The short version
- The Victorian government has established a royal commission to investigate corruption and criminal conduct in the construction industry, granting the commissioner extensive coercive powers.
- Former South Australian Chief Justice Chris Kourakis leads the inquiry, which includes examining the role of the CFMEU union as well as government oversight failures.
- Premier Ben Carroll confirmed that current and former political leaders may be called to testify, with public funding provided for their legal representation.
The state of Victoria has initiated a comprehensive royal commission into its construction sector, marking a significant escalation in efforts to address long-standing allegations of corruption and misconduct on taxpayer-funded projects. Premier Ben Carroll formally released the terms of reference for the inquiry after Governor signed the letters patent establishing the commission. The move follows months of intense scrutiny regarding the integrity of major public infrastructure works, particularly those associated with the state’s Big Build program.
Carroll described the environment on these construction sites as plagued by grift, thuggery, misogyny, and violence. He emphasized that the government maintains zero tolerance for such behavior and that the inquiry is designed to provide Victorians with clear answers about how public funds were managed. The premier acknowledged the critical role played by investigative journalism and whistleblowers in bringing these issues to light, noting that their work revealed systemic problems that could no longer be ignored.
Former Chief Justice of South Australia Chris Kourakis has been appointed as the commissioner for the inquiry. Carroll characterized Kourakis as independent, rigorous, and fearless, qualities deemed essential for navigating the complex political and industrial landscape surrounding the construction industry. The commission has been allocated a budget of $50 million and is mandated to report its findings to the government by August 20, 2027. This timeline allows for a thorough examination of events spanning several years.
The scope of the investigation is exceptionally broad. The terms of reference authorize the commissioner to examine the extent to which corruption, criminal conduct, or serious misconduct occurred on major Victorian projects. This includes scrutinizing the actions of the Construction, Forestry and Maritime Employees Union (CFMEU), construction companies, subcontractors, labor hire firms, and other entities involved in the sector. The inquiry will also assess whether government departments and project delivery agencies adequately fulfilled their responsibilities in overseeing these developments.
A key feature of this royal commission is its coercive power. Kourakis can compel the production of information, including sensitive cabinet documents, and require the attendance of witnesses. Carroll stated that nothing is off limits, ensuring full transparency throughout the process. While lawful actions taken under industrial relations and occupational health and safety laws are outside the inquiry’s scope, the commission can investigate whether such laws were misused to facilitate unethical behavior or cover up misconduct.
The potential for high-profile testimony has been confirmed by the premier. Carroll indicated that both current and former premiers, as well as ministers and senior officials, could be called to face public hearings. He clarified that it is ultimately the commissioner’s decision who will be summoned based on relevance to the matters under investigation. To ensure fairness, Carroll noted that legal representation for former ministers and other witnesses will be publicly funded, describing this as standard procedure for such inquiries.
Michael Crosby, the administrator of the CFMEU, stated that the union would fully cooperate with the royal commission. However, he urged investigators to look beyond the union and examine the conduct of developers, head contractors, and labor hire operators who may have profited from unlawful practices. Crosby highlighted issues such as wage theft, sham contracting, phoenixing, and safety breaches, arguing that these problems undermine honest businesses and put workers at risk. He called for a spotlight on the entire industry rather than focusing solely on one organization.
In parallel with the royal commission, Carroll announced plans to appoint a special prosecutor and bolster the Independent Broad-based Anti-corruption Commission with enhanced powers to follow money trails. These measures require new legislation, which the government intends to introduce before entering caretaker mode ahead of the November state election. The Victorian parliament is expected to sit for additional days to facilitate this legislative agenda, signaling the administration’s commitment to addressing systemic corruption before the upcoming vote.
Sources behind this briefing
Go to the original reporting
- The Guardian World↗‘There was grift, there was thuggery’: Victorian premier says ‘nothing is off limits’ at construction royal commission
