'Is that a threat?': Karl comes down on CFMEU secretary over corruption allegations

The Construction, Forestry and Maritime Employees Union (CFMEU) has placed its Victorian branch into administration following allegations the organisation was overrun by underworld figures.

The major move comes after a joint investigation by Nine newspapers and 60 Minutes found the prime minister and Victorian premier were sent documents in 2022, detailing evidence that officials from the construction union were threatening violence and black banning certain firms from taxpayer-funded projects in what could amount to corruption.

While it's unclear if Anthony Albanese actually saw the letter that was sent to his office, Jacinta Allan has labelled the alleged behaviour as "thuggish and appalling" as Victoria's anti-corruption watchdog investigates.

READ MORE: Premier to refer CFMEU's Victorian branch to anti-corruption watchdog

National secretary, Zach Smith, who has now assumed all senior powers in the CFMEU, was grilled on Today this morning about the alleged corruption and his organisation's donations to the Albanese Government, which have been paused following the scandal.

"How long have you been covering up your union's alleged corruption?" host Karl Stefanovic asked.

But Smith said he was only made aware of the allegations late last week and maintained there is no place in the union for criminality and any credible claims brought forward would be tested.

"Anyone who is found to have done the wrong thing will be removed from our ranks - the allegations that have been aired by this Nine investigation were only brought to the union late last week, the union has covered nothing up," Smith said.

But Karl questioned how Smith could have not known anything about the alleged corruption sooner and questioned him taking the "I know nothing defence".

"It defies belief that you knew nothing about the allegations, so it's either complicit, or just ignorant," Karl said.

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But with the CFMEU now facing the very real possibility it could be deregistered if the allegations are proven, Smith hit back at Karl's suggestion he knew about it and said the union and its leaders "cannot be legitimately accused of trying to cover up any wrongdoing".

"Anyone who is seriously contemplating deregistration needs to understand exactly what that means, it would be a disaster for workers and they would be the real victims under any such proposal," he said.

"It sounds like you are threatening now," Karl suggested.

But Smith argued that it is not him making a threat, but the reality of the situation if deregistration occurs.

"I think it's pretty ludicrous to say that was a threat Karl, deregistration would be a disaster for workers, they wouldn't have a voice on safety and they wouldn't have a voice on wages and conditions," Smith said.

Hear more of Karl's interview with the CFMEU National Secretary in the video above