CFMEU administrator scrambles to seize back Setka’s $1 million slush fund

The Albanese government’s union reform boss is fighting a brazen move by former CFMEU bosses John Setka and Ralph Edwards to seize control of a $1 million election slush fund as part of a suspected plot to wrest back control of the powerful union once it exits administration.

Corporate filings reveal Edwards, a retired CFMEU national president, moved the official office of the Building Industry 2000 fund from union and administration headquarters to his home address in Coburg in April.

Former CFMEU leaders Ralph Edwards (left) and John Setka.Credit: Aresna Villanueva

The fund has been identified in previous royal commissions as a “slush” account used by the union’s former ruling regime to fund their candidates seeking election as CFMEU bosses, or in local government, state and federal elections.

Edwards shifted the Building Industry 2000’s “principal place of business” to his home address nine months after the appointment of CFMEU administrator Mark Irving, KC. The move highlights the ongoing struggle facing the Albanese government in bringing the union, and all of its assets, under control.

The development comes as the federal government faces a growing attack by the opposition over Labor’s CFMEU clean-up amid revelations of the corruption of a union boss promoted in July by Irving’s administration, who was only to be sacked last week after this masthead exposed the official’s rampant alleged graft.

In a separate development highlighting fresh concerns about rampant organised crime involvement in the building industry, this masthead has also obtained a confidential statement prepared by Setka describing multiple “serious” threats made by bikies to his safety.

Setka, who is attempting to secure a large worker compensation payout, has also claimed his stress was so acute that he was triggered by watching episodes of The Sopranos in which a fictional mob boss breaks down in front of a psychologist.

Edwards transferred the slush fund to his home address without the administration being notified and midway through an aggressive campaign by Edwards and Setka – who are the two directors of the fund – to undermine the administration and force the union to hold elections.

Elections would allow the pair to potentially campaign for their own candidates. The most recent corporate records filed by Edwards and Setka are from 2020, when the fund had net assets of $920,068.

Edwards is a key campaigner behind the Construction Industry Support Association, which is fighting the Albanese government’s decision to place the CFMEU into administration in July last year and in response to revelations the union had been infiltrated by organised crime and corruption under Setka’s years-long stint as its top official.

The Building Industry 2000 fund controls a bank account with an estimated $1 million, giving Edwards and Setka a potential political war chest that could be used to propel themselves or their allies into power once the administration calls for a union election.

Edwards has publicly advocated for fresh elections to oppose the administration’s actions.

After Irving discovered the fund had been moved without notice to Edwards’ personal property a fortnight ago, he launched an urgent investigation, issuing the bank which holds the estimated $1 million in funds with a notice to produce records.

On Monday, Irving used his powers to issue notices to Setka and Edwards to explain their involvement in the fund.

CFMEU administrator Mark Irving, KC.Credit: Joe Armao

Irving is 15 months into a five-year appointment, and while he could theoretically recommend the union exit administration, he has indicated to the government that the administration should run its full term.

Financial records previously filed by the fund describe its purpose as “providing benefits to the Construction, Forestry, Mining and Energy Union (CFMEU) members”, who have donated money to it via union fund-raising events.

Edwards refused to answer questions when contacted by this masthead on Monday, while Setka responded via text message with an obscenity.

The revelations come as this masthead obtained a statement Setka prepared in December to support his worker compensation claim over his alleged post-traumatic stress disorder stemming from his work leading the CFMEU.

Despite repeatedly publicly playing down allegations of bikie infiltration of his union, Setka’s statement reveals he was told in July last year by the Echo “anti-bikie taskforce … that they had become aware of threats against me”.

“I wasn’t given a lot of detail but it was suggested that I take some precautions in respect of my safety,” Setka recalls in his statement.

His statement also describes previous “serious threats made against me [Setka] … by some bikie gangs”.

“I remember Ralph Edwards, the national secretary, telling me we needed to involve the police. I found a letter on my desk threatening to kill me ... they were going to be waiting outside of the car park and shoot me,” he said.

“We had had ongoing issues over times with various groups trying to infiltrate the union, during which I made it clear to my guys that they had to be careful not to give these groups an in.”

The character Tony Soprano (right) and his psychiatrist Jennifer Melfi in a scene from The Sopranos.Credit: HBO

Despite his at-times dismissive attitude towards reports of bikie infiltration of his union and the broader industry, Setka’s statement suggests he held grave concerns for his safety.

“I am the leader of the toughest union in the country and under attack and couldn’t be seen to show any weakness,” his statement says.

“I’d watch The Sopranos and see Tony Soprano go and see a psychologist and no one could know or he’d be killed. It was like I had to live up to the image that had been created when some days I just wanted to go home and cry.”

Setka also describes the stress of being charged with blackmail (in a criminal case that ultimately collapsed) and dealing with violent building worker protests outside CFMEU headquarters during the pandemic in 2021.

After anti-vax protesters attacked the union headquarters, the CFMEU called in its toughest delegates and officials, including bikie gang members and boxers, to charge the protesters.

“They had frozen cans of drink they [the protesters] were hurling at us and the other protesters, we had to retreat back into the office,” Setka said in his statement.

“My legs were shaking. I couldn’t believe what was going on – we had to barricade ourselves in and get a bunch of our delegates, reinforcement, to come in through the back.”

Setka’s statement also describes the immense personal toll of attending to the horrific scene of the 2013 collapse of a wall outside a building site in Melbourne’s CBD.

Setka was a first responder to the collapse, which killed three pedestrians.

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