Fallout from explosive desalination spying cocktail costs taxpayers

SECRECY was vital to the success of Pluto Project.

SECRECY was vital to the success of Pluto Project.

Maintaining secrecy was also critical for the reputation of giant building company Thiess and two key managers, who allegedly earlier this year asked infamous strike-breaker Bruce Townsend to launch Pluto Project at Victoria's troubled desalination plant.

The upshot was an explosive cocktail. Giving a job that involved covertly investigating union delegates, members and contractors to someone such as Townsend was like applying extreme heat to nitroglycerine.

But in the days before the Melbourne Cup, an informant who contacted The Australian's Investigations Unit was clearly intent on causing an explosion.

The source wanted to expose Thiess, a respected building company not known for hostile relationships with the unions, and Townsend, whose picket-crossing and union-spying work in the past 20 years has made him the figure that union leaders most hate.

The source explained how Townsend and his company Australian Security and Investigations - which is registered at his industrial premises near Hobart where one of his tenants is a bikie gang - had been covertly running Pluto Project.

The source was also concerned that Townsend, who was released from jail in 2006 after being convicted of receiving stolen cars and trucks, might succeed in his bid to receive another large payout from Thiess to keep quiet about Pluto Project.

It was a job for which he had already been paid about $500,000 for three months' work to June this year.

"I can get more information; I need to know you are taking this seriously," the informant advised.

"Place an ad in your personals section (of The Australian) stating: 'Honey, I'm home; please call again'. I will then send you more information; I need this investigated."

The source described Townsend as a "scab" and an "ex-con" who was "looking for a big pay day" from Thiess of $1 million-plus because his arrangement "to covertly supply information on payout from Thiess union members and Thiess contractors and staff" had been terminated before it reached its potential.

"This Townsend should not be allowed to operate," the informant said.

"He's had numerous meetings in Melbourne with (Thiess managers) to deliver information to them. Thiess head office does not know of this; not even the site project manager Don Johnson knows of this. Only a handful of senior HR staff at Wonthaggi know of these covert operations.

"One of the insiders who knew of this has now been sacked. The covert information to date has stated that the job will not be finished on time because the Electrical Trades Union wants to draw the job out for years.

"Townsend has hundreds of pieces of information on known union thugs and union officials. Union delegates have just walked in to recruiting and state that a person, union-approved, will be employed on top dollars, with very little construction experience, while locals in Wonthaggi don't get the job.

"Hundreds of thousands of dollars in wages are being wasted; living-away-from-home allowances are being rorted; some senior Thiess employees were covertly investigated for taking money for jobs."

Since that initial contact, the source and others have described a highly unusual arrangement between Thiess and ASI.

In the public fallout since, Thiess has lost millions of dollars and tarnished its reputation. Union leaders and members have downed tools and expressed outrage; the Brumby government has been spooked on election eve; and Townsend's apparent strategy to be paid off for remaining silent has probably been sabotaged.

Nev Power, the Thiess chief executive for Australia, has taken a bold, commendable and largely transparent approach since the crisis erupted.

He has called in external help to investigate, to try to get to the bottom of a covert operation of which he knew nothing. He has strongly criticised the secret actions to date, and vowed it won't happen again.

But in the desperation of Thiess and Premier John Brumby to get the controversial desal plant back on track so that the company and the Labor Party do not suffer more financial and political pain, the biggest risk is that the allegations of union rorts will be put on the back-burner.

The Australian is aware of allegations of serious rorting, costing many millions of dollars in a Public-Private Partnership that is likely to be an unnecessary cash and energy drain on the taxpayers and power stations of Victoria.

If the unions and Thiess reach an uneasy truce, it's likely that the magic pudding bonanza of the desal plant will continue to reward all those who have the good fortune to enjoy a slice of it.

But if laws have been broken and funds squandered to keep the unions and their members in the tent, the Office of the Australian Building and Construction Commissioner, with its "primary responsibility to ensure that workplace laws are upheld" in the industry, should flex its muscle.

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