Mr Melhem’s lawyer, James Higgins of Gordon Legal, said Mr Melhem would defend himself against the claims in the Federal Court and looked forward to addressing the matters. Loading “These old allegations stem from Tony Abbott’s failed royal commission into trade unions.” State Opposition Leader Michael O’Brien called on the Premier to “immediately stand down” Mr Melhem from his position as chair of a parliamentary committee that examines environmental laws. “Mr Melhem is under a corruption cloud … Mr Andrews needs to explain why Victorians should continue to have confidence in Mr Melham to continue as a Member of Parliament.”

An Andrews government spokesperson declined to comment as “this matter is before the courts.” Some of the alleged misconduct occurred when former opposition leader Bill Shorten ran the union prior to 2007, though he is not charged with an offence. If found guilty of several civil breaches of the Fair Work Act, Mr Melhem could face large financial penalties. The AWU, which was also charged as part of the case, settled with the ROC last week. Penalties against the AWU are expected to be handed down at a later date. Cesar Melhem as AWU state secretary. Credit:Jessica Shapiro

Mr Melhem, who declined to comment, will defend himself against charges that as leader the AWU received kickbacks from companies in exchange for negotiating workplace deals that dudded union members, as well as artificially inflating the union’s membership by more than 2000 people. Falsely inflating membership numbers can give ALP-affiliated unions - and senior union officials - more influence in internal Labor Party forums.The Transport Workers Union in 2018 was fined more than $270,000 for inflating its membership by more than 20,000 people. Loading Mr Melhem is also accused of authorising payments to the union purportedly for OH&S training for workers, that were in fact used to pay for membership fees for workers, some of whom were being signed up without their knowledge. The legal action covers Mr Melhem’s dealings with six companies or organisations: CleanEvent, Winslow Constructors, BMD Constructions, Geotechnical ­Engineering, the Australian Netball Players’ ­Association and the Australian and Victorian jockey associations.

In 2010, Mr Melhem signed a deal with cleaning business CleanEvent for $25,000 yearly payments to be paid to the union in exchange for the company paying allegedly substandard wages that dudded workers of $1 million each year. In his court defence, Mr Melhem admits that he did not disclose the secret deal with CleanEvent to members. In deals worth hundreds of thousands of dollars, Mr Melhem’s union received cash from aforementioned companies to conduct OH&S training, which were actually lodged as membership income for hundreds of members. Mr Melhem will admit to receiving the payments as fees for new members, but will deny any misconduct because the OH&S payments did not actually “identif[y] particular training and/or inspections”, according to his defence. Under Mr Melhem’s watch, more than 100 jockeys including Melbourne cup winners Michelle Payne and Kerrin McEvoy were signed up allegedly without their knowledge.

Melbourne Cup Winner Michelle Payne was allegedly signed up as a union member without her knowledge Credit:Josh Robenstone Mr Melhem was secretary of the AWU from 2006 until being appointed as a representative for the Western Metropolitan Region in the Victorian parliament in 2013. In 2015, he resigned from his position as parliamentary whip after the trade union royal commission revealed his behaviour as a union leader. Mr Melhem’s troubles started in December 2012 when an investigation by The Age first revealed details of an employer-bankrolled slush fund, Industry 2020, established by Mr Melhem in 2008. The Age revealed how the fund was used for interference in the elections for the disgraced Health Services Union, and for ALP branch-stacking.

In 2014, the controversy over Industry 2020 brought Mr Melhem to the attention of the royal commission where it emerged he had also used the slush fund for spending on expensive international restaurants, hotels, electronics, cigars and alcohol. Do you know more? Send us a confidential and encrypted message on Journotips