The former NSW secretary of the CFMEU should be pursued for criminal charges after more than $3 million of union members’ money was transferred to pay legal fees for him and his son, a report has found.
Anti-corruption expert Geoffrey Watson, SC, also recommended the CFMEU start legal action to recover the “astonishing” sum of up to $890,000 paid to Darren Greenfield and his son Michael for the defence of their bribery charges.
Former NSW CFMEU secretary Darren Greenfield.Credit: James Brickwood
The 41-page report, released on Thursday, was ordered by union administrator Mark Irving, KC, after the NSW branch transferred $3.15 million to law firm McGirr and Associates in July 2024, two days after the Albanese government forced the CFMEU into administration.
“It is common ground that the [money] was intended to cover the further legal expenses being incurred by [Greenfield] and his son,” Watson wrote in his report.
The report found at the same time $500,000 was put aside to defend the administration.
“It is remarkable that, at this time of apparent crisis, the Greenfields were receiving this kind of specifically preferential treatment,” said Watson.
“Darren Greenfield knew that important funds were being paid for his benefit, when they could have been used elsewhere for the benefit of the members,” the report found.
The Greenfields were charged with criminal corruption offences in September 2021. This masthead has previously reported Darren Greenfield allegedly accepted money in return for union backing of a construction company.
Watson noted in his report that both Darren and Michael Greenfield maintained their innocence.
A lengthy investigation by this masthead in 2024 revealed allegations of corruption and that the CFMEU more broadly had been infiltrated by organised crime.
“The NSW divisional branch resolved, in effect, to give an unlimited indemnity to the Greenfields in respect of their legal expenses,” Watson wrote.
“In the instance of Darren Greenfield, the [alleged] contraventions … warrant his prosecution on criminal charges for recklessly failing to discharge his duties in good faith and using his position dishonestly with the intention of directly gaining advantage for him and his son.”
Of the $3.15 million, Irving has recovered all but $43,000 from McGirr for the NSW branch.
Watson also recommended civil charges be brought against the Greenfields, the CFMEU’s former NSW branch president Rita Mallia, and assistant secretary Rob Kera for breaching their financial management responsibilities to the union.
“The union is entitled to recover several hundreds of thousands of dollars from [the quartet] for the damage which they caused,” Watson wrote.
A CFMEU spokesperson confirmed that Mark Irving had received Watson’s report.
“He will provide the report to those affected before deciding whether to refer the matter to the Fair Work Commission and the police for prosecution,” the spokesperson said.
Start the day with a summary of the day’s most important and interesting stories, analysis and insights. Sign up for our Morning Edition newsletter.