Victoria's Premier Jacinta Allan has been referred to the state's corruption watchdog, the Independent Broad-based Anti-corruption Commission (IBAC), amid allegations of personal intervention in awarding state infrastructure contracts. The complaint, filed by shadow Attorney-General James Newbury, centers on decisions made in 2022 when Allan served as the minister for transport infrastructure.
Newbury stated that IBAC has the authority to examine the premier's and her office's actions concerning the awarding of contracts for one of the state's Big Build projects to a consortium backed by the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU). He specifically raised concerns about potential influence exerted to favor a "Labor company" that subsequently saw cost blowouts and faced charges for serious financial crimes.
These allegations add to ongoing concerns about corruption within Victoria's construction industry. Calls for a royal commission into alleged criminal networks embedded in major infrastructure projects have intensified. Investigations suggest potential infiltration by organized crime figures and bikie gangs through the CFMEU, with accusations including extortion, violence, and billions of dollars in inflated project costs attributed to bribery and alleged diversion of funds to illicit payments and nepotism.
The Australian Federal Police are reportedly conducting their own investigations into corruption, money laundering, and organized crime within Victoria's construction sector.
Premier Allan has consistently rejected calls for a royal commission, arguing that such an inquiry would delay necessary changes. She has, however, expressed commitment to granting the corruption watchdog enhanced investigative powers, though legislative changes are not expected until a review process concludes by the end of 2027.
Geoffrey Watson SC, a barrister who led a 2024 investigation into the CFMEU, estimated that as much as $15 billion may have been lost to misconduct on taxpayer-funded construction sites in Victoria. The premier's office has previously disputed this figure, and members of her government have questioned Watson's investigative methods.