Key Takeaways
- The Victorian Labour Hire Authority cancelled the licence of 24‑7 Personnel after discovering it was secretly managed by convicted murderer Jie Zhu, who was not declared as a relevant person under the Labour Hire Licensing Act.
- 24‑7 Personnel had secured lucrative work on the $4 billion Golden Plains Wind Farm and received a $190 k Allan‑government grant via the Australian Workers Union (AWU) despite ties to convicted drug traffickers Jarrod Hennig and Osama Elsayed, and extortionist Bassem Elsayed.
- The AWU promoted 24‑7 as a “key partner” in a women‑in‑construction program, highlighting its two female directors while the firm’s background was controlled by individuals with serious criminal convictions.
- Regulatory action against 24‑7 is part of a broader crackdown: the Labour Hire Authority has cancelled licences of five major labour‑hire firms and dozens of smaller operators linked to underworld figures or corrupt CFMEU officials on taxpayer‑funded projects.
- Government officials, including Premier Jacinta Allan, cite the regulator’s interventions as evidence of their response to crime and corruption, while the opposition calls for a royal commission and stricter limits on labour‑hire use in public works.
Background on 24‑7 Personnel and Its Criminal Links
24‑7 Personnel presented itself as a small, family‑run labour‑hire company overseen by two female directors. Investigative reporting revealed that, behind this façade, the firm was actually managed by convicted drug trafficker Jarrod Hennig (who used the alias Jarrod Morgan) and was secretly controlled by murderer Jie Zhu. Zhu, sentenced in 2011 to 19 years imprisonment for the stabbing death of a 17‑year‑old, was not disclosed to the Labour Hire Authority as a “relevant person,” violating the Labour Hire Licensing Act. The company also had connections to Osama Elsayed, another drug trafficker, and Bassem Elsayed, an extortionist, further entangling it with organised‑crime networks.
Government Funding and the Golden Plains Wind Farm Contract
In mid‑2023, the masthead reported that 24‑7 Personnel had secured a major role on the Golden Plains Wind Farm, Australia’s largest wind‑energy project backed by $4 billion of federal funding. The company’s involvement was facilitated through an agreement with the Australian Workers Union, which had received a $190 000 Allan‑government grant aimed at creating “meaningful pathways for women” in construction. Despite the grant’s stated purpose, the AWU listed 24‑7 as a key partner, and the union’s newsletters praised the firm’s female directors for their enthusiasm in the “Empower 24‑7” initiative, obscuring the criminal backgrounds of the men actually directing the business.
The AWU’s Role and Misleading Representations
The Australian Workers Union not only facilitated the grant but also entered into enterprise‑bargaining agreements with 24‑7, signed by Hennig under his middle name, Morgan. Photographs showed Hennig alongside AWU delegates and Bassem Elsayed at a Melbourne Cricket Ground lunch, signalling close ties. The AWU’s Victorian secretary, Ronnie Hayden, later stated that the union was unaware of the criminal associations when the grant was awarded, though he acknowledged the revelations highlighted a systemic issue with labour‑hire firms on public projects and called for reform, including a ban or significant reduction of such contractors on government work.
Regulatory Investigation and Licence Cancellation
Following the exposé, Victoria’s Labour Hire Authority launched an inquiry into 24‑7’s compliance with licensing requirements. The investigation found that the company had knowingly provided false and misleading information about Jie Zhu’s role and had failed to declare him as a relevant senior decision‑maker. Consequently, on Friday the Authority cancelled 24‑7’s licence to operate as a labour‑hire supplier on Victorian infrastructure projects, citing breaches of the Labour Hire Licensing Act and noting that the false declarations constituted a criminal offence under the act.
Broader Pattern of Labour‑Hire Misconduct
24‑7 Personnel is the fifth major labour‑hire firm targeted by the regulator after the masthead’s reporting exposed similar misconduct in other companies. The Labour Hire Authority has also moved to cancel the licence of Women in Construction (WIC), another firm revealed to be run for years by men with serious criminal convictions, although WIC continues to supply workers to projects like the North East Link. Dozens of smaller labour‑hire operators have had licences revoked, though most are not among the dozen major firms that dominate the state’s $100 billion Big Build program. Several of those major firms have been linked to underworld figures or corrupt CFMEU officials, underscoring a pervasive risk of criminal infiltration in publicly funded construction.
Implications for the Allan Government and Public Trust
The scandal has intensified pressure on Premier Jacinta Allan’s administration, with the state opposition accusing the government of a cover‑up and pledging to call a royal commission if elected in November. Allan has defended her government’s response by pointing to the Labour Hire Authority’s actions as proof that oversight mechanisms are working. Nonetheless, the revelations raise serious questions about due diligence in grant awarding, contract oversight, and the effectiveness of existing safeguards designed to prevent taxpayer money from flowing to enterprises linked to violence, drug trafficking, and extortion.
Conclusion and Outlook
The cancellation of 24‑7 Personnel’s licence marks a significant, albeit belated, step in addressing the nexus between labour‑hire firms and organised crime on Victoria’s infrastructure projects. It highlights the need for stricter verification of beneficial owners, enhanced transparency in grant processes, and possibly legislative reforms to limit the reliance on labour‑hire contractors for public works. As investigations continue and further firms come under scrutiny, the outcome will likely shape future policy on how the state balances the flexibility of labour‑hire models with the imperative to protect public funds from criminal exploitation.