Without a Royal Commission, we won’t know the scale of the corruption in Victoria’s Big Build
- Written by: Weekend Times
Victoria’s Big Build was supposed to be just another, if very expensive, road and rail infrastructure project. But it’s been plagued by violence, intimidation and organised criminal behaviour.
An independent
investigation has shown organised crime and outlaw motorcycle gangs penetrated major government building projects via the CFMEU (the Construction, Forestry and Maritime Employees Union), driving up costs through extortion, fixed procurement deals and “ghost shifts” – labour hire companies charging for shifts that were never worked.
This corruption has reportedly cost Victorian taxpayers around $15 billion, but the Allan government disputes this sum.
Premier Jacinta Allan has said she is “deeply sorry” and admitted that criminals have infiltrated some of Victoria’s largest construction projects. The CFMEU was placed into administration in 2024.
But the headlines keep coming. With the Allan government under significant political pressure for its handling of the issue, corruption is likely to be a big issue in the looming November state election.
What do we know so far?
A report by the investigator of the CFMEU, Geoffrey Watson, found there was both ad hoc corruption by former organisers and delegates, and systemic corruption involving collaboration by some in the union with outlaw motorcycle gangs and other crime outfits. The union and criminal actions on worksites inflated project costs.
After the union was placed in administration, threats were made against the life of administrator Mark Irving, ACTU Secretary Sally McManus, then-Workplace Relations Minister Murray Watt, and The Age’s investigative journalist Nick McKenzie.
What is being done to deal with it?
Allan referred the Big Build to the Victorian anti-corruption watchdog in 2024.
But the agency cannot investigate this, as it lacks “follow the money” powers to investigate projects subcontracted to the private sector.
By contrast, the New South Wales Independent Commission Against Corruption (ICAC) has these powers.
Allan has confirmed laws will be passed to give Victoria’s watchdog these powers, which will operate retrospectively.
She’s also said Victoria police have laid more than 90 criminal charges, including against outlaw bikies, senior union officials, minor gangland figures and labour hire company owners. The Labour Hire Authority has cancelled the construction licences for 164 firms.
There have been calls by the opposition and prominent experts for a royal commission on the Big Build, as allegations of corruption have intensified.
This has been predictably resisted by Allan.
Is this enough?
What we don’t know at this stage is how much the Victorian government knew about – or was complicit in – the corruption.
Allegations have surfaced about the premier approving an $837 million payment based on CFMEU demands.
Further allegations have also emerged about Allan when she was transport minister. Media reporting alleges in 2022 she applied ministerial pressure to enable the union to hire a corrupt labour hire company, costing the taxpayer $2 million more than the alternative firm.
Allan has denied any wrongdoing.
The full extent of corruption and government involvement will only be uncovered by an independent inquiry with coercive powers.
For instance, the Costigan Commission on the Painters Dockers Union successfully exposed numerous crimes in the 1980s, including a string of murders, assaults, tax fraud networks, drug-trafficking syndicates and intimidation.
The public hearings brought the issue to light, and forced the government to act on its recommendations.
Getting to the bottom of the rot
The Victorian government’s preference to sweep this under the carpet is indefensible. With this scale of public money wasted, criminality and deep-rooted corruption, it is necessary to fully ventilate the issue.
The police are able to arrest those who have committed crimes, but will not be able to uncover government involvement in this sorry saga. Its remit is also confined to criminality, and not “grey” corruption (unethical behaviour that breaches integrity but doesn’t meet the strict legal definition of criminal conduct), such as conflicts of interest, “jobs for mates” or pressure to award contracts that don’t offer value-for-money.
In this context, a royal commission, although expensive, is the appropriate way to deal with the issue in a public forum. An independent commissioner with coercive powers is required, given the level of criminality of some likely witnesses.
The premier’s promises to change the culture rings hollow if they’re not backed by firm repercussions and holistic reform proposals.
Victoria is deep in debt. This is not helped by the levels of corruption in the Big Build projects.
The public has a right to know what has happened, be assured that criminal behaviour is not explicitly or implicitly condoned by government, and understand how we can avoid such ignominious issues in the future.
Yee-Fui Ng has received funding from anti-corruption commissions and electoral commissions for several projects.
