Key facts
- Integrity expert Geoffrey Watson SC stated no one from the Victorian Labor government has contacted him regarding his report on CFMEU corruption.
- Watson's report estimated the corruption cost taxpayers at least $15 billion.
- Victorian government officials had previously called the report 'unfounded' and 'florid ramblings'.
- The new premier, Ben Carroll, has committed to a royal commission into the construction industry.
- CFMEU administrator Michael Crosby believes criminality still exists in the sector and that corruption has increased infrastructure costs.
Integrity expert Geoffrey Watson SC has stated that no one from the Victorian Labor government has contacted him regarding his report alleging significant corruption within the Construction, Forestry, Maritime Employees Union (CFMEU), which he estimates cost taxpayers at least $15 billion.
Watson's report, titled 'Rotting from the Top,' was commissioned by a former CFMEU administrator and presented to a Queensland inquiry. Despite public criticism of the report from Victorian government officials, including former Premier Jacinta Allan and current Attorney-General Sonya Kilkenny, Watson claims no one has sought clarification on his findings.
During his testimony, Watson recounted instances where government ministers publicly dismissed his work, with the Police Minister even suggesting he report issues to the police, a suggestion Watson countered by stating he had been doing so weekly. The controversy surrounding the report and the government's response has been a significant factor in recent political developments, including Allan's resignation as premier.
Her successor, Ben Carroll, has pledged to establish a royal commission into the construction industry. Watson's report also alleged that Melbourne underworld figure Mick Gatto controls M Group companies, which he claimed received preferential treatment on Victorian government Big Build projects. While Watson slightly amended his assertion about direct ownership, he stood by his central claim of Gatto's control.
Michael Crosby, the newly appointed administrator of the CFMEU, echoed concerns about corruption in the sector, agreeing that it has inflated infrastructure costs and that "criminality" persists due to individuals influencing contract awards. Crosby expressed skepticism about royal commissions but welcomed Carroll's broader examination of the construction industry. He also revealed he has an intervention order against former CFMEU boss John Setka, citing alleged threats.