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CFMEU mining division has questions raised by auditors over credit card spending

UPDATE: PREMIER Annastacia Palaszczuk would not be drawn on whether the former Newman Government’s union disclosure laws would be reinstated following the latest CFMEU revelations.

Members who contacted <i>The Courier-Mail</i> urged union chiefs to make the credit card statements available for perusal by members.
Members who contacted The Courier-Mail urged union chiefs to make the credit card statements available for perusal by members.

AN INDEPENDENT auditor has raised questions over the use of credit cards by union ­executives in the Queensland branch of the CFMEU mining division.

In his report, Jason Croston, of SRJ Walker Wayland, said credit card expenses totalled $721,116 for the financial year ending June 30, 2016.

“We are unable to obtain sufficient appropriate evidence to verify that the credit card expenses that have been included as business expenses in the union’s annual financial statements have been incurred solely for business purposes,” Mr Croston said.

The report was signed off by branch president Stephen Allan Smyth and secretary Timothy David Whyte in December last year. Mr Smyth, who is on annual leave, did not return calls yesterday.

Mr Whyte said: “We are not going to comment at this stage.

“We are comfortable with the auditor’s report and will respond to any accusations in the media when they come out.”

Members who contacted The Courier-Mail urged union chiefs to make the credit card statements available for perusal by members.

Mr Croston also revealed the branch posted a loss of $2.7 million last year.

He blamed the loss on “ongoing declining membership”, legal settlements totalling $525,000, campaign costs associated with black lung and declining cash interest rates. He said membership fees accounted for $9.65 million in revenue compared with $10.34 million the previous year.

The rorting of union credit cards sparked a Royal Commission in 2014. Commissioner Dyson Heydon, a former High Court judge, made adverse findings against the CFMEU construction division and other unions.

The Palaszczuk Government used its final parliamentary sitting week for the year last December to reverse a Newman government requirement for union bosses to publish credit-card statements.

However, that law has yet to take effect, acting Industrial Relations Minister Shannon Fentiman said on Monday night.

Premier Annastacia Palaszczuk would not be drawn on whether her government would reinstate the laws, following the latest revelations.

But she said both unions and business should have to comply with the current laws in place.

“I understand that the auditor has been looking at some of these matters,” Ms Palaszczuk said.

“Everybody should be compliant.

“I don’t think it’s just unions here. The standards should apply to all businesses as well.”

Original URL: https://www.couriermail.com.au/news/queensland/cfmeu-mining-division-has-questions-raised-by-auditors-over-credit-card-spending/news-story/ba55c842582c257647a621af5655c82a