CFMEU spent $559,000 of members’ funds fighting Greenfields’ bribery charges

The union spent $559,000 of members’ funds on lawyers for Darren Greenfield and his son, Michael, to fight bribery charges.

Michael and Darren Greenfield at Surry Hills police station after being charged in 2021. Picture: John Feder

The NSW CFMEU spent more than half a million dollars of members’ funds on lawyers for Darren Greenfield and his son, Michael, to fight bribery charges in the two years before the union’s construction division was forced into administration.

The Weekend Australian can reveal the union paid two law firms amounts totalling $559,000 between May 2022 and July this year to represent the Greenfields.

The $559,000 of members’ funds spent on legal representation for the Greenfields is on top of the $3.15m of members’ funds the union agreed would be transferred to the Greenfields’ lawyers in July.

The decision to transfer the $3.15m, which Workplace Relations Minister Murray Watt said “stinks to high heaven”, was taken on July 19, two days after the ­Albanese government announced the union would be forced into administration.

The Greenfields were arrested and charged in 2021 after allegedly taking bribes from a construction firm in exchange for favourable treatment from the union. They have denied any wrongdoing.

The initial decision by the CFMEU to use members’ funds to pay the Greenfields’ legal fees was made at a meeting of the union’s branch committee of management on September 17 2021, the same day they were arrested and charged.

Based on the minutes of the 7am meeting, it appears officials did not know the precise nature of the charges facing the Greenfields when they signed off on using members’ funds to engage lawyers to defend them.

According to the minutes, the union’s then state president, Rita Mallia, and assistant state secretary Rob Kera told the meeting the “foreshadowed charges” appeared to relate to a search warrant executed on the union’s Pyrmont office in November 2020.

“As such, the charges would appear to relate to allegations involving the conduct of the state secretary and the assistant state secretary in the performance of their offices,” the minutes read.

“President Rita Mallia and assistant state secretary Rob Kera noted further that neither the state secretary nor the assistant state secretary have made admissions in relation to any criminal allegations.

“Rita Mallia and Rob Kera both expressed their support, and the support of the CFMEU more broadly, for Darren and Michael and their families.”

Officials passed a resolution stating the committee “unanimously expresses its total support for Darren and Michael and their families and condemn(s) the federal (Coalition) government for continuing its attacks on this union and its officials”

It said in circumstances where NSW Police had foreshadowed laying criminal charges against the Greenfields “in relation to allegations arising from the performance of their offices” and they had made no admissions, the committee resolved that the “reasonable legal expenses” of the Greenfields “will be met by the branch, including retaining private legal representation and counsel to defend any charges that are laid”.

The resolution said the committee had satisfied itself that the payment of the duo’s legal expenses would be in accordance with the rules of the union.

It said “to the extent that Darren and Michael cannot attend to their duties”, Mr Kera and Ms Mallia would jointly oversee the operations of the union. The minutes said the Greenfields were not present at the meeting.

Lawyer Paul McGirr, whose law firm is representing the Greenfields, could not be reached for comment on Friday. CFMEU administrator Mark Irving declined to comment.

Construction unions have threatened a 72-hour shutdown of the Victorian building industry and action on the waterfront, warning employers against using the CFMEU ­administration to try to wind back conditions in union agreements.