KordaMentha appointed to probe Qld CFMEU for corrupt activity

The CFMEU’s direct line to the Industrial Relations Department has been cut off with the militant union now forced to call a 1300 number instead.

KordaMentha will review alleged breaches of law by the CFMEU.

The government has “hung up” on the CFMEU, cancelling the union’s direct line to the Office of Industrial Relations, Deputy Premier Jarrod Bleijie has announced.

It comes as administrator Mark Irving KC hired specialist forensic firm KordaMentha to investigate the alleged corruption, fraud and links to bikies within the Queensland CFMEU.

Industrial Relations Minister Mr Bleijie said the government stood ready to assist investigations.

“I can advise today the Queensland Government will fully participate and provide whatever documentation is necessary to KordaMentha and the administrators on the CFMEUQ, which is a registered industrial organisation in Queensland,” he said.

“I have stopped the special hotline arrangement, the CFMEU had directly into the Office of Industrial Relations, where they would have special treatment in terms of workplace complaints against construction, construction workers or builders in Queensland.

“It’s not on … the CFMEU doesn’t deserve a ‘Bat-Phone’ to the Office of Industrial Relations, they will go through the 1300 number like every other Queenslander.

“We have hung up the phone on the CFMEU.”

Claims about the CFMEU were aired by Nine News.

Cybersecurity and forensic experts within independent firm KordaMentha will be tasked with reviewing alleged breaches of law by the CFMEU, including links to bikie gangs and organised crime syndicates.

A list of directives provided to KordaMentha by administrator Mark Irving, and obtained by The Courier-Mail, outlines the scope of the investigation.

They include identifying whether former staff misused their positions or powers, if CFMEU delegates received or offered unlawful kickbacks, identifying any illegal fund transfers between individual members or union branches, as well as claims of unlawful use of charity trusts to move money, bribery and the overall financial viability of the union branch.

An insider said KordaMentha will also largely focus on threats, intimidation and bullying within the union.

Union members have been assured they can report issues anonymously via the secure platform Elker.

“There will be investigations into threats against union leaders, including women,” they said.

“The administration has emailed all staff outlining the whistleblower policy and has established a secure platform for complaints and information, ensuring complaints can be made anonymously.”

The involvement of outlaw motorcycle gangs in the construction industry, whether on behalf of the CFMEU or indirectly as a third party, will also form part of the investigation, as will “any other matter related to corruption and criminal activity in the construction sector”.

It comes after a Nine News investigation in July found the CFMEU’s Victorian and Tasmanian construction and general division had been infiltrated by underworld crime figures, triggering the resignation of Victorian state secretary John Setka.

There was no suggestion Setka engaged in wrongdoing.

An internal inquiry was then launched examining allegations of corrupt conduct including organised crime, threats and intimidation, enterprise bargaining agreements being treated as commodities, undemocratic appointment of officials and illegal money transactions resulting in the Victorian branch being placed under administration.

The scandal brought the wider CFMEU under the microscope and ultimately led to the federal government’s decision to force all branches into involuntary administration, including Queensland.

Landmark federal laws designed to overhaul the national CFMEU construction and general division under a three-year administration were passed in the Senate in August.

General Manager of the Fair Work Commission Murray Furlong was tasked with heading the administration process, appointing Mark Irving KC as administrator for the Queensland branch.

There is currently no evidence of illegal activity within the Queensland CFMEU.

Additional directives given by Mr Irving, seen by The Courier-Mail, include the requirement for KordaMentha to provide a preliminary investigation report by December 3.

“If necessary, I am able to exercise certain coercive powers to assist your investigation,” Mr Irving wrote.

“Your investigation and report will allow me to determine whether there have been any breaches of the law and if so, how I should deal with such breaches.”

A full report will be handed to Mr Irving by March 31.

To make a report to the administrator via Elker, click here.

INVESTIGATION WILL REVIEW THE FOLLOWING:

The involvement of outlaw motorcycle gangs and those connected with organised crime in industrial relations in the construction industry, whether on behalf of the CFMEU, on behalf of employers or as third parties;

Whether former staff breached their fiduciary obligations, including their obligations not to misuse their positions, to declare conflicts of interest, and not to act in their own self-interest when exercising any of their powers;

Whether unlawful ‘kickbacks’ and secret benefits of any kind were offered by employers to CFMEU staff connected with industrial relations, and the receipt of such benefits;

The use of ‘charity’ trusts and similar arrangements in the conduct of industrial relations within the CFMEU and the state registered union, and the extent to which that conduct may have contravened laws, involved undisclosed conflicts of interest, involved the misuse of the position, and resulted in the union failing to act in the best interests of the members;

The movement of funds, members and employment between the Federally registered Branch and the State Registered union and the financial viability of the branch should the State Registered union be deregistered;

Claims of menacing behaviour, violence and threats of violence by or against those involved in industrial relations in the construction industry, including conduct by and against delegates, organisers and others; and

Any other matter related to corruption and criminal activity in the construction sector.