CFMEU South Australia’s financial mess in lead up to March state election

Financial documents show how the CFMEU drained its coffers to help Labor win the March state election.

THE South Australian branch of the CFMEU plunged itself into debt and had to be bailed out after splurging on staff, travel costs and promotional items in the lead-up to the state and federal elections.

Financial reports show the militant union ran up a huge deficit of more than $450,000 for the year to March 31, while its total liabilities exceed assets by more than $660,000.

It triggered a bailout from the national union and the takeover by the John Setka-led Victorian branch.

Senior interstate CFMEU official Rebel Hanlon actively campaigned on behalf of the SA branch in the federal election campaign. He featured on social media platforms posing with senior Labor figures, including the now-PM Anthony Albanese and Penny Wong, later Foreign Affairs Minister.

CFMEU official Rebel Hanlon campaigning with senior Labor figures, including (Prime Minister) Anthony Albanese and (Foreign Affairs Minister) Penny Wong, during the federal election campaign. Picture: Facebook/ Supplied

Premier Peter Malinauskas, who is under fire over the union’s $125,000 donation to the party, is facing fresh criticisms from the Opposition that he was elected with the help of the CFMEU’s “most notorious cronies”.

“The SA branch of the CFMEU went for broke to make Peter Malinauskas Premier and now it seems they also literally went broke to put the former union boss in charge of the state,” acting Opposition Leader John Gardner said. Labor state secretary Aemon Bourke confirmed “all affiliated unions” were contacted to support the state election campaign “with volunteers and polling booths and donations”.

Showing an expanded influence in SA, the CFMEU spent an extra $300,000 on “employee expenses” over the year, shelling out $1.5m.

The SA branch also tripled its travel and accommodation costs, climbing to $54,619 for the year, while “posting, printing and stationery” more than doubled to $73,373. Costs for “promotional items” ballooned by more than $36,000 to hit nearly $58,000.

It also splashed out on motor vehicle expenses and leasing – spending a combined $93,337, which was $53,000 more than the previous year.

Premier Peter Malinauskas is facing criticism over the CFMEU’s influence in the Labor Party. Picture: NCA NewsWire / Picture Emma Brasier

National secretary Dave Noonan said the union complied with all reporting requirements and that its SA members supported the new leadership plans.

“The SA members’ support is crucial to the branch’s future; the shrill and ill-informed opinions of News Corp (the owner of this publication), the Liberal Party and Master Builders Australia are not,” he said.

Mr Malinauskas deferred questions to Mr Bourke, who said: “thousands of people, from all walks of life” led to the success of the state election campaign.”