Premier Jacinta Allan was aware 16 months ago that Victoria’s corruption watchdog, the Independent Broad-based Anti-corruption Commission (IBAC), would not investigate her referral concerning organized crime and graft on taxpayer-funded projects. Despite this, she continued to promote the referral as evidence of her commitment to tackling corruption.
The revelation comes amid allegations from a Big Build contractor and Labor donor that expensive items such as utes and jet-skis were gifted to project managers on the state’s $34.5 billion Suburban Rail Loop. The project authority has denied these claims.
As the premier deflected questions regarding donations from companies involved in the CFMEU scandal to her party, Labor faces a significant parliamentary challenge. The Coalition, Greens, and crossbenchers are pushing to expand IBAC’s powers to trace financial transactions.
Background and Political Implications
In July 2024, Allan released a letter she had sent to IBAC following revelations by The Age, The Australian Financial Review, and 60 Minutes about organized crime infiltration in Big Build projects. IBAC responded, confirming it could not investigate the referral due to jurisdictional limitations. The premier’s office later disclosed that she was informed of this limitation in late 2024.
This timeline poses a challenge for Allan, who recently cited her referral when questioned about a scathing report by integrity expert Geoffrey Watson, SC. The report accused the government of ignoring the CFMEU’s misconduct, including sexual exploitation and drug distribution on taxpayer-funded projects. Watson estimated the CFMEU’s actions and government inaction had inflated the Big Build’s cost by $15 billion, a claim Allan disputes.
Calls for Expanded Anti-Corruption Powers
At a press conference, Allan defended her 2024 actions, stating she had referred matters to Victoria Police and the Fair Work Commission. She emphasized the seriousness of the CFMEU allegations and the necessity of police involvement in criminal matters.
Former IBAC commissioner Robert Redlich criticized the premier and her department for not recognizing IBAC’s limitations and supported calls for a royal commission. These developments have intensified efforts to grant IBAC the financial tracking powers it seeks, which would enable it to follow taxpayer funds through Big Build supply chains.
“IBAC must have the powers to chase down this money. We want IBAC to chase every single cent that has been ripped off from Victorian taxpayers,” said shadow attorney-general James Newbury.
The opposition has announced plans to grant IBAC these powers, either through its own bill or by supporting a government bill. The issue could reach a critical point this week as the Greens propose an amendment to a parliamentary bill to extend IBAC’s powers.
Controversy and Allegations
Two anonymous sources indicated that the amendment is expected to pass the upper house with support from the Coalition and crossbenchers. The bill would then return to the lower house, where Labor could use its majority to remove the amendment, risking criticism for opposing powers requested by IBAC itself.
Greens leader Ellen Sandell highlighted a significant gap in the system, stating,
“This level of corruption on Labor’s major construction projects in Victoria is astounding. To stop this happening, we need to fix Victoria’s anti-corruption watchdog and that means giving IBAC the power to follow public money wherever it’s being spent.”
On Tuesday, a Big Build contractor scrutinized for its connections to gangland figure Mick Gatto and a donation to Victoria’s Labor Party criticized the focus on his company. Anthony Ciccone, a veteran construction industry figure, questioned why other political donors involved in the Suburban Rail Loop had not been identified. He alleged that a subcontractor offered gifts to project managers, leading to its removal from the project.
Future Steps and Financial Commitments
The Victorian government has committed about one-third of the $34.5 billion anticipated cost for the first stage of the Suburban Rail Loop. It has secured $2.2 billion from the federal government, with further contributions expected in the upcoming budget. The state plans to fund the remaining portion through parking levies, existing land taxes, and developer charges.
Ciccone, who owns Cycon Civil and co-owns Project Labour Solutions, expressed frustration over the focus on his company, asking, “Where are all the other companies that donated?”
The unfolding situation places significant pressure on the Victorian government to address corruption concerns and enhance the powers of its anti-corruption watchdog. As parliamentary debates continue, the outcome could reshape the state’s approach to handling public funds and maintaining integrity in major infrastructure projects.
