CFMEU engaged in illegitimate ‘financial shadow operations’, inquiry told

Queensland’s CFMEU engaged in “financial shadow operations” to bolster its income through an illegitimate use of workplace agreements, the state’s powerful inquiry into the union has heard.

Counsel assisting the inquiry Andrew Meagher KC opened Wednesday’s public hearing by saying these operations were largely not disclosed to union members or contractors signing agreements.

On Wednesday, the inquiry heard from forensic accountant Natalie Faulkner, a senior managing director and leader of Australian risk and investigations at FTI Consulting, who probed the union’s finances.

“We are looking at some of the financial shadow operations engaged in by the CFMEU, and it appears predominantly the CFMEU executive,” Meagher told the inquiry in the day’s opening session.

“I say shadow because there is no evidence to suggest these operations were disclosed to members – that is, with one exception.

“And, of course, disclosure was required under the law in respect of enterprise agreements. Nor was disclosure made to others.”

The eleventh week of public hearings is the first to dig into some of the union’s financial structures, activities and alleged wrongdoing.

On Tuesday, the inquiry heard the Queensland branch of the CFMEU improperly used donations to pay personal fines, including one of more than $30,000.

The state government launched the $19.7 million commission of inquiry last year after reporting by this masthead and 60 Minutes into criminality, corruption and misconduct in the union and construction sector nationwide.

This month, the probe was given a nearly 18-month extension to deliver its final report now due in December 2027.