NSW Liberals mull inquiry into ‘charitable’ payments made to CFMEU

The NSW Liberal government is mulling an inquiry into “charitable” payments made to the CFMEU’s NSW branch.

NSW regulation minister Victor Dominellon. Picture: ELENOR TEDENBORG

The NSW Liberal government is mulling an inquiry into “charitable” payments made to the Construction, Forestry, Mining and Energy Union’s NSW branch in the wake of the Heydon royal commission.

It’s understood regulation minister Victor Dominello is speaking to colleagues about launching an investigation into “all charitable fundraising” by the NSW branch, after he received a letter from Royal Commissioner Dyson Heydon last month urging him to review evidence to the inquiry.

The Australian can also reveal the CFMEU’s leadership has enlisted respected former ACTU assistant secretary Tim Lyons to head its own “root and branch” review of governance in the union’s construction division.

CFMEU construction division national secretary Dave Noonan commissioned the internal review in response to the revelations that so-called charitable donations from Chinese property developer Jian Qiu Zhang to the CFMEU NSW were banked in the branch general account.

Mr Noonan has said the donations were “not ideal”.

Mr Heydon’s report last month concluded CFMEU NSW secretary Brian Parker and a union organiser, Yulei Zhou, “may have committed a number of criminal offences against the Charitable Fundraising Act 1991 (NSW)”.

Royal commission counsel alleged Mr Zhang paid the CFMEU NSW at least $118,010 between 2011 and 2015 as “donations” for events ranging from a union picnic day to funding Mr Parker’s attendance at a Sinn Fein speaking tour.

The report referred the evidence to the state government with a view to conducting an inquiry “into all of the CFMEU NSW’s practices concerning charitable fundraising”.

Mr Dominello’s office yesterday described the allegations as “serious” and said any investigation would probably be carried out by the Department of Fair Trading.

Mr Lyons told The Australian he was “proud” to be conducting the CFMEU’s internal review, which will look at all governance procedures within the union.

“I’m proud to have been asked by the leadership of the CFMEU to work with them on governance issues,” Mr Lyons said.

Since leaving the ACTU, Mr Lyons has criticised the leadership of the labour movement as being “in denial” about plummeting union membership and the need for reform.

Mr Noonan, who has slammed Mr Heydon and the royal commission, and frustrated Australian Federal Police raids on union branches by pursuing court injunctions, has nonetheless said the union was still willing to take lessons from the inquiry.

“There are certainly appropriate times for the raising of money by charity but it ought to be open, it ought to go through the governing bodies of the union and it ought to be openly dealt with in front of the members,” Mr Noonan said last year.