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<\/p>\nFormer 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.<\/p>\n
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.<\/p>\n
“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.<\/p>\n
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”.<\/p>\n
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The CFMEU administration says John Setka’s expulsion will take effect immediately and last five years. (AAP: Joel Carrett)<\/p>\n
“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.<\/p>\n
“John Setka’s conduct is shameful. He has failed in the most basic duties of a union official \u2014 to put members’ interests above all.”<\/p>\n
The CFMEU administration said Mr Setka’s expulsion would take effect immediately and last for a “legal maximum term of five years”.<\/p>\n
The union administration said Mr Setka did not respond to them about the allegations.<\/p>\n
John Setka says allegations are ‘absolute lies’<\/p>\n
The press release did not provide specifics of the alleged misappropriation and the ABC does not suggest the claims are true.<\/p>\n
When contacted by the ABC, Mr Setka said the allegation was “absolute bullshit”.<\/p>\n
“I will be going to court, and I will be appealing the decision because its absolute lies and it’s defamatory,” he said.<\/p>\n
“I have never taken one dollar of union members’ money \u2014 that is an absolute lie.”<\/p>\n
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Mr Setka led the Victorian division of the CFMEU for several years. (AAP: Stefan Postles)<\/p>\n
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.<\/p>\n
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.<\/p>\n
It is understood Mr Setka was given nine days to respond to the allegations.<\/p>\n
The matter is expected to be referred to the corporate watchdog, ASIC, which declined to comment.<\/p>\n
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.<\/p>\n
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.<\/p>\n
“When we’ve seen it was then profitable, we then [transferred] it all back to the official CFMEU general revenue,” he said.<\/p>\n
“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.”<\/p>\n