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Whistleblower’s fresh claims on CFMEU’s missing $30m

Anthony Albanese is under pressure to explain why he and no-one else acted when he was first warned in 2014 by a CFMEU whistleblower that the union was being infiltrated by criminals.

Anthony Albanese at Parliament House in Canberra on Monday; former workplace relations minister Tony Burke, above; his ministerial successor Murray Watt.
Anthony Albanese at Parliament House in Canberra on Monday; former workplace relations minister Tony Burke, above; his ministerial successor Murray Watt.

Lawyers for the CFMEU whistleblower who first alerted Anthony Albanese to the union’s links to the underworld more than a decade ago wrote to the Prime Minister’s office in August seeking to pass on more information relating to corruption in the NSW branch of the union, including allegations that $30m went missing from the sale of a property.

In a tersely written letter addressed to the Prime Minister, Sydney lawyer Chris McArdle, acting on behalf of the original CFMEU whistleblowers Andrew Quirk and Brian Miller, accused “those in a position of authority” of knowing about the issues within the union but doing nothing about it until now.

CFMEU whistleblower Andrew Quirk. Picture: Nikki Short
CFMEU whistleblower Andrew Quirk. Picture: Nikki Short

Mr McArdle, in July, had also written to then industrial relations minister Tony Burke calling on the government to assist in recovering more than $600,000 from the Labor Party and ACTU to cover the cost of fighting Mr Quirk and Mr Miller’s unfair dismissal from the union on the basis they had been vindicated in their claims.

Mr McArdle asked Mr Burke to intervene to assist them following the most recent revelations of corruption that triggered the government action to put the CFMEU into administration.

In his letter to Mr Burke on July 22, Mr McArdle claims his clients had their property damaged “in the dead of night” and had their physical safety threatened after speaking out.

Tony Burke was asked to intervene following the most recent revelations of corruption. Picture: NewsWire / Martin Ollman
Tony Burke was asked to intervene following the most recent revelations of corruption. Picture: NewsWire / Martin Ollman

“That scandalous treatment was made known while it was occurring to senior executive members of the ACTU, and to members of the parliamentary Labor Party,” the letter says. “Our clients sought help in these two places. They were rebuffed. The time must surely now have come for the government of the day, the organisational Labor Party and the ACTU, to actually assist our clients.

“They are out of pocket by about $325,000 each even after receiving about $250,000 each from the Federal Court (after winning their unfair dismissal appeal).

“As you know, the Federal Court cannot award costs in its employment jurisdiction. Since it is now uncontroversial that our clients were in the right and spoke out when they had nothing going for them other than their inherent honesty and courage, we believe that they should be helped.

“Now it is timely for them to be reimbursed the amounts these criminals cost them. We ask that you intervene to achieve the fullness of justice for our clients and arrange for their reimbursement.”

Mr Burke has not responded to the letter. In another letter to Mr Burke’s replacement as Industrial Relations Minister, Murray Watt, Mr McArdle raised questions about the sale of the union’s NSW headquarters.

CFMEU whistleblower raises concerns over ‘missing millions’

“One worrying development was that during the conduct of the case, our clients became aware that the union sold its Lidcombe NSW headquarters for $30m but no trace could be found of the money,” Mr McArdle wrote.

“All of the issues canvassed in the case, in the royal commission, and on the public forum in 2015 that led to their dismissal were discussed with the Prime Minister.”

Opposition employment and workplace relations spokeswoman Michaelia Cash called on Mr Albanese to explain what action he took in 2014 when alerted to issues within the union. “He should admit he’s known about the criminal links and other behaviour within the CFMEU for many years,” she said in a statement.

The Australian revealed that CFMEU whistleblower Andrew Quirk said he personally met with Mr Albanese in 2014 and told him about his concerns over the relationship between the union and outlaw bikie gangs.

This casts doubt on constant government assertions that it did not know about the allegations prior to fresh revelations recently published by Nine newspapers.

Michaelia Cash calls for John Setka to be banned from building sites

“Mr Albanese should explain in detail what he did with the information provided to him in 2014,” Senator Cash said. “He should explain what follow-up action, if any, he took. He should admit who he passed the information on to and whether he continued to pursue the issue. It appears Mr Albanese buried his head in the sand.

“The Prime Minister should explain why the Australian Labor Party continued to take millions of dollars of donations from the CFMEU while knowing about their criminal connections.”

Senator Watt on Monday defended Mr Albanese’s record of ­action against the union.

“No one in Australian politics had stood more strongly against the CFMEU leadership, that unfortunately allowed violence and links to organised crime to go on, than Anthony Albanese,” Senator Watt said.

“Shortly after Anthony Albanese became the leader of the Labor Party, he forced the expulsion of John Setka from the Labor Party in his first few weeks in the leadership, and of course it’s under the prime ministership of Anthony Albanese that we have taken strong action, stronger than any other government has ever taken in relation to the CFMEU construction division, to put them into administration.

“So I don’t think that Anthony Albanese’s record when it comes to the CFMEU construction division can be called into question at all – and that’s a big contrast with the Greens party, who have continued to support the leadership of that union despite the constant revelations we see coming out about them.”

A government spokesperson said the letters had been referred to the CFMEU administrator.

“The government supports the ongoing work of the administrator, and his efforts to return the union to its core function – representing its members,” the spokesperson said.

“The letter was received in the days shortly after the Albanese government announced plans to introduce a bill which enabled the appointment of an administrator to the construction division of the CFMEU. Since receiving the correspondence, the Department of Employment and Workplace Relations has been seeking advice from the Attorney-General’s Department, and a response to the letter has been provided. The letter has also been referred to the administrator, to consider what action can be taken as part of the administration process.”

Read related topics:Anthony Albanese
Simon Benson
Simon BensonPolitical Editor

Award-winning journalist Simon Benson is The Australian's Political Editor. He was previously National Affairs Editor, the Daily Telegraph’s NSW political editor, and also president of the NSW Parliamentary Press Gallery. He grew up in Melbourne and studied philosophy before completing a postgraduate degree in journalism.

Original URL: https://www.theaustralian.com.au/nation/politics/whistleblowers-fresh-claims-on-cfmeus-missing-30m/news-story/51a08902a62776bf7dbcaa74725a7c06