Trade union royal commission findings released: Cesar Melhem, Kathy Jackson referred for possible prosecution

The final report of the Royal Commission into Trade Union Governance and Corruption has referred to "widespread and deep-seated" misconduct by union officials.

Commissioner Dyson Heydon delivered his final report earlier this week and the recommendations were released this morning.

Justice Heydon referred to widespread misconduct that had taken place in every jurisdiction in Australia except for the Northern Territory.

The reports detailed a long list of union officials who may have committed crimes including blackmail, bribes and threats of violence.

Justice Heydon said the conduct had taken place in a wide range of industries and unions.

"These aberrations cannot be regarded as isolated," the report said.

"They are not the work of a few rogue unions, or a few rogue officials.

"The misconduct exhibits great variety. It is widespread. It is deep-seated.

"It would be utterly naïve to think that what has been uncovered is anything other than the small tip of an enormous iceberg.

"It is clear that in many parts of the world constituted by Australian trade union officials, there is room for louts, thugs, bullies, thieves, perjurers, those who threaten violence, errant fiduciaries and organisers of boycotts.

"There has been much perjury. A huge amount of the testimony given in hearings has been false to the knowledge of the witnesses."

Jackson, Melhem among dozens referred to authorities

Justice Heydon went on to name multiple union officials, detailing various acts of misconduct for each.

More than 40 individuals and organisations have been referred to various authorities, including police, directors of public prosecutions, the Australian Securities and Investments Commission and the Fair Work Commission.

Among them was former Health Services Union national secretary Kathy Jackson, with the commission referring her to authorities to consider whether she has committed criminal offences.

It said she had used union funds for her own purposes and may have committed a crime by obtaining $250,000 from an employer by false pretences.

There was also a recommendation for an independent body with greater powers to investigate union records and finances.

Victorian Labor politician and former AWU Victorian secretary Cesar Melhem was also referred to authorities, with the commission saying he may have committed offences relating to a payment from Cleanevent and an agreement with Thiess John Holland.

The report said he was responsible for numerous actions favouring the interests of the union over its members, which may be breaches of legal duty.

However, Mr Melhem maintained he had done nothing illegal and was confident any further investigations would clear his name, describing the findings in the report as "what he expected".

Former National Union of Workers NSW secretary Derrick Belan was referred to NSW police, along with his brother Nick and their niece Danielle O'Brien in relation to possible fraud and larceny offences.

In addition, new NSW NUW secretary Wayne Meaney was also referred to police regarding the severance terms negotiated with Mr Belan.

Other people and corporations referred to police include:

• Sydney construction industry figure George Alex
• NSW CFMEU official Darren Greenfield
• Former Queensland CFMEU boss Dave Hanna
• AWU (referred to Victorian police over dealings with Cleanevent, Thiess John Holland, ACI Operations, Chiquita Mushrooms, Winslow Constructions and Downer EDI)
• Former Thiess John Holland manager Julian Rzesniowiecki, in regards to dealings with the AWU over Melbourne's Eastlink project
• John Holland Pty Ltd, Chiquita Mushrooms Pty Ltd and Winslow Constructors Pty Ltd over dealings with the AWU

The Construction Charitable Works charity, which is associated with the CFMEU in the ACT, was referred to authorities to consider revoking its status after diverting funds for non-charitable use.

Report makes 79 recommendations

Liberal senator and former employment minister Eric Abetz called on the Federal Opposition to act on the recommendations made by the commission.

"My message to Bill Shorten is raise the white flag, accept the recommendations and support the Government once and for all weeding out corruption in the trade union movement and get rid of the corrupt CFMEU from our building and construction sites and support the Australian Building and Construction Commission," Mr Abetz said.

The commission's report made 79 recommendations and contains six volumes, one of which is confidential.

The royal commission was as controversial as it was colourful, with the ACTU describing it as a "$100 million waste of taxpayers' money".

Justice Heydon faced pressure to step aside when it was revealed he had accepted an invitation to deliver a speech at a Liberal Party fundraiser.

Seven unions said it amounted to a perception of "apprehended bias".

However, Justice Heydon did not disqualify himself and dismissed the application.

The commission's terms of reference focused on governance and financial accountability.

It sat for 189 days and heard evidence from 525 witnesses in public and private hearings.

There were 75 case studies. High-profile witnesses included former prime minister Julia Gillard and Opposition Leader Bill Shorten.