Construction, Forestry, Mining and Energy Union secret deal with ALP

GOVERNMENT orders a review into a secret lease signed off by the former Labor government for a Sydney skyscraper.

THE Abbott government has ordered a review into a secret multi-million dollar lease signed off by the former Labor government for a Sydney skyscraper linked to the construction union at the centre of bombshell corruption claims.

Special Minister of State Michael Ronaldson said taxpayers would be deeply concerned if "some grubby deal" had been done between the former government and the Construction, Forestry, Mining and Energy Union over the 23-year lease to house new parliamentary offices at 1 Bligh St in Sydney's CBD.

But the Labor opposition and building part-owner Cbus defended the Gillard government's selection process for the building, insisting it was chosen by the Finance Department after a 15-month assessment process and had then been approved by the parliamentary public works committee.

The Commonwealth leased several floors in 2011 to house Sydney-based MPs, including the Prime Minister and cabinet members of the day as a replacement to the previous premises at 70 Phillip St.

The Bligh St property is 33 per cent owned by Cbus Property, a subsidiary of Cbus, with the parent company board featuring several CFMEU officials such as national secretary Dave Noonan.

According to Cbus, the CFMEU is one of its shareholders and one of its sponsoring organisations, holding three of out of 16 trustee positions and the same proportion of class-A shares, with a guiding principal that all profits go to super fund members.

Mr Ronaldson yesterday said the lease was legally binding and could not be broken without significant cost. He said he had asked for a review of the negotiations and "the involvement of the CFMEU".

Cbus chief executive David Atkin said Cbus Property had a separate board and management to Cbus, saying it rejected characterisations of Cbus as the CFMEU's super fund.

"The co-owners engage independent, external professionals to source and negotiate lease terms with prospective tenants at 1 Bligh Street," Mr Atkin said.

"It is our understanding … that the relevant department also engaged independent, external professionals to source office space and negotiate lease terms on behalf of the government.

"We completely reject any assertion ... that business undertaken by Cbus or Cbus Property lacked full probity."

Leasing experts estimated the rent at 1 Bligh St to be more than $1000 per square metre and Phillip St about $400 to $600 a metre.

Mr Noonan, who did not return calls, was listed as a board member of Cbus Property in its annual report.

MORE BUSINESSES INVESTIGATED IN BARANGAROO SCANDAL Yoni Bashan

A SECOND company that secured a workplace agreement with the CFMEU has been linked to the same business address as several companies investigated by police for their links to organised crime, a murdered standover man and a convicted terrorist.

The scaffolding company, Elite Holdings Workforce, is located at the same address as several enterprises caught up in the Barangaroo bribery and money laundering scandal.

In October last year the company signed an Enterprise Bargaining Agreement with the Construction, Forestry, Mining and Energy Union, listing its address in Strathfield South.

Khaled Sharrouf (L) with his lawyer Simon Joyner leaving Local Court at Bankstown in 2011.

Hells Angels bikie Zeljko Mitrovic and Derek Wainohu in a court sketch.

The same address is where Active Labour Hire, the company at the centre of controversy at Barangaroo, and another company with a similar name, Elite Group Solutions, are located.

Elite Group Solutions was run by standover man Vasko Boskovski, who was gunned down outside his home at Earlwood in July last year - the murder remains unsolved.

His company has been cited by police as having "known connections" to significant underworld figures in Sydney and Melbourne.

MAN WHO BLEW WHISTLE HAD DEATH THREATS

Mr Boskovski was also one of three directors running a separate company, KGBV Investments, whose two other directors are convicted terror plotter Khaled Sharrouf - released from jail in 2009 - and former Comanchero bikie Bilal Fatrouni.

Fatrouni is the right-hand man to controversial business identity George Alex, who was yesterday banned from setting foot on the Bangaroo site by its principal contractor, Lend Lease.

Mr Alex is at the centre of the controversy enveloping Barangaroo because of his links to characters associated with organised crime.

Earlwood shooting victim Vasko Boskovski

His company was granted an enterprise bargaining agreement with the CFMEU and was allowed to keep it despite falling behind on payments to workers totalling up to $1 million.

Sources at Barangaroo have told The Daily Telegraph that Mr Alex and his former right-hand man Joe Antoun - who was gunned down last year and was in business with Boskovski - were involved in activities at the site.

"According to our records Mr Alex has never been on the Barangaroo South site and we have no intention of providing him with access," a Lend Lease spokesman said.

Mr Alex previously made headlines after the death of his former business partner, Hells Angels bikie Zeljko "Steve" Mitrovic.

The pair had a business together, Pony Red Pty Ltd. They fell out during an attempt to buy a property together in a deal that soured.

A caveat was put on Mitrovic's home by Mr Alex's company, City Nominees, in April 2011.

It was withdrawn days before Mitrovic was shot dead on January 15 at his Wetherill Park trucking business.

'Legitimising the money'

Two men have been charged over the murder - there is no suggestion Mr Alex had any involvement in the death.

The Daily Telegraph also revealed yesterday that a major Sydney organised crime figure is suspected of using a company working on the Barangaroo site last year to launder drug money.

Large amounts of money were put into the business to assist with paying workers and buying supplies, underworld sources said yesterday.

However authorities believe the purpose of supplying the money was to have it legitimised and then returned out of the profits from the completion of the lucrative building contracts.

The saga at the Darling Harbour worksite has fuelled calls for the re-establishment of the Howard Government's Building and Construction Commission and the widening of a royal commission into the Australian Workers' Union to include the allegations at Barangaroo.

The Business Council of Australia is backing calls for a royal commission.

"These latest allegations also highlight the time has come for a wideranging investigation into corruption and criminal conduct by officials in some of Australia's key unions so that union members and the community more broadly can have confidence in governance and accountability arrangements," the council's Chief Executive Jennifer Westacott said.

However the president of the Australian Council of Trade Unions, Ged Kearney, said there is no need for any royal commission.