. McInerney’s appearance before the ICAC is a body blow for a man who has had more influence over the education of millions of Catholic school students than any other person for a decade.

McInerney will return to the witness box on Wednesday for a fresh set of questions. His two days of evidence last week featured plenty of embarrassing moments and curiously vague answers. But the ICAC is yet to produce a smoking gun that definitively proves he orchestrated or knew of the scheme. Based on what we know, prosecutors may be far from convinced that this is a slam-dunk case of electoral fraud.

8.22am

Who is giving evidence this week

By Jessica McSweeney

After a four day break the ICAC returns today with a final day of evidence from Catholic Schools NSW CEO Dallas McInerney, who has denied any wrongdoing.

Tomorrow the commission will move on to evidence from former fair trading minister Eleni Petinos and her former chief of staff Cassandra Lawry. The commission previously heard phone taps in which Jean Nassif claimed to have significant influence over the previous Coalition government, and bragged that the fair trading portfolio would be taken over by one of his “girls”.

Petinos would take over the position shortly after that phone call in a cabinet reshuffle. By July 2022, one of Nassif’s enemies David Chandler resigned as NSW building commissioner after an investigation into his conduct ordered by Petinos’ office.

Petinos is not a person of interest in this inquiry.

On Friday former Baulkham Hills MP David Elliott will give evidence. He is not accused of wrongdoing – the commission is investigating if Liberal Party apparatchiks worked to damage Elliott’s political career at the behest of Nassif.

The commission previously heard evidence that the Reformers, the factional group working to stack branches with religious conservatives, had developed a “shit-sheet” with damaging rumours and stories about Elliott.

8.11am

What we covered last week

By Jessica McSweeney

Hello and welcome to another week of public hearings in the ICAC’s Operation Rosny, investigating allegedly unlawful political donations from fugitive property developer Jean Nassif and Catholic Schools NSW, among others, to support Liberal branch stacking activities.

I’m state political reporter Jessica McSweeney, and along with a team of the Herald’s senior writers, we’ll be bringing you all the news as it happens from the hearing room.

Jeremy Greenwood, a key figure in this inquiry, paid for his friend Jean-Claude Perrottet to flee to Fiji during a 2023 parliamentary inquiry into illegal donations in the Hills Shire. Perrottet, Greenwood, Christian Ellis and others went to extraordinary lengths to avoid being summonsed to appear before that inquiry, including hiring private security.

Dallas McInerney has repeatedly denied consultancy contracts he held with Beckington and later JPG advisory, both companies linked to persons of interest in the inquiry, were to support Liberal Party branch stacking. He said the contracts were for genuine government relations work.

He denied ever asking Angus Taylor for donations to support the Reformers, the factional group involving Ellis and Jean-Claude Perrottet, despite texts from Reformers indicating he secured Taylor’s backing. Taylor has denied ever making payments.

The commission made a rare public plea for key person of interest Christian Ellis to make himself available to the ICAC. Jeremy Greenwood passed on a message from his friend indicating he did want to cooperate, but counsel assisting Peggy Dwyer, SC, said offers had been made to support a video link with Ellis in the UK but the ICAC has not heard back. “If Mr Ellis is listening, the commission waits for his response,” presiding commissioner Fabian Gleeson, SC, said.