“Labor has absolutely zero tolerance for corruption or criminal...

“Labor has absolutely zero tolerance for corruption or criminal activity in the workplace whether it involves an employer, employee or union.”

Labor MP accused of soliciting ‘corrupt payments’ in recommendation to royal commission

November 6, 2015 10:48pm
Stephen Drill Herald Sun

Cesar Melhem leaving the royal commission into trade union governance and corruption.

A SERVING state Labor MP has been accused of soliciting “corrupt payments” and issuing false invoices, during a bombshell recommendation to the Royal Commission into union corruption.

Upper House MP Cesar Melhem has been slammed over deals he made while head of the Australian Workers’ Union in Victoria that short changed members $2 million in wages in exchange for $25,000 payments to the union.

“Mr Melhem may have committed an offence against section 176 of the Crimes Act 1958 by soliciting a corrupt commission,” a submission to Royal Commission said.
The Royal Commission last night released hundreds of pages of documents with submissions from its lawyer, Jeremy Stoljar, SC.

The documents reveal:
FEDERAL Opposition Leader Bill Shorten was not accused of unlawful or criminal conduct.


THIESS John Holland chief executive Julian Rzesniowiecki may have committed criminal offences by offering a corrupt commission;

EMPLOYERS should be banned from paying union membership fees for staff, as the practice was common at Winslow constructions;

MR Melhem may have breached the Crimes Act for issuing false invoices;
THE Australian Workers Union may have committed a crime for soliciting a corrupt commission.

Mr Melhem was also criticised over the East Link road deal, in which the union was paid $300,000 a year while a deal that reduced workers’ conditions was in place.

The recommendations are expected to increase pressure on Mr Melhem’s political career. He resigned as Government Whip in June after allegations were levelled.

The East Link deal came under fierce criticism, with accusations the company paid $100,000 a year to buy industrial peace.


Labor MP Cesar Melhem.

Mr Shorten was not accused of unlawful conduct.
The pay deal, which rewarded workers “handsomely”, scrapped fixed rostered days off and limited access for the CFMEU.

The arrangement saved road builder Thiess John Holland millions of dollars in wages and the project was completed six months ahead of schedule.

But Mr Stoljar wrote that a side deal had been against workers’ interests.

“The negotiation and payment of this “side deal” involved a conflict … between the interests of the AWU on the one hand and the interests of the AWU members,” Mr Stoljar wrote.

“A very large donation from Thiess John Holland and the AWU must inevitably have weakened the AWU’s bargaining position.”

Mr Stoljar wrote that Mr Melhem, Julian Rzesniowiecki, the AWU and Thiess John Holland may have been involved in offering and soliciting corrupt payments that may have breached the Crimes Act.

Mr Melhem was criticised over invoices from construction company BMD, which were purportedly for training, but no training took place.

“It is submitted Mr Melhem acted dishonestly because knowing that no training had been provided to BMD, he caused the 2010 invoice to be issued claiming payment for such training,” the submission said.

“He did so with a view to producing a gain for the AWU in the sense that the purpose of the invoices was to procure payments of money to the AWU. Accordingly, it is submitted, he may have committed an offence under that section.” Mr Melhem, who has consistently denied wrongdoing, has been clinging on to his place in State Parliament following an unconvincing appearance at the Commission.

On the stand in June he used the phrase, “I don’t recall” 97 times in one day.
The findings of Royal Commissioner Dyson Heydon will be handed down before Christmas and it is unlikely the Labor Party will take any action before then.

Premier Daniel Andrews office has repeatedly said it will not make a running commentary on the commission.

Sam Casey, a spokesman for Mr Shorten, said: “This was a politically motivated Royal Commission set up by the Liberal Party to throw mud and smear its political opponents.”

Mr Melhem did not return calls last night.