A corruption probe into the Victorian government has uncovered evidence of "serious and concerning" conduct by senior officials during enterprise bargaining agreement negotiations with the firefighters' union, according to a report tabled in state parliament.

The Independent Broad-based Anti-corruption Commission (IBAC) examined allegations related to negotiations between the former Daniel Andrews Labor government and the United Firefighters Union (UFU) in 2016.

IBAC launched its investigation in November 2018 following complaints that the union's secretary, Peter Marshall, had blackmailed or compromised then-Premier Daniel Andrews to influence the agreement. The watchdog found no evidence to support these specific claims or any corrupt conduct under Victorian law.

However, the report stated that senior officials and public servants acted contrary to government policies, procedures, and conventions, thereby increasing the risk of corrupt conduct. "While IBAC did not find that any individuals engaged in corrupt conduct as defined in the IBAC Act, IBAC did find serious and concerning conduct by senior public officers," the report said.

One instance detailed in the report involved four days of undisclosed negotiations in 2016 between former Special Minister of State Gavin Jennings and Mr. Marshall. These meetings, authorized by then-Premier Andrews, took place in rented spaces and a hotel without the knowledge of the then-responsible minister, Jane Garrett, the Country Fire Authority (CFA), or relevant government agencies.

According to IBAC, participants in these meetings were instructed to maintain confidentiality. The negotiations concluded with a handshake agreement, which the government later presented to cabinet as a "UFU proposal" without disclosing the prior private discussions to fire agencies or government members.

The watchdog claimed this secret agreement weakened the government's bargaining position. IBAC found that Mr. Marshall expected the deal to be honored and resisted significant changes, threatening industrial action or public disclosure of the undisclosed negotiations.

"The government placed itself in a position where Mr. Marshall was able to exert extraordinary influence over the negotiations," the report stated. "The actions of the premier, minister Jennings and (then Department of Premier and Cabinet deputy secretary Tony Bates) over this period were contrary to government policy, procedures, convention and their respective codes of conduct."

The probe also investigated the merger of the CFA and Metropolitan Fire Brigade, which led to the formation of Fire Rescue Victoria in 2020. While IBAC did not substantiate allegations of corrupt conduct in this matter, it found that Mr. Marshall sought to influence the appointment of the state's first Fire Rescue Commissioner. Additionally, MFB board member Greg Sword was found to have shared confidential information with Mr. Marshall in 2019, a breach of his professional obligations.

IBAC issued three recommendations aimed at enhancing integrity standards for ministers, introducing a ministerial handbook, and improving training on ministerial obligations.

Commissioner Victoria Elliott commented that the report illustrates how leaders can undermine accountability by failing to act with integrity. "The matters investigated in Operation Richmond may have occurred some time ago, but the corruption risks and vulnerabilities highlighted ... are serious and persist in Victoria's public sector," she said.

Premier Ben Carroll, who has been a member of the Labor government's cabinet since 2017, stated that he had not yet reviewed the report but committed to implementing its recommendations. "These recommendations go to integrity, I did say integrity is not negotiable," Carroll told reporters. "I can't answer for the former premier or former ministers. What I can answer for is what we do from here."

Premier Ben Carroll (pictured) said he could not answer for previous governments, despite having served as a minister