Top CFMEU figure sacked over construction company ‘bribes’

A powerful CFMEU boss recently promoted to help with the clean-up of the embattled construction union has been sacked after this masthead uncovered allegations he was involved in a range of suspected corrupt dealings.

The sacking on Thursday afternoon of John Perkovic – in response to evidence uncovered by a major investigation by this masthead and 60 Minutes – plunges the CFMEU’s administration into crisis and raises major questions for the Albanese government, which 15 months ago vowed to clean up the scandal-ridden building union.

Former CFMEU official John Perkovic.

Perkovic faces serious allegations that he obtained a range of undisclosed benefits from construction companies he was meant to oversee as a senior union official.

In July, Perkovic was promoted by CFMEU boss Zach Smith, effectively becoming the second most senior official in the CFMEU’s Victorian branch, which is the most powerful arm of the union nationwide.

At the time, this masthead reported that Smith’s elevation of Perkovic had sparked deep division in the union movement and broader industry.

Perkovic was previously deeply embedded within the former CFMEU regime of John Setka, who resigned from the CFMEU following allegations of corruption and gangland ties that the administration had been appointed to combat by the Albanese government in August 2024.

But in July, the administration brushed off concerns about Perkovic, with industry sources, speaking on the condition of anonymity, saying he had convinced Smith he was committed to the reform of the union and was loyal to Smith’s leadership.

The sacking of Perkovic, given his influence in Victoria’s construction sector, may lead to industrial unrest and places a major question mark over the competence of the administration, which is led by barrister Mark Irving, KC.

Irving said in a statement that Perkovic had been dismissed “for accepting a series of bribes and other secret benefits from employers in the construction industry”.

Irving said there was compelling evidence, including work emails, about the misconduct.

There were also admissions that “he and members of his family received monetary and non-monetary benefits from labour hire and other construction figures”.

CFMEU administrator Mark Irving.Credit: Joe Armao

“[He] has not been able to provide any acceptable explanation about the benefits. Mr Perkovic’s position at the union is therefore untenable,” he said.

“The acceptance of bribes or secret favours is never acceptable.”

Irving said that the companies involved had been referred to the Labour Hire Authority and the police and, as a result of his dismissal, he would not be able to stand in any future union election unless he convinced the Fair Work Commission that he was a fit and proper person.

Perkovic was contacted for comment.

Arrests of alleged extortion

The revelations about Perkovic come with a separate but major development in the building industry involving an unrelated investigation by Victoria Police’s construction sector crime taskforce.

The taskforce has swooped on an alleged organised crime cell over allegations it subjected a major building firm to a terrifying extortion campaign, including demands for $6.6 million in payments to secure union peace.

Detectives from Taskforce Hawk arrested three men on Thursday morning, charging them with extortion and other offences over a series of demands they allegedly made to building company Pace Development Group.

The latest arrests do not involve the CFMEU, although the accused men are suspected of using a concocted threat of union pressure, and a claim they had already and could further reduce industrial disputation, to demand the payments from Pace.

One of the men facing charges is self-styled industrial relations fixer Amir Teymoori, 45, of Melbourne. Teymoori is accused by police of falsely claiming to Pace that he had negotiated with the CFMEU last year to reduce union interference on its projects.

Pace is a major building company that has built more than100 projects across Victoria, including apartment towers and commercial buildings.

It has a history of tension with the CFMEU, although this has softened significantly over the past 18 months.

The arrests mark a significant milestone for the taskforce, which was launched in March after fresh revelations by this masthead’s Building Bad series about entrenched organised crime and corruption in the construction sector and the failure of law enforcement agencies, regulators and the CFMEU to combat it.

Taskforce Hawk detectives make an arrest on Thursday.Credit: Victoria Police

In a statement, a police spokesperson said detectives would allege that the arrested trio “falsely claimed to have acted as mediators between the company and union officials, purporting to have negotiated on their behalf to prevent disruptions at the company’s building sites”.

“The company was then sent an invoice for $6.6 million and allegedly extorted.”

The three accused men, including Teymoori, were bailed to appear at Melbourne Magistrates’ Court on October 28.

The arrests are the second major recent operational development for Taskforce Hawk. In September, the taskforce arrested three men over a series of firebombings and attacks on the family homes and machinery owned by construction company directors.

Taskforce Hawk detectives make an arrest on Thursday.Credit: Victoria Police

Those attacks are suspected to have been directed by an organised crime syndicate whose key players are still operating.

“Taskforce Hawk is focused on assessing new intelligence and evidence relating to allegations of criminal behaviour linked to the construction industry,” the police said in a statement provided to this masthead.

“It also continues to proactively target organised crime associated with the sector, including a focus on any individuals employed within the construction industry who have known links to outlaw motorcycle gangs.

“Police are also instigating approaches with relevant industry stakeholders to gather intelligence, as well as working closely with a range of law enforcement partners, regulators and government authorities.”

For two decades, gangland identities in Melbourne and Sydney have pressed building firms for payments in return for the promise of securing them CFMEU support on their building sites.

Police urged anyone with information about the construction sector or the alleged crimes that are before the court to contact Crime Stoppers on 1800 333 000 or submit an online confidential report at www.crimestoppersvic.com.au

For more read The Age this weekend and watch 60 Minutes on Sunday night.