NSW Fair Trading launches probe of CFMEU funds

The construction union and its NSW boss have come under investigation by the state’s Fair Trading agency.

The construction union and its NSW boss, Brian Parker, have come under investigation by the state’s Fair Trading agency in an unprecedented probe into union branch fundraising.

In the first use of its powers to investigate possible breaches of charities laws, Fair Trading will review allegations the Construction Forestry Mining and Energy Union’s NSW branch and Mr Parker broke charities laws.

The state’s Minister for Innovation and Better Regulation, Victor Dominello, ordered the investigation — which could lead to fines against the union and jail terms for officials found to have broken the laws — following a referral from trade union royal commissioner Dyson Heydon.

“NSW Fair Trading is investigating whether the CFMEU or anyone acting on its behalf has been involved in unlawful fundraising,” a spokesman confirmed yesterday.

The Australian revealed last month that Mr Heydon had written to Mr Dominello recommending an inquiry into “all of the CFMEU NSW’s practices concerning charitable fundraising” after the royal commission heard evidence the branch banked more than $100,000 in so-called charitable donations from Chinese property developer Jian Qiu Zhang into the union’s general revenue.

The investigation into the “serious” allegations was a “priority”, Mr Dominello’s spokesman said.

Mr Parker also faces possible imprisonment after Mr Heydon referred allegations of perjury to the NSW Director of Public Prosecutions. Fines of up to $5500 apply to the union for any breach of the Charitable Fundraising Act, while officials face jail terms of six months for any breach.

Mr Heydon’s final report on the inquiry, unveiled by the Turnbull government in December, concluded Mr Parker and a union organiser, Yulei Zhou, “may have committed a number of criminal offences” under the act.

The inquiry heard Mr Zhang paid the CFMEU NSW at least $118,010 for ad hoc events ranging from a union picnic day to funding Mr Parker’s attendance at a Sinn Fein speaking tour.

CFMEU construction division national secretary Dave Noonan, who declined to comment on the Fair Trading investigation, has commissioned an internal governance review of the union headed by respected former ACTU assistant secretary Tim Lyons. Mr Noonan launched the “root and branch” review, likely to report in coming months, after saying the donations were “not ideal”.

Fair Trading gained oversight of the Charitable Fundraising Act for the first time after a state government reshuffle last year.