Smyth to face court over use of union funds

Mining union heavyweight Stephen Smyth is facing Federal Court proceedings over allegations he used about $6700 in district branch funds for personal spending. The transactions include expenses relating to home plumbing, personal dental costs, drivers’ licence renewal, car hire while on annual leave in the USA, and travel and meals for himself and his family members. Registered Organisations Commissioner Mark Bielecki has commenced civil penalty proceedings over the matter against Mr Smyth, president of CFMEU Mining & Energy Queensland District. The proceedings allege that Mr Smyth breached his officers’ duties under sections 285, 286 and 287 of the Fair Work (Registered Organisations) Act 2009 by incurring personal expenditure using district branch funds across more than 80 transactions during the financial year ending on June 30, 2016. The Commissioner alleges that in his role as the most senior officer of the Queensland District Branch, Mr Smyth regularly used the District Branch’s funds for personal purposes not related to his employment, and which he was not authorised to incur. Mackay-based president of CFMEU Mining and Energy Queensland Stephen Smyth. Where Mr Smyth disclosed that expenditure as personal, he had it added to an unauthorised loan he took from the District Branch that was not in writing and did not incur any interest, the Commissioner said. The decision to commence Federal Court proceedings follows the completion in June of an investigation by the Registered Organisations Commission, spurred by an auditor’s report of the CFMEY Queensland branch’s financial statement where the auditor could not verify that all credit card expenses were incurred solely for business purposes. "The proceedings raise important questions about whether senior officers of registered organisations are entitled to rely on their own authority to regularly use members’ money to fund personal expenditure," the Registered Organisations Commission said in a public statement on the case. "... Members of registered organisations are entitled to be confident that senior officials are accountable and will spend members’ money on matters which are in the best interests of members. Therefore, there is a public interest in bringing these proceedings." The Commissioner is seeking the making of declarations and the imposition of civil penalties on Mr Smyth. During the relevant period, the maximum available penalty for contravention of sections 285, 286 or 287 of the RO Act varied between $10,200 and $10,800.

Smyth to face court over use of union funds

Industry Queensland

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