CFMEU Qld president Stephen Smyth to face court over funds ‘misuse’

The Queensland president of the CFMEU will face the Federal Court accused of spending member funds on personal expenses.

CFMEU Queensland president Stephen Smyth is to face the Federal Court accused of using union funds on home plumbing, personal dental costs, driver’s licence renewal, car hire while on annual leave in the US, and travel and meals for himself and his family.

Civil proceedings were started today by the Registered Organisations Commissioner, Mark Bielecki.

Mr Bielecki alleges that in his role as the most senior officer of the Queensland district branch, Mr Smyth regularly used the district branch’s funds for personal purposes not related to his employment, and which he was not authorised to incur.

“Where Mr Smyth disclosed that expenditure as personal, he had it added to an unauthorised loan he took from the district branch that was not in writing and did not incur any interest,” the commission said in a statement.

The Sunday Mail and Courier-Mail exposed Mr Smyth’s alleged CFMEU credit card spending in a series of articles in 2017.

Mr Bielecki said the decision to commence Federal Court proceedings follows a complex four-year investigation by the Registered Organisations Commission.

The commission alleges in court documents that Mr Smyth breached his officers’ duties under sections 285, 286 and 287 of the Fair Work (Registered Organisations) Act 2009 by incurring about $6700 in personal expenditure using district branch funds across more than 80 transactions during the 2015-16 financial year.

CFMEU Queensland president Stephen Smyth

The commission said the investigation followed an auditor’s report of the CFMEU branch’s financial statement where the auditor could not verify that all credit card expenses were incurred solely for business purposes.

Under the Act, the commissioner must investigate serious defects, irregularities, deficiencies, failures or shortcomings identified in a qualified auditor’s report.

In a statement the commission said the proceedings raise important questions about whether senior officers of registered organisations are entitled to rely on their own authority to regularly use members’ money to fund personal expenditure.

“It is important that officers of registered organisations meet the requisite standards of good financial governance when performing their duties,” the statement said.

The duties placed on officers under the Act encourage high standards of accountability and are central to the good governance and effective operations of registered organisations.

Members of registered organisations are entitled to be confident that senior officials are accountable and will spend members’ money on matters that are in the best interests of members.

Therefore, there is a public interest in bringing these proceedings.

The commissioner is seeking the making of declarations and the imposition of civil penalties on Mr Smyth.

The CFMEU was contacted for comment.