Police raid CFMEU headquarters, five arrested in corruption probe
Victoria Police have arrested five people in a raid on the Melbourne headquarters of the Construction, Forestry, Maritime and Employees Union (CFMEU) as part of an investigation into alleged corruption in the construction industry.
Detectives from Taskforce Hawk, established to tackle criminal behaviour in the construction sector, executed warrants at six addresses on Monday morning, police said. The CFMEU's office on Elizabeth Street in Melbourne's CBD was one of the premises searched.
A police spokesperson confirmed that five people had been taken into custody and were being interviewed. The investigation concerns allegations of 'secret commissions', a term police say refers to "corruptly giving, receiving or soliciting an undisclosed financial benefit, reward, payment or kickback."
A report by PerthNow indicated that Taskforce Hawk detectives arrived at the headquarters at about 9.30am and left just before 12pm, and noted that the reason for the raid was initially unclear.
Charges and seizures
The Guardian reported that two men were subsequently charged as a result of the investigation. A 36-year-old from Chirnside Park was charged with possessing a Schedule 4 drug and bailed to appear at Ringwood Magistrates Court on 10 November. A 46-year-old from Westbury was charged with failing to store a long-arm firearm and ammunition as required by the Firearms Act 1996, and bailed to appear at Latrobe Valley Magistrates Court on 11 January. The other men were released pending further inquiries.
Police also seized four CFMEU-registered vehicles, 10 mobile phones, a Schedule 4 poison, a .22 rifle and ammunition, laptops, documents, iPads, and USB storage devices. No arrests were made at the CFMEU headquarters, and no union officials were charged, according to The Guardian. The investigation covers alleged secret commissions, fraud, and drug trafficking.
Operation Hawk was established in July 2024 to target criminal behaviour linked to the construction industry, and transitioned to Taskforce Hawk the following year, police said.
CFMEU response
CFMEU assistant administrator Matt McGowan said he was unable to comment on the development, but issued a statement acknowledging the police operation. "As this is a live police matter, CFMEU cannot comment further at this time," he said.
CFMEU administrator Michael Crosby told The Guardian that the union was cooperating with police. Crosby said criminals and bad actors remain a threat, and the administration has undertaken reform.
Context: Royal commission and union history
The raid comes as Victorian Premier Ben Carroll has released the terms of reference for a royal commission into the state's construction sector, headed by former South Australian chief justice Chris Kourakis. The commission will investigate the extent to which corruption, criminal conduct or serious misconduct has occurred on or surrounding major public and civil infrastructure projects. It can also investigate whether Victoria's executive government or delivery authorities adequately followed their roles and responsibilities.
Barrister Geoffrey Watson's 'Rotting from the Top' report, which is cited by The Canberra Times and PerthNow, claimed that worksites became drug distribution hubs, killers were handed high-paying jobs, and strippers performed for night crews after organised crime infiltrated the union. The report estimated that Victorian government inaction caused $15 billion in blowouts on the state's $100 billion Big Build program.
The inquiry is due to produce a final report in August 2027, but Premier Carroll said it could run longer. "I think it will be an 18-month, potentially two-year process, but I don't want to pre-empt anything," he told Melbourne radio station 3AW.
The raid occurred 10 days after former union heavyweight John Setka was arrested at his home in Footscray and charged with one count of using a telecommunications device to menace and two counts of committing an indictable offence while on bail, as reported by PerthNow. Setka had earlier been arrested and charged for a third time in August over allegedly making threatening comments. Setka quit as head of the Victorian CFMEU in 2024 following a Nine investigation that alleged major Victorian and NSW construction projects had been infiltrated by underworld figures, and the union's construction and general division was placed into administration in mid-2024 in response to those allegations.
The Guardian noted that the scandal was a leading contributor to the ousting of former premier Jacinta Allan, and that new premier Ben Carroll announced the royal commission last week.
Detective Acting Superintendent Jamie Walker urged anyone with information, no matter how seemingly insignificant, to come forward, as reported by The Guardian.