Construction Underworld Faces $50M Probe

Victoria’s construction industry will face a $50 million Royal Commission into alleged corruption, organised crime and misconduct, with the inquiry also empowered to scrutinise the role of government.

Premier Ben Carroll announced the terms of reference on 20 August, after calling the Royal Commission on his first day as Premier following sustained pressure over allegations surrounding Victoria’s construction sector.

The issue had become one of the biggest political liabilities for Labor and a persistent problem for Carroll’s predecessor Jacinta Allan.

Former South Australian Chief Justice Chris Kourakis AC has been appointed Royal Commissioner and will investigate the conduct of the CFMEU, construction companies, labour hire firms, consortia and criminal actors on Victorian major projects.

Earlier this year, allegations that more than $15 billion may have been rorted from Big Build sites caused public outrage. 

(Premier Ben Carroll and Former Police Minister Anthony Carbines) 

Kourakis Can Call On Who He Wants

The inquiry will also examine the role of the executive government, government departments and project delivery agencies in overseeing those projects.

Kourakis will determine which current and former ministers, senior officials, union leaders and company executives are relevant to the investigation and should be called to give evidence.

“If he wants to hear from Ministers, former Ministers, senior officials, union leaders or company executives, he has the power to call them,” Carroll said.

The Commission will receive a budget of up to $50 million and has been asked to report within 12 months.

The government will also establish an Office of the Special Prosecutor, designed to pursue potential criminal wrongdoing uncovered through the inquiry.

(Opposition Leader Jess Wilson)

Opposition Have Long Pushed For Royal Commission 

“That is why we are establishing an Office of the Special Prosecutor: a dedicated, embedded resource working alongside the Commission, so that when wrongdoing is uncovered, it is investigated and it is pursued, and people face consequences,” Carroll said.

Legislation establishing the office is expected in September, while IBAC is also set to receive expanded powers, including additional “follow the money” powers and a broader definition of corrupt conduct.

The announcement follows months of political pressure over the construction industry.

Several weeks ago, Opposition Leader Jess Wilson released the Coalition’s own proposed terms of reference and a list of 25 people she argued should be called to give evidence.

The list included former premiers Daniel Andrews and Jacinta Allan, Carroll and former Werribee MP and Treasurer Tim Pallas.

(Former Treasurer and Werribee MP Tim Pallas was on Jess Wilson’s non-negotiable witness list).

Wilson Wants Long List Of Witnesses Questioned 

Wilson’s full list named Daniel Andrews, Mick Gatto, John Setka, Jacinta Allan, Joe Myles, Ben Carroll, James Merlino, Tim Pallas, Elias Spernovasilis, Natalie Hutchins, Jaclyn Symes, Danny Pearson, Derek Christopher, Gabrielle Williams, Nick Staikos, Lissie Ratcliff, Jessie McCrone, Harriet Shing, Melissa Horne, Anthony Carbines, Jeremi Moule, Jeroen Weimar, Kevin Devlin, Duncan Elliott and Chris Barrett.

Under the government’s terms of reference, it will ultimately be Kourakis rather than politicians who decides who is relevant to the inquiry.

“Critically, the terms of reference make it a matter for the Commissioner to decide whose actions and whose knowledge are relevant to the matters under investigation,” Carroll said.

“Not the government. Not me. The Commissioner.”