Victoria's Premier, Jacinta Allan, has made a candid admission about corruption within the state's 'Big Build' infrastructure projects, revealing that organised crime infiltrated several construction sites. In an opinion piece published in The Age newspaper, Ms Allan acknowledged "violence, intimidation and organised criminal behaviour" on some of Victoria’s largest building projects, funded by the Victorian people.
Her admission comes as demands grow for a royal commission to investigate alleged corruption involving trade unions and labour hire companies. Figures such as Geoffrey Watson SC, who investigated CFMEU corruption allegations, and former Victorian ombudsman Deborah Glass have called for an inquiry into these claims. However, Ms Allan has firmly rejected this proposal, citing the previous £24 million (A$46 million) royal commission into trade unions, which resulted in only one conviction and failed to bring about significant cultural change.
Instead of a royal commission, Ms Allan advocates for systemic changes within the construction industry. Her government has implemented measures such as granting Victoria Police enhanced powers, leading to over 90 criminal charges, and giving the Labour Hire Authority stronger powers to cancel construction licences, resulting in 164 firms losing their permits. The CFMEU was also placed into administration, and Ms Allan confirmed its expulsion from the Victorian Labor Party.
These developments follow allegations that money from the 'Big Build' was being diverted to gangland figures and that officials within the government were forewarned about significant cost overruns stemming from CFMEU demands. Reports this week have also surfaced concerning Ms Allan's tenure as transport infrastructure minister, suggesting that state officials were instructed to facilitate deals with the CFMEU on level crossing removal projects. Further allegations point to ministerial pressure from her office during a 2022 dispute involving the CFMEU and a rail infrastructure partnership.
Ms Allan has emphasised the role of police in investigating wrongdoing within the construction industry, noting that companies working on government projects are now required to report suspected criminal behaviour. Worker whistleblower protections have been strengthened, and state agencies are sharing intelligence with the federal government to prevent oversight. However, opposition leader Jess Wilson has reiterated the necessity of a royal commission to uncover the full extent of corruption and how £7 billion was spent on these infrastructure projects.