THE Canberra-based CFMEU’s controversial charity has been censured by the Australian Charities and Not-for-Profits Commission (ACNC).

The Construction Charitable Works is a beneficiary of the ACT’s Chief Minister’s Charitable Fund grants program, which is managed by Hands Across Canberra.

The charity submitted to an enforceable undertaking in mid-October amid formal concerns around the charity’s strategic planning and operations, its board meetings, how it manages conflicts of interest, how it manages related party transactions and its financial management. 

It’s not the first time Construction Charitable Works’ finances has been questioned, and in 2015 the Royal Commission into trade unions queried donations from the Tradies clubs to two CFMEU-run training arms, including Construction Charitable Works. 

This year questions were raised around the $7500 Chief Minister’s Charitable Fund grant given to Construction Charitable Works, which says it provides a range of support services for CFMEU members, their families and the communities. 

In November, Opposition Leader Alistair Coe used the annual report hearings in the Legislative Assembly to question Chief Minister Andrew Barr about the fund, and why it had handed $7500 to a charity linked to the ACT’s construction union. 

Mr Barr said he had no role in choosing beneficiaries through the fund, which gets its money from a levy on gaming-machine revenue.

Hands Across Canberra, CEO Peter Gordon, was this afternoon (December 16) unaware of the undertaking against Construction Charitable Works. 

“I’m not aware of any particular action that’s been taken so I can’t comment,” Mr Gordon says.

“Hands Across Canberra has a very clear process of inviting charities to be registered with us.  

“With respect to Construction Charitable Works, they applied for a grant earlier in 2019 and as with all applications, the board went through a thorough assessment process and we were not aware of any issues at that time.”

To remain registered with the ACNC the commission says the Construction Charitable Works must must meet seven standards such as creating and implementing a policy for conflicts of interest, and reviewing its financial management policies, processes and procedures to ensure that payments, such as invoices for services provided, are authorised and supported by sufficient documentation. 

Other standards include creating and implementing a policy for managing related party transactions, which will outline steps such as getting independent advice about a fair price and stating how the arrangement will be in the charity’s best interests.

Before the enforceable undertaking, Construction Charitable Works took remedial actions to improve its governance, including stopping its involvement in training services and becoming exclusively active in the welfare area.