Administrator Mark Irving has found addressing corruption in the shadow of an unresolved High Court challenge has “impeded the prompt implementation” of reforms.
Administrator Mark Irving has found addressing corruption in the shadow of an unresolved High Court challenge has “impeded the prompt implementation” of reforms.
By Olivia Ireland
Updated February 25, 2025 — 4.32pmfirst published at 3.51pm
The task of weeding out corruption in the construction union has been stymied by a High Court challenge that threatens to reinstate former union bosses thrown out by the federal government, the union’s administrator has told parliament.
In the report tabled on Tuesday during Senate estimates, CFMEU administrator Mark Irving describes how his regime has been undermined by an unresolved High Court challenge at the same time as union staff told an administration investigator that “underworld” figures such as Mick Gatto “came with the furniture” in the troubled industry.
The administration was created in August last year in response to the Building Bad investigation by this masthead, The Australian Financial Review and 60 Minutes. In response to the administration, ousted members of the union brought a High Court challenge in September, led by barrister Bret Walker, SC.
The administration’s ability to clean up the CFMEU has been a challenge, said Irving, in particular through gaining the trust of people to speak out about their experience with the union.
“An effective whistleblowing procedure requires participants to trust that the recipient of information will not use it to further victimise the complainant. Uncertainty about whether the former leadership is returning to power has, in some cases, impeded the administration in obtaining full and frank disclosures from complainants,” the report said.
“In circumstances where the previous leadership could be reinstated as the result of the High Court proceedings, the engagement of the best new staff, reallocating resources and performing the necessary work has been stymied.
“There is little incentive for employees, delegates, employers and employer peak bodies to fully commit to a reform agenda when some members of the former leadership have intimated that full collaboration with the administration may result in a further cycle of retaliation.”
Reports from barristers Geoffrey Watson and Chris Kummerow detailing union violence and threats, which were released earlier this month, were also tabled at Senate estimates.
“I was told about specific incidents in which union people had been severely bashed or subjected to threats of violence or death, but no police referral was made,” Watson wrote in his report.
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“From my investigation, it appeared to me that, in this cycle of intimidation and violence, the CFMEU had lost control.”
Watson added that Gatto was a regular visitor of worksites.
“Many of the officials I interviewed said that they had seen or met with Faruk Orman and Mick Gatto at the CFMEU offices on Elizabeth Street. I was told that there were occasions where EBA paperwork was brought to Mick Gatto while he met with senior officials,” Watson wrote.
Further, Watson’s report concluded former NSW secretary of the CFMEU Darren Greenfield should be investigated for criminal charges after more than $3 million of union members’ money was transferred to pay legal fees for him and his son.
The NSW branch of the union transferred $3.15 million to law firm McGirr and Associates in July 2024, two days after the Albanese government forced the CFMEU into administration.
“It is common ground that the $3,150,969.50 was intended to cover the further legal expenses
being incurred by the Secretary of the CFMEU Construction and General Division NSW Divisional
Branch, Darren Greenfield, and his son the Assistant Secretary, Michael Greenfield,” Watson wrote.
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A second sum of $500,000 was put aside to defend any proceedings against the Fair Work Commission.
“It is remarkable that, at this time of apparent crisis, the Greenfields were receiving this kind of specifically preferential treatment,” Watson wrote.
“Darren Greenfield knew that important funds were being paid for his benefit, when they could have been used elsewhere for the benefit of the members.”
Further, Watson’s report claimed McGirr provided an estimate for legal costs that was “grossly excessive”, “obviously hopeless” and “grossly exaggerated” to his own benefit and that of the Greenfields.
In response, McGirr defended his reputation and dismissed Watson’s findings.
“Suggestions that I hindered any investigation is abhorrent and I stand by my reputation within the legal fraternity and the report was like a creative writing piece,” he told this masthead.
“None of the rates that we were charging were excessive and the particular document that Watson did not release evidences all of that in writing including in bold that the money was an estimate only, and any money not spent would be returned to their lawful owner.”
In a submission from McGirr seen by this masthead, he outlines rates for senior counsel, two junior counsels and solicitors, which amount to $3 million in fees.
The Greenfields and former NSW branch director Rita Mallia also face fines of nearly $200,000 for failing to cooperate with the investigation.
The CFMEU administration declined to comment. Workplace Relations Minister Murray Watt was contacted for comment.
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Olivia Ireland is a workplace relations and federal breaking news reporter for The Sydney Morning Herald and The Age, based at Parliament House in Canberra.Connect via Twitter or email.
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