Disgraced CFMEU boss Zach Smith set to keep government-run industry forum slot

The Albanese government has been probed over why the embattled CFMEU’s Labor-backed boss, who organised a meeting with underworld figure Mick Gatto, remains a member of a government-run construction industry forum.

Zach Smith, who represents the CFMEU at the government’s National Construction Industry Forum chaired by Employment Minister Amanda Rishworth, apologised last week for sending a subordinate to meet Gatto in September.

The government distanced itself from the union boss, who was branded as the face of a new and reformed CFMEU, suggesting the minister had not met with Mr Smith since June, months before recent revelations about his conduct.

Senator Murray Watt, who was acting for the Minister of Employment and Workplace relations at Thursday’s senate estimates, was unable to confirm whether Mr Smith would be invited back to the forum, suggesting it was “a matter for the CFMEU”.

“I think it’s been reported that the administrator had significant concerns about Mr Smith’s actions … (and) has begun work to issue a new policy,” he told estimates.

Coalition backbencher Maria Kovacic quipped during the hearing that she would’ve thought “there would be a required policy in relation to meeting organised crime figures”.

Department of Employment and Workplace Relations (DEWR) deputy secretary Greg Manning said it was too early to say whether Mr Smith would play a role in the forum going forward.

“We understand the administrator is looking into it … once that work runs its course, the department would be in a position to give advice to the minister,” Mr Manning said.

The embattled union’s administrator Mark Irving, who was appointed by the federal government to clean up the CFMEU construction division, confirmed an investigation into the scandal had been ordered.

Botched AI report ‘unacceptable’

The DEWR will recover just $98,000 of the $440,000 charged by consulting giant Deloitte for a report riddled with artificial intelligence-related errors.

A senate estimates hearing on Wednesday was told that Deloitte claimed in an email to the department that the citation errors were a result of transcription issues.

The consulting firm then said it reached out to the Department of Finance suggesting employment and workplace relations officials were aware that AI had been used, a claim that the DEWR denies.

Mr Watt said that the government had done an “enormous amount” to reduce work traditionally done by external consultants.

“I think that this particular case is a clearly unacceptable act from a consulting firm,” he said.

“I think its highly appropriate they are not paid in full … We of course expect departmental processes ensure the quality of work received by consultants is high.”

Greens senator Barbara Pocock retorted that evidence showed government spending on external consultants had increased from the Morrison government.

“It isn’t the case that contracting on consulting has been reduced, and this case of a $440,000 payment for a six-month contract … is deeply shocking,” she said.

The report given to the department in June related to an IT system used to automate welfare penalties and payment pauses and contained non-existent academic references and fabricated Federal Court judgments.

“My people should not be checking a third-party provider’s footnotes,” department secretary Natalie James said.

“This is a critical piece of work we need to be able to rely on … I’m struck by the lack of any apology to us.”

The department confirmed it only became aware of the errors after media scrutiny around the report.

Ms Pocock said the consulting firm should have informed the DEWR of the errors and should issue a public apology to Australians.

“Deloitte’s work would not pass a first-year university assessment test. What is the government paying for here?” she said.

“If the contractors outsourced to do government work are further outsourcing that work to AI – at the bare minimum, you’d expect this work to be checked, that’s not too much to ask.”