A former union organiser accused of blackmailing the director of a Canberra formwork company is under investigation for alleged payments involving other construction sector figures, a court has heard.
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The ACT Magistrates Court heard Halafihi "Fihi" Kivalu is alleged to have collected about $200,000 in cash from about six people when he worked as a CFMEU official.
Mr Kivalu was arrested last Thursday afternoon as he left a Civic building after giving evidence before the royal commission into unions.
He was charged with two counts of blackmail.
He entered pleas of not guilty to both charges, and applied for bail before Magistrate Peter Dingwall on Wednesday.
Court documents said Mr Kivalu took $50,000 from the formwork contractor to win work on a Yarralumla construction site.
The accused allegedly told the contractor that if he did not pay, the job would go to a rival firm.
The contractor then won the job and the payments were allegedly made in $10,000 increments between March 2012 and May 2013.
Court documents said the contractor then won a job for a Braddon project in late 2013, but came under pressure to sign a new enterprise agreement with the CFMEU.
He believed he was being targeted by the union, so allegedly called Mr Kivalu for information and help.
During a phone call, the defendant allegedly said: "Look, I sorted it, but you are going to have to give me some money ... give me some money to get some people off your back."
The pair allegedly agreed on a price of $20,000, with the contractor believing he had no choice, or he would continue to face the threat of job sites being shut down.
Court documents also said covert phone intercepts picked up Kivalu and the contractor, and the defendant and his wife, discussing the payments.
The prosecution on Wednesday opposed Mr Kivalu's bail application on the grounds he could interfere with an investigation or witnesses.
A police spokesman told the court officers were still investigating some alleged payments that were outlined by Canberra tradesmen at the royal commission last week.
Prosecutor Sam McLaughlin argued the accused could interfere with those inquiries, the potential witnesses, or evidence.
Mr McLaughlin also said there was a risk Mr Kivalu would continue to demand cash payments, as his financial position was poor.
But defence lawyer, Toni Tu'ulakitau, said his client had strong links to the Canberra region, with a family, job, property, and links to a church and football clubs.
Mr Tu'ulakitau said the risks could be mitigated through strict bail conditions, which Mr Kivalu would be willing to sign.
Mr Dingwall granted Mr Kivalu bail, on strict conditions he abide by a curfew, surrender his passport, and not contact or approach a long list of potential witnesses, including CFMEU officials.
He will reappear in September.
