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CFMEU official attends key Labor meeting, sparking political influence fears

By Nick McKenzie, Kieran Rooney and Broede Carmody
Updated

The official employed by Victoria’s scandal-plagued CFMEU to represent its political affairs is still attending meetings of the state Labor Party’s key oversight and governance body, six weeks after Premier Jacinta Allan ostensibly suspended the union from the ALP.

The appearance of CFMEU campaigns officer Lisa Andrew at Thursday’s meeting of the Victorian ALP’s Administrative Committee has alarmed party insiders, with concerns the construction union is continuing to exercise political influence.

The CFMEU rally in Melbourne drew an estimated 50,000 to the city streets on Tuesday.

The CFMEU rally in Melbourne drew an estimated 50,000 to the city streets on Tuesday.Credit: Jason South

Four ALP sources, who sought anonymity because they were not authorised to speak about party affairs, said in light of the scandal engulfing the CFMEU, Andrew should have recused herself from the 20-person committee.

The committee has the power to make key decisions for the party about governance and administration.

Andrew has previously represented the CFMEU’s political interests via Labor’s industrial Left faction and, according to two sources, appeared “very active” in the party’s internal affairs on Thursday.

One ALP source said Andrew’s appearance showed “the CFMEU are not taking their administration seriously” and was still attempting to influence factional negotiations and membership recruitment.

Premier Jacinta Allan received the interim review on Thursday. It was tabled in parliament Friday.

Premier Jacinta Allan received the interim review on Thursday. It was tabled in parliament Friday. Credit: Justin McManus

A second source said it was an “awful look” in light of Allan’s suspension of the CFMEU, but noted that because they were banned from future state and federal Labor conferences their influence was neutered.

The conferences hold mass votes to influence the party’s policy platform.

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Andrew was not among those stood down by administrators and no allegations have been made against her. She was elected to her position by delegates at state conference, which is made up of representatives from the CFMEU, other affiliated unions and rank-and-file members.

Another Labor source defended her position, saying she was elected as a member of the party “like everyone else”.

A spokesperson for the premier said the CFMEU employee’s attendance was a matter for the party.

“At the request of the Victorian government, the national executive of the Australian Labor Party has banned donations from the CFMEU’s construction division and suspended the division from the Victorian Labor Party,” the spokesperson said.

Greg Wilson is leading the review.

Greg Wilson is leading the review.

Andrew’s decision to attend the committee is in contrast to the CFMEU’s national secretary Zach Smith, who remains on the ALP’s national executive but has distanced himself from its deliberations.

The CFMEU was suspended from the ALP at state and federal level after a months-long investigation by The Age, The Australian Financial Review and 60 Minutes into illegal and unethical behaviour at taxpayer-funded Big Build worksites.

As well as prompting the Albanese government to force the union into administration, the revelations also led Allan to commission a report by former Department of Justice secretary Greg Wilson.

On Friday, Wilson’s interim report identified key issues in the sector and said his final review would consider stronger powers for corruption investigators and improvements to how the state received complaints.

He also flagged looking into tougher rules on subcontracting and labour hire arrangements and better practices around selecting health and safety representatives, union delegates and right-of-entry permit holders on sites.

The Building Bad investigation revealed a convicted criminal and bikie figure was appointed as a CFMEU health and safety official at one of Victoria’s Big Build projects, a role only discovered by police when he was shot at the Rebels bikie clubhouse.

Wilson said the review had been made aware of cases where people wanted to complain about conduct on a building site, but couldn’t find the right body to do so.

The review will also consider whether a single complaints scheme should be set up across Victorian construction projects, providing a “single gateway” for problems.

“There is not a simple ‘one-stop shop’ for any allegation related to government-funded construction projects,” the report says.

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“The current landscape is confusing, with multiple state and federal entities responsible for investigating complaints about different types of conduct.

“One person described approaching 10 entities over two years, including state and federal bodies and major contractors, and being unable to find anyone who could deal with the issue they were raising.

“To feel confident to complain, people need to know where they can complain, that their complaint will reach the right place, and that there is a body with sufficient power to follow-up complaints to ensure they have been dealt with appropriately.”

In July, this masthead revealed that both Prime Minister Anthony Albanese and Allan were in 2022 separately sent detailed evidence that CFMEU officials were threatening extreme violence on state and federal-funded projects.

It took Allan, Victoria’s then deputy premier, a year to reply.

Wilson will also consider whether the scope of integrity agencies should be expanded to allow them to better investigate corruption on government worksites.

“Victoria’s integrity agencies do not have a role in investigating allegations of corrupt behaviour between private bodies, unions and private individuals of the kind that has led to this review,” the interim review states.

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“The review acknowledges that any reform in this area would give rise to challenging legal questions, and that potentially expanding any integrity agency’s remit would create more competing priorities for that agency’s existing resources. However, the review considers that the question merits further discussion.”

A final report is due by late November.

Allan said in a statement that her government would take time to consider the interim report.

“We commissioned this report to help us tear a rotten culture out by its roots, and we thank Mr Wilson for his detailed work on it.”

But Opposition Leader John Pesutto labelled the government’s response a farce.

“Victorians deserve to know the extent to which bikies and organised criminals have infiltrated major projects, how this was allowed to occur, who is responsible and how much it has cost taxpayers,” Pesutto said.

“This report has been set up by Premier Allan in a way that does not answer these questions and is unable to do so.”

Greens integrity spokesman Tim Read said his party had long called for the Independent Broad-based Anti-corruption Commission, Victoria’s anti-corruption watchdog, to be given greater powers.

“We urgently need to bring our watchdogs into line with the rest of the country and give them the teeth to investigate corruption properly.”

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Original URL: https://www.smh.com.au/politics/victoria/integrity-agencies-could-be-given-broader-scope-to-investigate-construction-sector-20240830-p5k6kk.html