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Menzies Research Centre challenges links between Maurice Blackburn and CFMEU

The Menzies Research Centre is suggesting the federal corruption watchdog examine the appropriateness of nearly $900,000 in payments made by law firm Maurice Blackburn to the CFMEU

Former CFMEU Victoria boss John Setka. Picture: Roy VanDerVegt
Former CFMEU Victoria boss John Setka. Picture: Roy VanDerVegt

Menzies Research Centre chief executive David Hughes has suggested the National Anti-Corruption Commission examine the appropriateness of nearly $900,000 in payments made from law firm Maurice Blackburn to the CFMEU since 2019.

Maurice Blackburn, which says the payments are commercial sponsorships and not donation, became the union’s lawyer of choice after Victorian secretary John Setka dumped Gordon Legal in August 2019.

At the time, the law firm said it was “proud to be taking on this role”.

Mr Setka resigned abruptly this month in the wake of allegations of misconduct made against him and the union. Union figures have estimated that up to 20 CFMEU delegates in Victoria were either patched gang members, ­recent members or had links to bikies.

The ALP has suspended ties with the CFMEU, and the union’s branches in five states are being placed under control of an external administrator.

Mr Hughes said the MRC had conducted an analysis showing that Maurice Blackburn had provided $2.49m to Labor and Labor-aligned third parties since 2019.

“The analysis suggests Maurice Blackburn has given the CFMEU – donated to the CFMEU – at least $890,000 since 2019,” he said.

“Some of the largest single donations that Maurice Blackburn make are to the CFMEU. So there’s a donation here of $500,000.

“These donations come in around the same time that Maurice Blackburn was named the preferred supplier of legal services to the CFMEU. That’s what struck me.

“Thankfully now we do have a federal ICAC and this might be one of the matters they seek to seek to investigate down the track. I mean Maurice Blackburn might say it’s a coincidence that they donate this money and have been appointed the legal provider for Australia’s most militant union, but we’re talking about very large sums of money here.”

Mr Hughes said an emerging part of Maurice Blackburn’s business appeared to be class actions, which can “be can be very profitable, where litigation funders and law firms like Maurice Blackburn can receive essentially 50 per cent of the money that’s awarded in damages.”

The law firm responded, telling The Australian its lawyers acted for the “CFMEU’s Victoria-Tasmania construction branch and its members in industrial and personal injury matters”.

“These are commercial arrangements to promote our work in personal injury and are subject to legal professional regulation,” it said.

“We are also Australia’s leading class action law firm and proud of our work to hold corporations and governments accountable when they harm everyday people.”

The law firm also rejected suggestions it made donations to the CFMEU, arguing instead that it provided commercial sponsorships.

Original URL: https://www.theaustralian.com.au/business/legal-affairs/menzies-research-centre-challenges-links-between-maurice-blackburn-and-cfmeu/news-story/90225e718a117a4a5df0989a2a3fda20