ROYAL COMMISSION INTO TRADE UNION GOVERNANCE AND CORRUPTION

CFMEU NSW

Level 5, 55 Market Street, Sydney, NSW 2000

On Monday, 1 September 2014 at 10.00am

Before the Commissioner: The Hon. John Dyson Heydon AC QC

Counsel Assisting: Mr Jeremy Stoljar SC

Mr Michael Elliott

Instructed by: Minter Ellison, Solicitors

.01/09/2014 1

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1 THE COMMISSIONER: Yes, Mr Stoljar.

2

3 MR STOLJAR: Commissioner, the terms of reference authorise

4 you to enquire into any conduct which may amount to

5 a breach of any law by an officer of a trade union, and

6 into any bribe, secret commission or other unlawful payment

7 or benefit arising from any arrangements or understandings

8 between an officer of a trade union and any other party.

9

10 Today's public hearing forms part of an investigation

11 into whether officers of the NSW branch of the Construction

12 and General Division of the CFMEU have or have had

13 relationship with Mr George Alex, a person with

14 well-publicised connections with organised crime.

15

16 One aspect of this inquiry is whether officers of the

17 NSW branch of the Construction and General Division of the

18 CFMEU have received secret commissions or other benefits

19 arising from arrangements or understandings with Mr George

20 Alex and companies associated with him.

21

22 Mr Brian Parker is the Secretary of the NSW Branch of

23 the CFMEU. Mr Darren Greenfield is an elected organiser of

24 the branch who operates mainly in the scaffolding sector of

25 the construction industry in Sydney. Questions have been

26 raised about the relationship between each of these CFMEU

27 officers, other officers of the CFMEU, Mr Alex and

28 companies associated with him.

29

30 Mr Alex is an undischarged bankrupt and, as such, may

31 not act as a director of a company. Notwithstanding this

32 fact, Mr Alex has a substantial interest in companies

33 operating in the commercial industry in New South Wales and

34 exercises considerable control over their affairs.

35

36 One of those businesses is a scaffolding business run

37 by the company called Elite Action Scaffolding (NSW) Pty

38 Ltd. The other is a labour hire business, which is the

39 kind of business the union opposes and seeks to limit in

40 number. Mr Alex' labour hire business is run through

41 Active Labour Pty Ltd.

42

43 In the last decade Mr Alex has used no less than four

44 different companies called "Active" to run a labour hire

45 business. The previous companies have all failed, one

46 after the other. Active Workforce Pty Ltd was deregistered

47 in July 2012. It had an EBA with the CFMEU. Active

.01/09/2014 2

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1 Workforce (NSW) Pty Ltd went into administration in 2012.

2 It too had an EBA with the CFMEU. It went into

3 administration only halfway through the term of its EBA.

4 Active Site Payroll Services (NSW) Pty Ltd had liquidators

5 appointed in August 2013. It too had an EBA with the

6 CFMEU. It too went into external administration before

7 reaching the halfway point of the term of the EBA.

8

9 As for the scaffolding business, it also failed and

10 then rose up again under a new company. Elite Holdings

11 Group Pty Ltd was the first vehicle through which this

12 business was run. It went into liquidation in July 2013.

13 It had an EBA with the CFMEU. It collapsed before the

14 first year of that EBA had expired. The scaffolding

15 business is now run by a company called Elite Access

16 Scaffolding. That company was granted an EBA by the CFMEU

17 as the previous company was being wound up.

18

19 It has been widely publicised that Mr Alex has close

20 relationships with convicted criminals. He has reportedly

21 attended functions with the likes of Mr Khaled Sharrouf and

22 Mr Bill Fatrouni, each of whom have previously been

23 convicted and gaoled for serious criminal offences.

24 Reports of this kind have been relatively common since

25 early 2013, however the CFMEU continues to deal with

26 Mr Alex and businesses associated with him.

27

28 Before proceeding further, I pause to recall the

29 evidence of Mr Brian Fitzpatrick. A former organiser in

30 the employ of the NSW branch of the CFMEU, his evidence was

31 to the effect that he began asking tough questions of

32 Mr Parker and other union officials about Mr Alex in 2013,

33 at a time when the CFMEU was on the brink of granting the

34 latest Active and Elite companies new enterprise

35 agreements, the previous companies having just collapsed.

36 After doing so Mr Fitzpatrick received a violently worded

37 telephone call from Mr Greenfield. Mr Fitzpatrick was in

38 due course marginalised and pushed out of the union.

39

40 Why was Mr Fitzpatrick treated in this extreme way?

41

42 Why has the CFMEU continued to award EBAs to Mr Alex'

43 companies given the repeated failures of his businesses,

44 his ongoing publicised connections with criminal

45 identities, and the labour hire nature of his business to

46 which the union is opposed?

47

.01/09/2014 3

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1 Among other things, the Commission is investigating

2 whether Mr Alex and others associated with the Active and

3 Elite businesses have made payments to or conferred other

4 benefits on certain union officials.

5

6 To take and receive such payments or benefits would be

7 unlawful and a breach of the union's professional

8 standards. It would constitute, amongst other things, an

9 offence under section 249B of the Crimes Act 1900 (NSW),

10 and a breach of sections 286, 287 and 288 of the Fair Work

11 (Registered Organisations) Act.

12

13 The Commission has obtained records from the NSW

14 Police which appear to bear on the nature and extent of the

15 relationship between Mr Alex and officers of the NSW branch

16 of the CFMEU. Individuals connected to these records have

17 declined to provide statements to the Commission. It has

18 therefore been necessary to summons those persons to compel

19 them to answer questions about these records. That is the

20 purpose of today's hearing.

