Trade union royal commission investigates CFMEU links to crime figure George Alex
An inquiry has begun investigating whether crime figure George Alex paid kickbacks to union officials for help arranging construction industry contracts.
The Royal Commission into Trade Union Governance and Corruption is looking at whether officers from the NSW branch of the Construction, Forestry, Mining and Energy Union (CFMEU) received "secret commissions or other benefits" from Mr Alex's labour hire and scaffolding companies.
It follows a joint investigation by the ABC's 7.30 program and Fairfax Media that uncovered bribery, extortion and threats of violence used to cement the influence of crime figures on Australia's construction sites.
Mr Alex is known for his links to criminals and bikie gangs, and was described by counsel assisting the commission Jeremy Stoljar SC as "a person with well-publicised connections with organised crime".
His standover man Joe Antoun was shot dead last year.
Mr Stoljar said Mr Alex also "reportedly attended functions with the likes of Mr Khaled Sharrouf", an Australian jihadist who recently made headlines when his young son was photographed holding the severed head of what was said to be a Syrian government soldier.
The commission is investigating why the CFMEU continued to sign enterprise agreements with Mr Alex's companies after some had gone into liquidation before rising up again into new entities.
In his opening address, Mr Stoljar said the commission had obtained police records showing the extent of the relationship between Mr Alex and CFMEU officials.
"Why has the CFMEU continued to award EBAs (Enterprise Bargaining Agreements) to Mr Alex's companies given the repeated failures of his businesses, his ongoing publicised connections with criminal identities, and the labour hire nature of his business to which the union is opposed?" Mr Stoljar said.
The commission heard that in the middle of last year, two of Mr Alex's companies - Active Site Payroll Services and Elite Holdings Group - both collapsed, only to be replaced by new companies - Active Labor Pty Ltd and Elite Access Scaffolding.
"Among other things, the commission is investigating whether Mr Alex and others associated with the Active and Elite businesses have made payments to or conferred other benefits on certain union officials," Mr Stoljar said.
'Punches thrown' over payment
Doug Westerway, a project manager who worked with Mr Alex, told the hearing he regularly visited Mr Alex's Sydney home, where he would see union identities including CFMEU officials Brian Parker and Darren Greenfield.
Mr Westerway also said he was instructed to make weekly cash payments of $2,500 to Antoun.
"I don't know what they did with the payment," he said.
He said he was involved in a fight with Antoun in October last year, after Mr Westerway refused to give him money.
Mr Westerway told the commission Antoun began throwing punches at him in the middle of the street.
"He kept on screaming at me and telling me it was my last warning," Mr Westerway said.
He said he sustained two perforated ear drums in the incident.
Mr Westerway could not explain why the payments continued after Antoun's death in December last year, or where they were going.
Director told payments were for union fees
Meanwhile, Elite Access Scaffolding director Michael Cohen said he was instructed by Antoun to keep making weekly payments, which he was told were for union fees.
"I was told to give it to Joe Antoun - that's the reason I did so," he said.
An investor in Elite Access Scaffolding, Jimmy Kendrovski told the commission he would give Antoun money for union fees, but said he never saw that money handed to a union official.
Kendrovski, who is in custody, was reluctant to answer questions after he was assaulted in prison on Friday.
"I have a wife and three kids outside on their own and I just can't comment on it," he said.
A union delegate with construction company Brookfield Multiplex, Jose Mario Barrios told the commission he received threatening phone calls after voicing his concerns about companies associated with George Alex.
"I'm a bit of a loud mouth in the union and I do say what I feel," he said.
