A bombshell investigation has revealed the infiltration of Australia's construction industry by high-profile criminals and biker gangs, exposing deep-rooted corruption within one of the nation's most powerful unions.
The Construction, Forestry, Maritime, Mining, and Energy Union (CFMEU) has come under intense scrutiny following a joint investigation by 60 Minutes Australia and Nine Newspapers.
The probe uncovered evidence gangsters had not only infiltrated the union's construction division but had also taken up high-paying union roles, driving up the cost of building projects through bribes and kickbacks.
Nick McKenzie, the investigative journalist behind the exposé, revealed the union had been involved in extortion, dodgy contracts, and corruption right under the government's nose.
McKenzie described it as "Australia's worst kept secret" adding Victoria had turned into a "gangster state".
"Can you imagine complaining about the Hells Angels boss or a former Mongols boss who CFMEU parachuted in as the union delegate?" he said.
CFMEU Victoria. (Source: Nine)
Prime Minister Anthony Albanese and Victoria's Premier Jacinta Allen were reportedly alerted to these allegations two years ago, raising questions about the government's response.
On Monday, Allen labelled the union's alleged actions as, "Thuggish, unacceptable behaviour at its worst," calling for a thorough investigation and the eradication of the "rotten culture".
The revelations have put Australia's Labor Party under immense pressure to take decisive action due to its close ties with unions. It has now launched an inquiry into the matter.
"Today's announcement is decisive, it's clear, and it will make a difference," said Albanese.
Australia's Master Builders Association welcomed the government's move to appoint an independent administrator to run the CFMEU, aiming to stamp out the ingrained culture of bullying, thuggery, and disregard for the law.
But Opposition leader Peter Dutton claimed Albanese's initial "inaction" when he was informed about the misconduct had cost hundreds of millions of dollars.
"It is the biggest defrauding of the Australian taxpayer in history," Dutton said.
Victoria's union boss stood down
John Setka. (Source: Nine)
The investigation has already led to significant fallout.
John Setka, the union's militant leader in Victoria, has been stood down after 40 years in the job, and the union's construction arm in Victoria has been suspended.
The state government has also barred the union from making political donations while the investigation continues.
It is expected federal government will make a similar call.
Setka's downfall was partly due to a video uncovered showing him making a nighttime visit to threaten the family of a fellow senior union official and dumping a suitcase with a message calling his colleague a "dog".
Setka left a suitcase with a message calling his colleague a "dog". (Source: Nine)
NSW union boss also implicated
Setka is not the only union boss that has been implicated.
A police camera hidden in the ceiling of the union's Sydney office allegedly captured NSW construction union boss Darren Greenfield accepting a $5000 bribe in return for union support.
Greenfield faced corruption charges in 2021 but has long maintained his innocence.
Despite the gravity of the situation, CFMEU national secretary Zach Smith said he supported Greenfield.
"Darren Greenfield has time and time again rejected any claims of corruption," he said.
Smith added his organisation has "zero tolerance for criminality" insisting anyone found guilty of misconduct would be removed.
In response to the scandal, NSW Premier Chris Minns has suspended the CFMEU from the Labor Party and halted all political donations from the union.
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