Controversy is escalating in the Australian state of Victoria, where allegations of corruption and massive cost overruns on a £52 billion infrastructure programme have put Premier Jacinta Allan's government under intense scrutiny. The high-stakes saga, dubbed 'Building Bad', has raised questions about the extent to which organised crime figures are infiltrating the state's lucrative construction industry.
The explosive claims, investigated by Australian media outlets Nine and 60 Minutes, centre on allegations that money from the state's vast infrastructure projects is being diverted to underworld figures. The investigation revealed that contractors on key projects had repeatedly warned the Victorian government about soaring labour costs driven by demands from the Construction, Forestry and Maritime Employees Union (CFMEU) between 2022 and 2024.
A leaked consortium report, cited in the investigation, reportedly highlighted a staggering 22% increase in labour costs for the Metro Tunnel project above industry norms. It estimated that £104 million of these costs were directly attributable to union-backed staffing, with contractors allegedly forced to employ additional non-productive workers at the behest of the CFMEU and with government backing.
Premier Allan, who oversaw the Big Build programme as a minister between 2018 and 2023 before becoming Premier, maintained that higher wages for union members were justified by improved working conditions. She classified these costs as part of the overall inflationary pressures on projects.
The investigation also suggested that corruption persists in Victoria's construction industry, with funds from Big Build projects still reaching gangland figures despite government efforts to eradicate it over nearly two years. When questioned about ongoing allegations, Ms Allan acknowledged the claims and urged anyone with evidence to report it to Victoria police, stating there was "no evidence of government corruption on the Big Build".
However, opposition leader Jess Wilson countered that the reporting indicated "the corruption continues to happen today" under Premier Jacinta Allan's watch. The calls for a royal commission have also been echoed by Victoria’s former ombudsman, Deborah Glass, and former Independent Broad-based Anti-Corruption Commission commissioner Robert Redlich, who issued a joint statement advocating for such an inquiry.
For the UK, this scandal raises concerns about the security implications of corruption in major infrastructure projects. As Britain's own infrastructure programme continues to expand, questions are being asked about the measures in place to prevent similar scandals emerging in the UK construction industry.