How the ‘Big Build’ corruption allegations brought down the Victorian premier
- Written by: Weekend Times
Victorian Premier Jacinta Allan has resigned this morning, just before a caucus vote challenging her leadership.
A major factor for her resignation is revelations from the Big Build corruption.
Most recently, Nine media reporting revealed Allan was briefed on the Big Build corruption by senior public servants in June 2023, when she was transport minister.
The briefing showed Allan was notified about criminal and bikie infiltration of the government’s $109 billion infrastructure program. The brief stated this had “a bearing on project costs, program, productivity and culture”.
This undercut Allan’s arguments there was no cost blowout from CFMEU (the Construction, Forestry and Maritime Employees Union) involvement, saying instead it had simply been as a result of inflation.
Allan claimed she had never seen this brief.
The alleged corruption has reportedly cost Victorian taxpayers around $15 billion.
Other allegations have surfaced about the premier approving an $837 million payment based on CFMEU demands.
Read more: Without a Royal Commission, we won’t know the scale of the corruption in Victoria’s Big Build
Media reporting also alleges that in 2022, Allan as transport minister 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.
What happened in the Big Build?
An independent investigation has shown organised crime and outlaw motorcycle gangs penetrated major government building projects through the CFMEU, driving up costs through extortion, fixed procurement deals and “ghost shifts” – labour hire companies charging for shifts that were never worked.
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 has been done so far?
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.
However, even if laws have passed, this depends on IBAC deciding to investigate. It is also unclear if there will be public hearings, given the agency’s high threshold for public hearings.
Allan 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.
On Monday, Allan announced the creation of a new crime agency to break up organised crime.
However, despite the mounting pressure, Allan has consistently rejected a royal commission. This inaction has taken her scalp.
Why do we need a royal commission into the Big Build?
A number of ministers now back a royal commission into the Big Build, including the Deputy Premier Ben Carroll, who is expected to take over the leadership.
This means that if Labor wins the November election, it is committed to calling a royal commission into the Big Build. Opposition leader Jess Wilson has also committed to a royal commission if she becomes premier.
As royal commissions are expensive, it is necessary to ask why we need one.
We don’t know at this stage how much the Victorian government knew about – or was complicit in – the corruption.
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.
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. The police force’s remit is 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 government’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 was an ANZSOG Academic Fellow working on a project on anti-corruption corruptions and has previously received funding from the NSW Independent Commission Against Corruption.
