Victorian Premier Rejects Calls for Royal Commission into Big Build Corruption Allegations

Victorian Premier Jacinta Allan has rejected growing calls for a royal commission into alleged corruption in the state's $100bn Big Build infrastructure program, insisting that "inflationary pressures on projects is not corruption."

The remarks come after an investigation by Nine newspapers and 60 Minutes reported allegations that money from the Big Build projects had flowed to underworld figures and that the state government had been warned about cost overruns due to demands from the Construction, Forestry and Maritime Employees Union (CFMEU).

A leaked consortium report, referenced in the Nine investigation, warned the government that CFMEU demands had inflated labour costs on the Metro Tunnel by 22% above industry norms. The report estimated $196.4m of labour costs were driven by union-backed staffing, with contractors forced to hire additional non-productive workers. It stated the consortium acquiesced to the CFMEU's demands with the Labor government's backing.

Allan, who oversaw the Big Build program as minister from 2018 to 2023 before becoming premier, said at a press conference on Monday that she had not read the consortium's report. She defended union wages as part of inflationary pressures, saying they provided "better" and "safer" conditions. "Fair wages" for union workers were not corruption, she argued.

When asked if corruption was still ongoing in the Big Build, Allan said she accepted allegations had been made, but those who claim to have evidence should refer it to Victoria Police. "There is no evidence of government corruption on the Big Build," she asserted. She expressed confidence that Victoria Police and the Labour Hire Authority had sufficient powers, noting that the authority had cancelled 164 construction industry licenses and police had laid 93 charges over the past two years.

Opposition leader Jess Wilson countered that the Nine reporting showed "the corruption continues to happen today," with payments still flowing to underworld figures under Allan's watch. Allan continued to resist calls for a royal commission, describing it as "a call for delayed action" that would not lead to cultural change on work sites.

Former Victorian ombudsman Deborah Glass and former IBAC commissioner Robert Redlich issued a joint statement saying a royal commission was urgently needed. Federal deputy opposition leader Jane Hume called for a royal commission and a funding pause on the state's infrastructure projects, but Allan dismissed the idea, warning it would immediately put tens of thousands of workers out of work.

A report by barrister Geoffrey Watson SC, tendered during Queensland's inquiry in February, estimated Big Build corruption involving the union had cost Victorian taxpayers up to $15bn. The Allan government previously rejected that figure as unfounded. In a recent interview, Allan refused to provide her own estimate of how much CFMEU corruption had cost the state.

The Big Build program began in 2015 after the election of the Daniel Andrews-led Labor government, encompassing major road and rail projects including the recently opened Metro Tunnel and the controversial Suburban Rail Loop.