Former Victorian CFMEU boss John Setka says an allegation from the union’s administration that he misappropriated more than $3 million in member funds is “absolute bullshit” and he plans to appeal his expulsion.
In a statement his afternoon, the CFMEU’s administration said it had expelled Mr Setka from the organisation after he had faced 27 disciplinary charges under union rules.
“An investigation by the CFMEU administration alleged Setka had failed in his duty as secretary of the union and diverted $3.3 million in revenue from union merchandise and site vending machines to his companies,” union administrators said in a statement.
In the statement, CFMEU administrator Michael Crosby said the union would pursue Mr Setka in a bid to recover “the millions that his company has received”.
The CFMEU administration says John Setka’s expulsion will take effect immediately and last five years. (AAP: Joel Carrett)
“John Setka held a position of responsibility but abused that privilege to take millions of dollars from the members of the CFMEU,” Mr Crosby alleged.
“John Setka’s conduct is shameful. He has failed in the most basic duties of a union official — to put members’ interests above all.”
The CFMEU administration said Mr Setka’s expulsion would take effect immediately and last for a “legal maximum term of five years”.
The union administration said Mr Setka did not respond to them about the allegations.
John Setka says allegations are ‘absolute lies’
The press release did not provide specifics of the alleged misappropriation and the ABC does not suggest the claims are true.
When contacted by the ABC, Mr Setka said the allegation was “absolute bullshit”.
“I will be going to court, and I will be appealing the decision because its absolute lies and it’s defamatory,” he said.
“I have never taken one dollar of union members’ money — that is an absolute lie.”
Mr Setka led the Victorian division of the CFMEU for several years. (AAP: Stefan Postles)
The ABC understands the money Mr Setka stands accused of misappropriating allegedly came from union members through the sale of CFMEU-branded hoodies and shirts, as well as drinks and snacks purchased on sites.
A source with knowledge of the internal investigation alleged the money was then transferred to a company of which Mr Setka was a director and secretary.
It is understood Mr Setka was given nine days to respond to the allegations.
The matter is expected to be referred to the corporate watchdog, ASIC, which declined to comment.
When asked about the alleged details of the fund transfers, Mr Setka told the ABC union-branded merchandise sales had been managed under the company in a bid to protect union funds.
He said at a stage when the union was ramping up its production of merchandise, a decision was made to run that enterprise through the company in case the merchandise sales made a loss.
“When we’ve seen it was then profitable, we then [transferred] it all back to the official CFMEU general revenue,” he said.
“That’s all it is, there’s no skulduggery, there’s receipts, there’s paperwork, there’s everything. And I’m 100 per cent confident.”
The construction arm of the CFMEU has been in administration since 2024, amid allegations of corruption and bullying in the union.
In September, Mr Setka faced court over an Instagram post he allegedly made attacking union administration figures.