It was a scandal inevitably dubbed "spermgate" within the powerful Construction, Forestry, Mining and Energy Union, and it is likely to go all the way to the Trade Union Royal Commission.
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The IVF treatment for the partner of an organiser from the CFMEU's Queensland branch was paid for, in part, by two building sub-contractors.
The organiser, Mick Myles, was stood down by the union as part of the fall-out, while then national president of the construction division of the CFMEU Dave Hanna, who played a central role in the scheme, was found guilty of "seriously inappropriate" conduct and resigned.
An internal CFMEU report, obtained by Fairfax Media, details a bizarre chain of events, which began early this year when Mr Myles and his partner started IVF treatment in a bid to have another child.
Shortly afterwards, Mr Hanna told another CFMEU organiser to secure funds from sub-contractors to pay for the treatment, according to the internal report by senior union official Leo Skourdoumbis.
The payments included $1000 from D.B. Scaffolding & Rigging Australia, and $2000 from Global HR into the union charity fund.
This $3000 formed part of $13,072 paid from the charity fund for the IVF treatment between February and April this year, nearly all of it to Queensland Fertility Group.
"It is clearly apparent that Mr Hanna has sought to cause organisers to obtain/procure from sub-contractors funds for the benefit of Mr Myles," the report said.
"Whilst the procurement of the funds was not for Mr Hanna's personal benefit, I am satisfied that Mr Hanna's conduct was seriously inappropriate."
The report said it was "appropriate" that "Mr Hanna should be sanctioned for his conduct".
While Mr Myles was not the subject of the inquiry, the report noted he had been stood down by Queensland secretary Michael Ravbar.
Mr Myles could not be reached for comment.
Mr Skourdoumbis, in his report, recommended Mr Myles should repay the $3000 to the sub-contractors.
Mr Hanna resigned from the union last month, and is currently under scrutiny over other matters at the Royal Commission.
The inquiry heard on Monday that the cost of tradesmen and supplies to build a new house in the outer suburbs of Brisbane for Mr Hanna were billed to major property developer Mirvac.
Counsel assisting the inquiry, Sarah McNaughton, said it would also probe whether secret commissions were provided to Mr Hanna when he was a union official.
"The home that was constructed is large," Ms McNaughton said. "The main block having a total area of some 505 square metres.
She said the house had four king-size bedrooms, four bathrooms, reverse cycle air-conditioning, polished concrete floors, walk-in wardrobes, walk-in pantries, a second butler's kitchen, a three-car garage and a 12-metre salt-water pool.
It is understood the Royal Commission has also been provided with a copy of the union's internal report.