21

22 At the conclusion of the evidence of these witnesses,

23 parties who think they have an interest in the matters

24 raised may seek directions for the service of materials in

25 accordance with the procedure set out in Practice

26 Direction 1.

27

28 Commissioner, unless there are any new appearances or

29 applications, the first witness is Mr Doug Westerway.

30

31 THE COMMISSIONER: Mr Agius, your team is as before?

32

33 MR J AGIUS: Yes.

34

35 <DOUGLAS WESTERWAY, sworn: [10.10am]

36

37 <EXAMINATION BY MR STOLJAR:

38

39 MR STOLJAR: Q. Could you tell the Commission your full

40 name?

41 A. Yes, Douglas Westerway.

42

43 Q. Is it Westerway, e-r-w-a-y?

44 A. That's correct.

45

46 Q. You are a resident of New South Wales?

47 A. Yes.

.01/09/2014 4 D WESTERWAY (Mr Stoljar)

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1

2 Q. And what is your current occupation?

3 A. Project manager.

4

5 Q. You have been summonsed to attend and give evidence

6 today?

7 A. That's correct.

8

9 Q. The Commission is in the possession of certain

10 documents seized by the NSW Police. Those documents were

11 seized from businesses with which you had some association

12 last year and I just want to be clear, when you're giving

13 your evidence, that those documents will be closely

14 scrutinised for the purpose of assessing whether the

15 answers you give today are truthful. Do you understand

16 that?

17 A. I understand that.

18

19 Q. I want to make sure that you fully understand that the

20 law provides that as a person who has been summonsed to

21 give evidence to this Commission, you are under an

22 obligation to tell the truth?

23 A. I understand that.

24

25 Q. And there are serious penalties if a witness, who has

26 been summonsed before the Commission to tell the truth,

27 does not do so. You understand that?

28 A. Yes, I do.

29

30 Q. As I indicated before, last year you had some

31 involvement in a company, or a number of companies which

32 have the name Elite?

33 A. That's correct.

34

35 Q. Scaffolding businesses?

36 A. Yes.

37

38 Q. Perhaps before we get to that, I'll just get a little

39 more detail about your background and experience. What did

40 you do after you left school?

41 A. I joined the Police Force.

42

43 Q. How long were you in the Police Force?

44 A. Eleven years.

45

46 Q. What rank did you obtain?

47 A. Detective senior constable.

.01/09/2014 5 D WESTERWAY (Mr Stoljar)

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1

2 Q. So you were in the Force for about 11 years, and when

3 did you leave the Force?

4 A. 1992.

5

6 Q. What did you do after that?

7 A. I became a builder.

8

9 Q. Did you receive some qualification in that regard?

10 A. Yes.

11

12 Q. When you say "became a builder", you are a licensed

13 builder?

14 A. Yes.

15

16 Q. Did you then carry out work as a builder?

17 A. Yes.

18

19 Q. Did you work for any third parties?

20 A. Yes. I worked as a construction manager for some

21 firms.

22

23 Q. Who were the firms?

24 A. Eden Bray.

25

26 Q. And how long did that go on for?

27 A. Four or five years.

28

29 Q. In due course you did some work for a scaffolding

30 business. How did you become involved in Elite Access

31 Scaffolding?

32 A. I was introduced to George Alex.

33

34 Q. Can you tell me the circumstances in which that came

35 about?

36 A. I was doing a building consultancy report on some

37 units at Waverley.

38

39 Q. Who were you doing that for?

40 A. For an accountant, Jerry Kekatos, who was the owner of

41 the property. There were some difficulties with the

42 building and I was doing a report as to the defects and

43 problems with the construction.

44

45 Q. When were you doing that?

46 A. In February, early March, of 2013.

47

.01/09/2014 6 D WESTERWAY (Mr Stoljar)

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1 Q. And what happened then?

2 A. I was there for some weeks. It was quite

3 a complicated investigation and report to do. I had to go

4 to each unit, there were 26 of them, I think, and there was

5 a foreman there, or a caretaker, who let me into the

6 buildings and show me around, and I got to know him and

7 he - he suggested to me that he wanted to introduce me to

8 somebody called George Alex.

9

10 Q. Had you heard of Mr Alex before that time?

11 A. No, not at all.

12

13 Q. So I take it that you had had no dealings with him at

14 that point?

15 A. No.

16

17 Q. How did you come to meet Mr Alex

18 A. A meeting was arranged and I went across to his house

19 at Burwood.

20

21 Q. When did that take place?

22 A. Either late February or early March of 2013.

23

24 Q. Who was present at the meeting?

25 A. George Alex, Joe Antoun and a range of other people

26 I didn't know.

27

28 Q. How many other people?

29 A. Oh, normally there would have been six or seven people

30 there. Mace Hourani was there, I'm sorry, Mace Hourani.

31

32 Q. This was all at this first meeting?

33 A. Yes.

34

35 Q. Can you just tell me the layout of the house a little

36 bit? Where did the meeting take place?

37 A. There's a balcony at the back of the house, an

38 undercover balcony, and there is a long meeting table on

39 that balcony, and that's where nearly all the meetings took

40 place.

41

42 Q. Were there gentlemen just sitting around the table?

43 A. That's correct.

44

45 Q. Were they there when you arrived?

46 A. Yes.

47

.01/09/2014 7 D WESTERWAY (Mr Stoljar)

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1 Q. Were they there when you left?

2 A. They came and went. So it wasn't a static kind of

3 meeting, you know, people would come and join the table and

4 leave the table and - it was fairly fluid.

5

6 Q. Let's just focus on this first meeting. What did

7 Mr Alex say to you about the work he required?

8 A. Again, it was some things from George Alex and some

9 things from Mace Hourani because George would often leave

10 the table irregularly, that's the best way to put it, he