Former CFMEU head John Setka approved $29k pay rise for ex SA boss Marcus Pare, investigation hears

A new report into the scandal-plagued CFMEU has heard evidence former head John Setka signed off on a controversial $29,000 pay rise to a union boss who police say was a former bikie.

New links between the CFMEU and bikies have been revealed in a report that shows a union boss maintained contact with prominent members of the Rebels, the Finks and the Mongols.

The report, for the union’s administrator Mark Irving KC, is part of an investigation into the construction union’s former South Australian assistant secretary, Marcus Pare.

Mr Pare is being probed over a range of issues including lavish spending on credit cards, whether he authorised his own pay rise, and workplace agreement deals.

The new report reveals police testimony in court that Mr Pare was once a “member or associate” of the New Boys gang, that he advocated for a former Finks member to be a union delegate, and helped get a job for that former bikie’s mother.

Marcus Pare (left) has claimed John Setka signed off on a $29,000 payrise. Picture: Instagram

Mr Pare is being probed over a range of issues including lavish spending on credit cards. Picture: Instagram

The report, by barrister Chris Kummerow, says that shortly after administrators were called into the embattled union last year — partly due to revelations underworld figures had infiltrated the CFMEU Victorian branch — Mr Pare transferred contacts of prominent Rebels and Mongols bikies from his union phone to his personal device.

“Those associations do not seem to accord with what would be expected by a senior union employee,” Mr Kummerow says.

The associations were revealed after Mr Pare, through his lawyer, told investigators: “My client has never been a member of the ‘New Boys’ street gang. My client does not consider himself an associate of the ‘New Boys’”.

Investigators then opened up phone and email records to check his evidence.

Before administrators took over at the CFMEU, Mr Pare was the most senior official in the South Australian branch, which was under the control of the Victorian division led by John Setka.

The investigation into Mr Pare was sparked after it was revealed he spent almost $100,000 on his union credit card over a 12 month period, including on a holiday to New Zealand – which he later paid back.

Among other lavish spending was a $2714 dinner with unnamed officials in Sydney that included 27 espresso martinis, at a time his branch was struggling financially.

John Setka resigned from the CFMEU amid allegations it was infiltrated by bikies. Picture: Nicki Connolly

The new report shows that, through lawyers, Mr Pare rejected allegations he gave himself an unauthorised pay rise and should pay back almost $29,000, saying the salary bump was approved by Victorian union boss John Setka and Victorian president, Rob Graauwmans, to align his package with that of Victorian organisers.

He said Mr Graauwmans had also discussed with him a plan to upgrade the fleet of South Australian union cars from Toyota Klugersto Ford Rangers, which is why he bought a $78,000 Ranger using union funds.

Mr Kummerow said Mr Pare’s explanations were “barely credible” and had no evidence but that even if true, the fact his pay rise and car purchase never went through a committee of management as required under legislation meant “Pare illegally and improperly obtained a salary increase”.

“Pare’s version is that he asked Mr Setka and Mr Graauwmans to break the law and ignore the rules, and they agreed to do so. That may be a weak moral defence, but it is no legal defence,” it says.

A report by the CFMEU administrator has uncovered new links between the union and bikie gangs. Picture Martin Ollman

Mr Pare’s defence of using a union credit card to pay for a holiday to New Zealand was that the resort did not accept his personal card for payment at check-out.

However, the resort policy was that payments were made at least 14 days before check-in, and Mr Kummerow was scathing in his criticism of Mr Pare’s conduct.

“His failure to acknowledge, or apologise for, his conduct sheds light on the type of leader he was, as well as his disregard of his responsibilities and legal obligations,” the report says.

When answering questions about extravagant credit card spending at restaurants in Adelaide and across the country, Mr Pare said through his lawyer that “from time-to-time others used the credit card to pay for work related expenses” and that he couldn’t say for sure who had used it at various times.

His lawyer, from Wearing and Blairs, said Mr Pare was following union practice of entertaining at high-end restaurants.

“It would have been disrespectful to take them somewhere cheap,” he says in the report.

“My client was taught that it was respectful when entertaining to provide guests with a decent meal.”

Mr Pare slammed the report in response, labelling it “political rubbish”.

“... I take none of these attacks on me personal even though some days it does affect my mental health, but I’m grateful to God I have some good friends and family around me and that’s all that matters right now,” he said. 

Originally published as Former CFMEU head John Setka approved $29k pay rise for ex SA boss Marcus Pare, investigation hears