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Jacinta Allan admits criminals infiltrated Big Build but rejects calls for royal commission

Created at 3 Jul · 5:40 AM1 source↑ Market-relevant
IN SHORT

Victorian Premier Jacinta Allan acknowledged that criminals infiltrated major construction projects but rejected calls for a royal commission, stating it would not change culture and citing past costly inquiries with limited success. She emphasized police investigations and stronger regulatory powers as the solution.

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Key Numbers

$46 millioncost of previous royal commission into trade unions
onecriminal conviction from previous union royal commission
90criminal charges laid by Victoria Police
164construction firms had licenses cancelled by Labour Hire Authority
$15bnVictorians' money allegedly rorted on the Big Build

Who's Involved

Jacinta Allan
Victorian Premier who admitted criminal infiltration on Big Build projects
Geoffrey Watson SC
Appointed by CFMEU administrator to investigate corruption allegations
Deborah Glass
Former Victorian ombudsman who called for a royal commission
Jess Wilson
State opposition leader calling for a royal commission
CFMEU
Union placed into administration and removed from Victorian Labor Party
Victoria Police
Investigating criminal conduct with strengthened powers
Labour Hire Authority
Has powers to cancel construction licenses

↳ Why This Matters

The admission of criminal infiltration into major public infrastructure projects raises serious questions about governance, oversight, and the use of taxpayer funds. The Premier's rejection of a royal commission, despite allegations of corruption and organized crime involvement, highlights a significant political divide and ongoing debate about accountability and reform in the construction sector.

Key facts

  • Premier Jacinta Allan confirmed criminals operated on some of Victoria's Big Build construction sites.
  • Allan rejected calls for a royal commission into alleged corruption, citing past inquiries' ineffectiveness.
  • Allegations suggest money from the Big Build was paid to gangland figures.
  • Reports indicate potential ministerial pressure on a rail consortium to deal with the CFMEU.
  • Allan highlighted strengthened police powers and regulatory actions as the correct approach.
  • The opposition leader advocated for a royal commission to address alleged misuse of public funds.

Victorian Premier Jacinta Allan has acknowledged that criminal elements infiltrated some of the state's major construction projects, referred to as the Big Build. In an opinion piece, Allan stated that violence, intimidation, and organized criminal behavior occurred, which she deemed shocking and unacceptable, while also expressing regret that it happened on taxpayer-funded projects. However, she has rejected growing calls for a royal commission into alleged corruption involving unions and labour hire companies.

Allan argued that a royal commission would not effectively change behavior or culture on worksites, referencing a previous inquiry into trade unions that was costly and resulted in only one criminal conviction. Instead, she pointed to strengthened powers given to Victoria Police, which have led to over 90 criminal charges, and the Labour Hire Authority's cancellation of 164 construction licenses as more effective measures. She also noted the administration of the CFMEU and its expulsion from the Victorian Labor Party.

Despite Allan's stance, allegations persist that money from the Big Build was channeled to gangland figures and that the government was warned of cost overruns due to CFMEU demands. Reports also suggested potential pressure from Allan's office during her tenure as transport infrastructure minister, influencing a rail consortium to engage with the CFMEU on a level crossing removal project, reportedly leading to the union imposing its preferred labour hire company. The state opposition leader, Jess Wilson, countered Allan's position in a separate opinion piece, asserting that a royal commission is necessary to expose how $15 billion of public money was allegedly misused and to prevent recurrence.

Frequently asked questions

The Big Build refers to a series of large-scale infrastructure projects undertaken by the Labor government in Victoria, Australia.

Calls for a royal commission stem from allegations of corruption, organized criminal behavior, and misuse of funds involving unions and labour hire companies on Big Build projects.

Premier Jacinta Allan has rejected calls for a royal commission, arguing it is not the most effective way to change behavior and citing the cost and limited outcomes of past inquiries.

The government has strengthened police powers for investigations, enhanced the Labour Hire Authority's ability to cancel licenses, placed the CFMEU into administration, and mandated reporting of criminal behavior by construction companies.

What Happens Next

01Victoria Police continue to investigate criminal conduct on construction sites.
02The Labour Hire Authority will continue to monitor and cancel licenses of non-compliant firms.
03Further scrutiny is expected regarding the government's handling of allegations and its reform measures.

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Cadence

How It Developed

Jacinta Allan admitted criminals infiltrated some of Victoria's Big Build construction projects.
Allan rejected calls for a royal commission into alleged corruption involving unions and labour hire companies.
She stated a royal commission would not solve the issue, citing a previous union inquiry's cost and limited impact.
Allegations surfaced that money from the Big Build was paid to gangland figures and that the government was warned of cost blowouts due to union demands.
Reports indicated Allan's office may have pressured a rail consortium to deal with the CFMEU on a level crossing removal project.
Allan stated police investigations and stronger regulatory powers are the appropriate response.
The state opposition leader called for a royal commission to expose alleged corruption and prevent future occurrences.

Sources

T1
Jacinta Allan admits criminals infiltrated Big Build but rejects calls for royal commissionThe Guardian

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