SA Premier Peter Malinauskas rejects calls to hand back a $125k Victorian CFMEU donation

Peter Malinauskas is rejecting calls to hand back a $125,000 donation from the CFMEU despite his concerns about the militant influence of the union in SA.

South Australian Premier Peter Malinauskas. NCA NewsWire / David Mariuz

South Australian Premier Peter Malinauskas is rejecting calls for SA Labor to hand back a $125,000 ­donation from the Victorian CFMEU despite admitting he is concerned about the militant influence of the union in South Australia.

He insists he remains committed to banning political donations, even though SA Labor accepted the contentious donation just three days before its March 19 election triumph.

Mr Malinauskas said he ­acknowledged the concerns of state business about the rising ­influence of the John Setka-led Victorian branch over the CFMEU in South Australia.

The Australian revealed last week that, after years of white-anting the SA division, Mr Setka is set to be installed as its state secretary, making him the head of the union in Victoria, Tasmania and SA.

“Top line, I am concerned about the Victorian branch of the CFMEU ostensibly taking over the SA branch,” Mr Malinauskas told Radio FIVEaa on Wednesday.

“That does concern me because I wouldn’t want to see the sort of militancy and images of thuggish-like behaviour occurring on South Australian construction sites.

“We will be watching very closely to see if that occurs and if it does I will be a premier that will rail against it.”

Asked if Labor had legitimised the Victorian CFMEU by accepting the donation, Mr Malinauskas said: “No, not at all, because it doesn’t.”

“The CFMEU has always ­donated to state political parties around the country for time ­immemorial,” he said.

He said there was no inconsistency between his promise of ­January to ban political donations and to accept one of such magnitude from such a contentious source just two months later.

“I did make it clear at the time in the lead to the election that we would play by the rules that exist,” he said. “In March we had an election to win. That policy would ne ancient history now if we had not won the election.

“We were in receipt of donations like any other political party.”

Mr Malinauskas said the South Australian Liberal Party had also accepted controversial donations from figures such as Chinese mining magnate Sally Zhou.

“The reported sums she has ­donated to the Liberal Party make $125,000 seem like small beer,” he said. “But if I get my way I will be banning political donations full stop.”

Mr Malinauskas said the CFMEU donations had no bearing on government policy, pointing to his recent workers compensation reforms that were in line with those sought by the Master Builders Association.

Businesses in Adelaide remain unconvinced by the Premier’s reassurances amid rumours that some major projects are under a cloud as the more militant CFMEU adds rising labour costs to interest rate and supply chain pressures.

The Australian has spoken to some business leaders in the past week who were supportive of Mr Malinauskas, having believed former premier Steven Marshall mishandled Covid and left the private sector to fend for itself.

Groups such as Business SA, the Australian Hotels Association and even the MBA were openly ambivalent about Mr Marshall and supportive of Mr Malinauskas ahead of the poll.

“I have to admit this CFMEU expose has surprised me,” one business leader said on Wednesday.

“I’m feeling naive. I believed him (Mr Malinauskas) all the times he stood up and said he was proud to represent workers and business and wanted nothing to do with the CFMEU.

“I’m surprised by the lack of judgment. I really rated Mali as highly intelligent and decent but surely his integrity and reputation as premier is worth a lot more than 125k.”