Disgraced former CFMEU leader John Setka has been expelled from the union and accused of misappropriating more than $3 million in union funds, union administrator Michael Crosby announced on Wednesday. The expulsion comes as Victoria’s Kourakis royal commission hears evidence about the union’s conduct on the $109 billion Big Build infrastructure scheme.
Crosby said Setka faced 27 disciplinary charges, including allegations he misappropriated more than $3 million in union funds. “John Setka held a position of responsibility but abused that privilege to take millions of dollars from the members of the CFMEU,” Crosby said. “John Setka’s conduct is shameful. He has failed in the most basic duties of a union official – to put members’ interests above all.”
Crosby’s ongoing forensic inquiries found that the Setka-controlled slush fund had received over $400,000 from Coca-Cola Amatil, as the fund earned more than $3 million from building site vending machine deals and the sale of CFMEU merchandise. In a statement, Crosby said 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”. He also vowed to pursue Setka for the misappropriated funds after the former union boss ignored requests to respond to claims he had no legal right to hold funds belonging to union members.
In September, The Age reported that Setka was refusing to cede control of more than $1 million held in a private political slush fund that earned millions of dollars, including via a deal with Coca-Cola. Setka has previously told the masthead the vending machine arrangement was struck long before he became secretary of the union and denied any wrongdoing.
In a separate development, Setka and several former CFMEU lieutenants are also facing civil prosecution for their suspected misuse of $329,000 in members’ money to entrench the power of former Health Workers Union boss and ALP powerbroker Diana Asmar.
Setka’s 12-year leadership of the CFMEU involved record pay and conditions for construction workers but also coincided with the union’s descent into allegedly improper relationships with gangland figures, bikie gangs, and building company bosses. From 2020, the union gained near complete industrial control over government Big Build projects by 2024, allowing certain gangland figures and companies to allegedly profit at the expense of Victorian taxpayers, according to revelations first published by The Age and Sydney Morning Herald and now being explored by the Kourakis royal commission.
During Wednesday’s commission hearing, one of those gangland figures, Mick Gatto, a close friend of Setka, was named. In July 2024, this masthead published private text messages between Gatto and Setka showing the closeness of their bond, with Gatto telling Setka “I love ya” and each man describing the other as “brother”.
Analysis
Why This Matters
- Setka's expulsion marks the final formal break between him and the union he led for 12 years, which wielded significant influence over Victoria's $109 billion Big Build infrastructure program.
- The slush fund allegations raise questions about whether union funds were diverted for personal or political gain at the expense of members.
- The parallel royal commission is examining the union's ties to organised crime and its impact on taxpayer-funded projects, with potential implications for future governance of large public works.
Background
John Setka was the long-time state secretary of the CFMEU's Victorian branch, a powerful industrial and political force. In July 2024, The Age and Sydney Morning Herald published revelations about the union's alleged improper relationships with gangland figures and bikie gangs. This led to the appointment of administrator Michael Crosby in an effort to reform the union. The Victorian government also established the Kourakis royal commission to investigate the union's conduct on the Big Build infrastructure scheme. Setka has previously denied wrongdoing regarding the vending machine arrangements.
Key Perspectives
John Setka: Has previously told The Age the vending machine arrangement was struck long before he became secretary and denied any wrongdoing.
Michael Crosby, CFMEU administrator: Said Setka “held a position of responsibility but abused that privilege to take millions of dollars from the members” and that his conduct was “shameful”. Crosby has vowed to pursue Setka for the misappropriated funds.
What to Watch
- The outcome of civil prosecution against Setka and others over the alleged misuse of $329,000 involving Diana Asmar.
- The Kourakis royal commission's findings regarding CFMEU ties to organised crime and their impact on Big Build project costs.
- Whether Setka will respond to Crosby's demands to return control of the slush fund and any legal action Crosby takes to recover the funds.
Checked
12 claims in this story checked against 1 source: 11 supported.
Show each claim
- SupportedJohn Setka has been expelled from the CFMEU.The Age - Latest News: “Disgraced ex-CFMEU leader John Setka has been expelled from the union”
- SupportedSetka was accused of misappropriating more than $3 million in union funds.The Age - Latest News: “including allegations he misappropriated more than $3 million in union funds.”
- SupportedCrosby announced the expulsion on Wednesday.The Age - Latest News: “In a statement released on Wednesday, Crosby said that Setka”
- SupportedThe expulsion came as the Kourakis royal commission heard evidence about the union’s conduct on the Big Build scheme.The Age - Latest News: “comes as Victoria’s Kourakis royal commission unearths extraordinary witness testimony about the conduct of the union and the state Labor government on the $109 billion Big Build infrastructure scheme.”
- SupportedCrosby said Setka faced 27 disciplinary charges, including allegations of misappropriating more than $3 million.The Age - Latest News: “Setka was expelled after facing 27 disciplinary charges under the union’s disciplinary process, including allegations he misappropriated more than $3 million in union funds.”
- SupportedCrosby said: “John Setka held a position of responsibility but abused that privilege to take millions of dollars from the members of the CFMEU.”The Age - Latest News: ““John Setka held a position of responsibility but abused that privilege to take millions of dollars from the members of the CFMEU,” Crosby said.”
- SupportedCrosby said: “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 Age - Latest News: ““John Setka’s conduct is shameful. He has failed in the most basic duties of a union official – to put members’ interests above all.””
- SupportedThe Setka-controlled slush fund had received more than $400,000 from Coca-Cola Amatil.The Age - Latest News: “the Setka-controlled slush fund had received “over $400,000” from Coca-Cola Amatil”
- SupportedThe fund earned more than $3 million from building-site vending machine deals and CFMEU merchandise sales.The Age - Latest News: “as the fund earned more than $3 million from building site vending machine deals and the sale of CFMEU merchandise.”
- SupportedIn a statement, Crosby said 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”.The Age - Latest News: “Crosby said that 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”.”
- SupportedSetka denied wrongdoing and said the vending-machine arrangement began long before he became union secretary.The Age - Latest News: “Setka has previously told this masthead the vending machine arrangement had been struck long before he became secretary of the union and denied any wrongdoing.”
- Partly supportedThe union’s increasing Big Build power allowed certain gangland figures and companies to allegedly profit at Victorian taxpayers’ expense.The Age - Latest News: “the union had – according to revelations first unearthed by The Age and Sydney Morning Herald and now being explored in detail by the Kourakis royal commission – allowed certain gangland figures and companies aligned with select CFMEU bosses to allegedly profit at the expense of Victorian taxpayers.”