Major Big Build labour hire company embroiled in fraud investigation

A company working on some of the Victorian government’s largest Big Build infrastructure projects, and with deep ties to the CFMEU, is suspected of making corrupt payments to win work on major projects across the state.

This week, detectives raided the offices of BK Labour, seizing evidence and charging a senior company figure for allegedly falsifying a document.

But the probe by Taskforce Hawk, which is dedicated to combatting crime and corruption in the construction industry, is continuing, and further charges are expected.

BK Labour is the most significant Big Build company to be targeted by police after this masthead’s Building Bad series first revealed the alleged criminal infiltration and corruption embedded in Labor’s signature infrastructure scheme.

BK Labour is a major supplier of workers across Big Build projects, including the recently opened Metro Tunnel, the Westgate Tunnel and various level crossing removal projects.

On Thursday morning, police said detectives had arrested two people and charged one of them as part of an investigation into alleged financial misconduct involving the Port Melbourne labour hire company.

BK is closely linked to the CFMEU’s so-called Irish faction and has been the subject of allegations it was improperly pushed onto major government projects by certain union officials.

Several relatives of recently departed CFMEU senior officials have worked with the company, which was also one of several labour hire firms used by the union, before its placement in administration, to put criminal gang members onto sites as union delegates and enforcers.

The company is also suspected of offering financial benefits to Big Build project supervisors in return for preferential treatment.

The police probe has been supported by Victoria’s Labour Hire Authority, which has increased its efforts to combat corruption and worker exploitation in the construction sector after the Building Bad revelations.

In a statement, police said a warrant was executed on Wednesday at the company’s headquarters and a 66-year-old Middle Park man and a 66-year-old Docklands woman were arrested.

The man was charged with one count of using a false document and bailed to appear at Melbourne Magistrates’ Court in June.

“Police will allege invoices were falsified and are investigating a number of other payments and cash withdrawals,” the statement said. “The arrests are part of a broader Taskforce Hawk investigation into the labour hire industry.”

The woman was released pending further inquiries.

As a part of its response to revelations in the Building Bad series, the union’s administration has moved to clean up the corruption-tainted labour hire industry, sacking a powerful union boss suspected of taking financial inducements from labour hire companies. It has also flagged reforms to lessen the sector’s reliance on temporary labour.

This masthead has previously reported extensive allegations of labour hire companies involved in corruption on the Big Build, including a firm linked to gangland figure Billy Mitris.

Gangland identities also have deep ties to Big Build labour hire subcontractors, with Mick Gatto involved in the M-Group and bikie figure Toby Mitchell previously aligned to MC Labour.

Allegations of “ghosting” and kickbacks have also previously rocked the Allan government’s signature rail and road projects, prompting the state opposition to commit to a royal commission if elected.

BK Labour recently wrote to clients, in a letter obtained by this masthead, to say it was voluntarily winding up in a “planned and orderly process” that would not adversely affect its creditors.

The letter said the decision was taken after “much contemplation”, so that the company’s directors could retire.

BK Labour declined to comment when contacted on Thursday.

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