Taxpayers and parents of the 270,000 students in Catholic schools across NSW all have good cause to be disgusted by the evidence of financial abuse and breathtaking entitlement aired during a major corruption inquiry on Tuesday. They also have a right to demand answers.

The church has been in the crouch position ever since the Independent Commission Against Corruption revealed this month that Catholic Schools NSW chief executive Dallas McInerney was being investigated as part of a broader probe into the NSW Liberal Party’s relationship with fugitive developer Jean Nassif.

McInerney, a Liberal powerbroker and favourite ideological son of conservative Archbishop Anthony Fisher, has ruled the governing body for 600 diocesan Catholic schools for nearly a decade, often achieving significant results for the sector.

But we now know, from evidence given at the inquiry, he was also allegedly using this position – and the charity’s hefty budget – to hire Liberal operatives who would then use huge chunks of their time in the office working on a scheme to stack branches across Sydney with more conservative members.

One such apparatchik, Dylan Whitelaw, was hired straight out of school, no application or interview required. “I asked him for the help and he probably saw a young kid that he could bring under his wing,” Whitelaw claimed of his May 2019 hiring by McInerney. It probably didn’t hurt that McInerney was the president of the Mittagong wing of the Liberal Party when a teenage Whitelaw became the branch’s secretary.

Whitelaw eventually spent part of his time while in the Catholic Schools NSW office assigned to “Dallas projects” – a code he and others used for work that involved supporting the ambitions of a group of right-wing Liberal members known as the Reformers.

Another member of the Reformers, Robert Assaf, was also employed by Catholic Schools NSW. Whitelaw said he had a good view of Assaf’s computer screen from his desk, and estimated perhaps up to 60 per cent of his time in the office was spent on building up the Reformers.

“I remember there being a bit of a joke at the time about how Rob did very little Catholic schools work and he did Liberal Party work,” Whitelaw told the hearing. “It became a bit of a running joke.”

Running joke? It might be a joke to entitled, jumped-up infants like Whitelaw. But it is no joke for taxpayers who prop up Catholic Schools NSW, or parents who pay fees to send their children to its schools.

NSW Catholic schools receive nearly $4 billion a year from the Commonwealth and NSW governments, accounting for almost 80 per cent of the sector’s income. Catholic Schools NSW distributes that funding each year for the diocesan school system. It also raises more than $550 million in school fees. The evidence at the ICAC suggests such an important organisation has at times operated as a frat house for Liberal dudes to pursue their political ambitions.

If the money used to hire Whitelaw and other cronies came from taxpayer contributions, it may constitute a breach of the NSW Education Act. If the money came from fees, parents have been helping to prop up a Liberal Party branch stack in potential breach of the NSW Electoral Act. Neither option is good.

In addition to Catholic Schools NSW’s questionable employment history, McInerney is also accused of funnelling $165,000 of its funds to Reformers figures over a number of years.

Whitelaw said at Tuesday’s hearing that a manager at Catholic Schools NSW, James Tudehope, knew Assaf was not always doing legitimate work for the organisation. Tudehope is in the sights of ICAC but is in New Zealand and has declined to assist their inquiry. He is the son of Liberal MP Damien Tudehope, who will be called before Operation Rosny in coming weeks.

Whitelaw told Tuesday’s hearing he now recognises the hirings represented a financial contribution to the Reformers. “At the time I wouldn’t have thought that,” Whitelaw, 25, insisted. “On reflection, and with a bit of maturity in the workplace that I’ve had over the last few years, I would suggest yes.”

His evidence contradicted earlier statements he gave to a NSW parliamentary inquiry in which he denied any knowledge of money being sought for branch-stacking activities.

Whitelaw is now employed by the State Emergency Service as a flood rescue and operations co-ordinator. His participation in a scheme which abused taxpayer funding raises serious questions about his future at the SES.

McInerney is yet to have his turn in the witness box, and may well deny the allegations and dispute Whitelaw’s evidence. But as it now stands, Tuesday’s testimony is devastating to McInerney personally and for the church more broadly.

The great risk for the Catholic Church is that the brazen behaviour which appears to be on display at the ICAC triggers a broader examination of its books. There have long been questions over whether every cent of taxpayer funds is used for legitimate educational purposes. While an extreme scenario, the worst case for church leaders would be a full-blown audit which results in its education arm losing charitable status and tax exemptions.

This is not about Catholic bashing; it’s about transparency and accountability. One question ICAC might not ask – but which taxpayers and parents should – over the coming weeks, is this: will any politician in power stand up and ask the church for a “please explain”? God knows it’s warranted.

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