SA Premier demands Labor gives back CFMEU election donation

The Labor leader says a $125,000 boost to his party’s election war chest will be paid back or donated, as he labelled vandalism attacks on the cars of construction workers “criminal”.

A controversial construction union donation to South Australia’s Labor Party will be repaid or donated to charity, Premier Peter Malinauskas has ruled.

Drawing the line in the sand after weeks of controversy, the state Labor Party will perform a U-turn and hand back the $125,000 CFMEU donation.

His intervention also emerged after Master Builders Association cars were vandalised and had CFMEU stickers placed on them on Friday.

On Monday morning, Mr Malinauskas told ABC Radio Adelaide the vandalism was the “exact behaviour he would not tolerate”.

“We weren’t going to jump the gun unfairly but I think that what occurred on Friday night is a demonstration of exactly the sort of thing that we don’t think is appropriate and that’s why I made this decision,” he said.

SA Premier, Peter Malinauskas. Picture: Matt Loxton

“Of course what occurred on Friday … in respect to the MBA vehicles constitutes a criminal act and that should be subject to police investigation and I understand it ultimately will be.”

The decision came days after the John Setka-led Victorian branch of the CFMEU formally took control of the SA branch, in a unanimously endorsed decision of local members.

A snap emergency meeting of the party’s executive will be called on Monday, during which the senior body of MPs, union officials and rank and file members will ratify the decision to return the funds.

It is increasingly likely the money will be returned rather than donated to a third party, such as the Mates in Construction charity.

The Premier is unlikely to attend due to prior commitments and under party rules cannot send a proxy to vote on his behalf.

Screenshots of a video taken inside the CFMEU SA meeting, with John Setka in attendance. Picture: CFMEU SA / Facebook

John Setka. Picture: Jake Nowakowski

Sources said as an election is not due for another three years, the party had time to restructure budgets and returning such a donation was not “catastrophic”.

In a statement to The Advertiser on Sunday, Mr Malinauskas said: “I have made it clear that I will not stand by and accept inappropriate behaviour in the SA Construction sector.

“Upon hearing of the incident involving the MBA, I wrote to the ALP State Secretary asking him to pay back the CFMEU construction branch’s donation to the party – either to the CFMEU or to a charity.

“This kind of behaviour cannot be accepted in South Australia. We have long enjoyed a relatively stable industrial environment, with business and unions working together.

“As Premier, I expect this collaborative approach to continue.”

ALP state secretary Aemon Bourke said the Premier had written to him requesting the donation changes.

“State executive will be convened as soon as practicable,” he said.

It is understood the vandalism issue “triggered” the decision after the Premier spoke with MBA boss Will Frogley and Treasurer Stephen Mullighan at a lending initiative launch on Sunday. Mr Setka is not accused of having any role in the vandalism.

Damage to Master Builders Association cars, including a broken windscreen wiper. Pictures: supplied

Damage to Master Builders Association vehicle including a CFMEU sticker placed on a car. Pictures: supplied

During the event, Mr Malinauskas had flagged potential changes to his public position, which had resisted calls to repay the money until Sunday.

“I’ve been very clear about this and rather strongly … that we do not welcome any thuggish, or bullying behaviour coming across the border from Victoria, into South Australia, whether it be in the construction sector or others,” he said.

“We’re alive to keeping our options open.

“If we see evidence, that the Victorian branch takeover of the South Australian branch of the CFMEU, that manifests itself in unacceptable behaviour, then we will act.”

Mr Frogley on Sunday confirmed damage to his cars, including a damaged windscreen wiper, and that police will be called in, but declined to comment further.

Another MBA field car had a CFMEU sticker stuck on it without permission.

The MBA building, which is located a short distance from the CFMEU in the south of Adelaide’s CBD, will have added security.

Will Frogley from Master Builders in Newton, with Mr Malinauskas and Treasurer Stephen Mullighan. Picture: Matt Loxton

The opposition, and Mr Setka’s estranged wife, Emma Walters, have called for the $125,000 CFMEU donation to Labor be handed over to a domestic violence charity.

But senior Labor sources said such a move was challenging.

“We don’t see it as a John Setka donation, it is hard working construction union members money and it would be pretty hard to give it a third party, no matter how worthy they are,” one source said.

Opposition Women spokeswoman Michelle Lensink on Sunday condemned the Premier.

“Peter Malinauskas must apologise for his disgraceful comments on domestic violence last week,” she said.

“I raised legitimate concerns about Labor’s links to the CFMEU and the $125,000 donation and was totally dismissed because Peter Malinauskas thought it was all a ‘little cute’.

“Now days later he’s promised to hand back the money, but the damage is done.

“Peter Malinauskas had to be dragged kicking and screaming to this point and it is seriously alarming that it has taken weeks for him to realise the error of his ways.”

Mr Setka has rejected the allegations of condoning any form of bullying and stressed the CFMEU does not tolerate domestic violence or on-site bullying.

A CFMEU spokesman had no immediate comment.