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The Victorian Big Build royal commission has begun investigating corruption and criminality in the $150 billion infrastructure program, with former premier Jacinta Allan and the CFMEU among those scrutinized.
The Victorian Big Build royal commission into corruption and criminality in the state's construction sector held its first public hearing on Monday, with Royal Commission er Christopher Kourakis SC warning industry participants to make early voluntary disclosures or risk being exposed. The inquiry is examining allegations of misconduct on public infrastructure projects worth more than $150 billion.
Scope of the Victorian Big Build Inquiry
Led by former Chief Justice of South Australia Christopher Kourakis, the commission is investigating allegations of corruption, misconduct, and criminality across the state's massive public infrastructure program.
Counsel assisting Chris Young SC said the allegations reach from worksites to union offices, boardrooms, government departments, and ministerial offices. Former Supreme Court judge Kevin Bell KC noted that no one is excluded, including builders, subcontractors, union officials, workers, government officials, and politicians.
Kourakis stated that the commission's task is to bring those responsible for delivering Big Build projects to account publicly for how they discharged their responsibilities. He warned that anyone wishing to remain in the industry would be better served by early voluntary disclosures than by waiting to be found out.
Government Briefings and Jacinta Allan
The commission is examining what the government knew and when. A briefing prepared for then infrastructure minister Jacinta Allan described the industrial relations environment on major projects as highly challenging and referred to reports of outlaw motorcycle club members and convicted criminals being present on worksites.
A second briefing, signed by Allan the following day, went further, reporting allegations of criminal elements potentially becoming involved in MTIA projects. Allan also wrote to then Police Commissioner Shane Patton, saying she had been made anecdotally aware of a small number of possible criminal incidents on government infrastructure projects.
Allan now faces the prospect of giving evidence. Kevin Bell KC said she will have to answer questions like everybody else, with no premier exception. If asked about the nature of government oversight in the industry, she will have to answer, he added.
CFMEU and Criminal Allegations
At the centre of many allegations is the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU). Its Victorian branch was controlled by John Setka for years. Setka resigned as state secretary in 2024 after media reports exposed criminal infiltration of the union. Its construction division was subsequently placed under administration by the federal government.
Christopher Carr SC, counsel assisting, said it has been alleged that some people paid hundreds of thousands of dollars to organised crime figures, said to include Mick Gatto, to obtain an enterprise bargaining agreement (EBA).
Mick Gatto, a Melbourne underworld veteran who runs a mediation business in the construction sector, was arrested and had his property raided by the Victoria Police construction sector taskforce in June. Gatto dismissed the allegations as a load of crap and said it would all come out in due time.
Industry Leaders and Ongoing Investigations
The state's largest construction companies, known as Tier One builders, have also been singled out. Chris Young asked what steps industry leaders took to manage industrial relations risks, corruption, criminal conduct, and serious misconduct on projects, what they knew about alleged conduct and when, and what they did about it.
The commission's investigative work is underway. Secret closed hearings have been held, and a senior Victoria Police officer has been appointed lead investigator.
John Agius SC, senior counsel, said the royal commission is also dealing with complaints about standover people, bikies, and people who pride themselves on being able to extract money from subcontractors. It is also examining people who lie about their capacity to produce an EBA for a subcontractor, and some who had associations with CFMEU members or officers where true corruption was involved.
Victorian Big Build Royal Commission Jacinta Allan CFMEU Mick Gatto Christopher Kourakis Victoria Police
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