In a dramatic revelation, a corruption report has surfaced implicating Victoria’s Labor government in turning a blind eye to CFMEU graft and organized crime on major infrastructure projects, costing taxpayers a staggering $15 billion. The findings, initially stripped from the report by an Albanese government-appointed official, were released by CFMEU administrator Mark Irving, KC, after inquiries from the media.
On Tuesday evening, Irving disclosed the omitted sections of the report, which had been authored by anti-corruption expert Geoffrey Watson, SC. Watson confirmed that parts of his 18-month investigation into CFMEU corruption had been removed, stating,
“I did not suggest the changes. I was directed to make the changes.”
However, Irving justified the removal, arguing the sections were not well-founded or properly tested.
Political Fallout and Inquiry Developments
The controversy erupted as Queensland’s Commission of Inquiry sought to uncover the missing chapters, having received a different version of the report in January. The commission, which planned to publish the report this week, is now poised to release the full findings.
The report alleges that the Victorian government was aware of corrupt CFMEU officials collaborating with organized crime on the state’s expansive rail and road projects but chose inaction. Watson’s report states,
“As the guardian of public money, the government had a duty to know… It is equally clear that the government did nothing about it.”
Financial Implications and Government Response
The financial repercussions are severe, with Watson estimating that CFMEU’s actions inflated project costs by 15 to 30 percent, resulting in a $15 billion burden on taxpayers. This money, Watson claims, was funneled into the hands of criminals and organized crime gangs.
Despite Premier Jacinta Allan’s denials of prior knowledge, Watson’s findings suggest a longstanding issue, exacerbated by the government’s reluctance to confront the CFMEU due to its industrial power. The report criticizes the government’s strategy of deferring the problem to private contractors, which only worsened the situation.
Historical Context and Broader Implications
The CFMEU, a powerful union in Australia’s construction sector, has a history of controversy. This latest scandal adds to a series of allegations first highlighted by investigative journalism and the Building Bad series. The union’s influence and alleged misconduct have long been a political flashpoint, with previous calls for royal commissions.
Irving, appointed by the Albanese government to address these issues, has made strides in reforming the CFMEU, including dismissing corrupt officials and confronting organized crime. However, his administration faces criticism for its perceived closeness to the federal Labor government and for initially sanitizing the report.
Future Steps and Political Repercussions
The Queensland Commission of Inquiry, led by conservative barrister Stuart Wood, KC, is expected to scrutinize Watson’s findings and the circumstances surrounding the report’s alteration. The inquiry’s outcomes could have significant political ramifications, potentially leading to calls for further investigations or reforms.
As the situation unfolds, the federal opposition has demanded transparency and accountability. Industrial relations spokesman Tim Wilson has urged for the immediate release of the full report, emphasizing the public’s right to know the extent of misconduct and corruption.
This unfolding scandal not only challenges the integrity of Victoria’s infrastructure projects but also raises questions about political accountability and the influence of powerful unions. The coming weeks will likely bring further revelations and political fallout as the inquiry progresses.
