Dallas McInerney, the head of Catholic Schools NSW, has been dismissed from his position following a damaging appearance before the Independent Commission Against Corruption (ICAC). The inquiry is investigating alleged Liberal party corruption.

An ICAC inquiry is raising questions over whether taxpayer funds were used in alleged illegal political donations by Catholic Schools NSW to the Liberal party, highlighting the need to ensure public money is spent for approved purposes.

The chief executive of Catholic Schools NSW, Dallas McInerney, testified at an Icac corruption inquiry that Christian factional groups were 'spectacularly unsuccessful' in their attempt to take over the NSW Liberals, driven by a sense of 'calling' and 'duty'.

Evidence presented at an Icac hearing suggests that members of a Liberal group received 'kickbacks' from a lobbying company's contract with Catholic Schools NSW.