Premier under fire over Big Build corruption as calls for royal commission grow

Pressure is mounting on Premier Jacinta Allan over her knowledge of corruption complaints surrounding Big Build projects.

Allan has rebuffed accusations she misled voters, after it was revealed serious allegations were secretly lodged with government.

The premier is facing mounting calls to reveal what she knew about the allegations of widespread rorting and why she failed to act, amid renewed calls for a royal commission into unlawful behaviour on major government projects.

The Liberals have pledged to establish a royal commission to investigate corruption on major public projects in Victoria, after former IBAC commissioner Robert Redlich told this masthead he supported such an inquiry.

This week, this masthead revealed through leaked correspondence that for years, from early 2023 until as recently as June this year, government officials had received repeated warnings about corruption in the Big Build program.

Some of the wrongdoing was detailed in spreadsheets maintained by the government’s multimillion-dollar Level Crossing Removal Project, where officials were told about extortion and “blackmail” tactics by a cabal of subcontractors “aligned” with the construction union, the CFMEU.

A separate cache of leaked complaints from subcontractors alleged that firms had been forced to carry out work on the private residences of project supervisors to win contracts.

Asked whether her government had misled voters by pleading ignorance when the Big Build exposé was first detailed by this masthead last year, Allan said she had been “clear repeatedly” that when matters were brought to her attention, they were referred to the relevant agencies and authorities.

But Allan repeatedly refused to reveal what she knew about the damaging allegations of widespread rorting, or when she was first made aware of them, when questioned at a press conference on Thursday.

“When allegations were raised with me, they were referred to the relevant agencies for their investigation and response, as you would expect for those agencies who have the powers to deal with these matters,” she said.

“If they see any suspicion of behaviour that’s inappropriate on worksites, they should report it. So not only are we requiring that through our contracts and policies, we are also strengthening the mechanism so people can feel that they can come forward and provide this information.”

Opposition spokesman for major projects Evan Mulholland said Allan needed to explain what she had known about the allegations and why she didn’t act.

“What the government has done since these stories came out has not worked,” he said. “We still have gangland figures involved on major projects to this very day, extorting taxpayers’ money.

“Labor needs to explain what they knew and why they are not acting with a royal commission.

“I agree with the former IBAC commissioner Redlich: much more needs to be done in terms of an independent inquiry to get to the bottom of this.”

More than a year since the Building Bad revelations were published by this masthead, and despite not a single substantive criminal charge being laid, Allan still maintains that her response has been sufficient, and a broader inquiry or royal commission is not needed.

She has cited the government’s pledge to strengthen labour-hire rules and her support of the federal government’s move to put the CFMEU in administration.

Questions about the corruption allegations on Big Build sites dominated upper house question time on Thursday. Industrial Relations Minister Jaclyn Symes refused to reveal if she had been briefed on the cost of corruption on Big Build projects.

“I reiterate that there is zero tolerance for inappropriate behaviour on worksites in the state of Victoria, whether that be corrupt conduct or criminal conduct,” she said.

Symes rejected suggestions the revelations of rampant corruption exposed by this masthead warranted a wider inquiry or royal commission, as suggested by Redlich.

She said the issues on Big Build sites required a more urgent response, which was why the government had undertaken an independent review into the government’s engagement with construction unions and companies – and to immediately implement the recommendations.

“It is not a position that I hold that a royal commission is the best way forward here,” Symes said. “I would prefer to act now rather than wait.”

During question time, Labor also moved to defend payments it had made to the CFMEU through the Skills First Program, which funds organisations to deliver vocational training.

This masthead previously revealed the state government paid the union almost $2.5 million in 2022-23 to 2023-24.

Answers to questions on notice reveal the state government made further payments worth $1.33 million last financial year.

Skills Minister Gayle Tierney accused the opposition, which suggested the government was paying taxpayer money to a union with clear links to criminals, of misrepresenting the situation.

“The contractual relationship between the department and the CFMEU-registered training organisation [RTO] has been in place since at least 2010, including when those opposite were in government – except when they were in government they were paid upfront, not in arrears,” she said in parliament.

“If those opposite or anyone in the community have any allegations in relation to the CFMEU RTO, I urge them to report those to the appropriate authority.”

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