The short version
- Documents show former transport minister Jacinta Allan received briefings in mid-2023 regarding alleged criminal activity and union pressure on state infrastructure projects.
- Commissioners have signaled an intent to pursue prosecutions and conduct a rigorous economic analysis of taxpayer losses, potentially reaching billions of dollars.
- Public hearings are scheduled to continue through November, overlapping with the upcoming state election campaign, while closed sessions were held earlier to protect sensitive investigations.
The royal commission investigating integrity issues within Victoria’s major infrastructure projects has commenced its first public hearing, marking a significant escalation in the scrutiny of the state’s $150 billion construction pipeline. The inquiry, officially titled the Royal Commission into the Integrity of Major Public and Civil Infrastructure Construction Projects in Victoria, aims to examine allegations of corruption, criminal conduct, and serious misconduct across several high-profile developments. These include the North East Link, Metro Tunnel, West Gate Tunnel, and various level crossing removal projects.
Central to the opening proceedings were confidential briefings dated June 21, 2023, prepared by public servants from the Major Transport Infrastructure Authority and the transport department. These documents indicate that Jacinta Allan, who served as the minister for transport infrastructure at the time, was aware of concerns regarding the industrial relations environment on these sites well before recent media investigations brought the issues to wider public attention. The briefings warned that the situation had become highly challenging, with behaviors that could significantly impact project costs and schedules.
One briefing, which Allan did not sign, described a pattern of pressure from construction unions on contractors. This included demands for additional staff and the use of specific individuals or companies to avoid industrial disputes. The document also raised concerns about the presence of potential criminal elements, including members of outlaw motorcycle clubs and convicted criminals, on work sites. Allan has previously denied reading this particular letter, which was reported by media outlets shortly before she lost the Labor leadership to Ben Carroll.
A second briefing, signed by Allan on June 22, 2023, contained more specific allegations. It noted the presence of Toby Mitchell, a former member of the Mongols motorcycle club, along with known members of the Bandidos and other individuals identified as ex-criminals, some wearing ankle bracelets. The document also referenced an incident where a person was shot with a bolt gun off-site but in a work context, though the injury did not break the skin. Allan referred these allegations to then-Victorian Police Commissioner Shane Patton the following day, citing a duty to raise matters of potential criminal activity.
Counsel assisting the commissioner, Chris Young KC, stated that Allan would have ample opportunity to respond to these findings during the course of the inquiry. The commission is tasked with leaving no stone unturned in its search for hidden corruption or abuse of power. Commissioner Christopher Kourakis emphasized that the inquiry would pursue everyone suspected of complicity and refer those implicated by evidence for prosecution. He placed unions, construction consortiums, subcontractors, and government officials on notice, stating there should be no place for those whose moral compass malfunctions.
Beyond identifying individuals, the commission is undertaking a careful economic analysis to determine how much taxpayer money has been lost to corruption. While a figure of $15 billion has circulated in public discourse, counsel Christopher Carr SC described this as little more than a rough estimate. However, Carr pointed to a 2026 report indicating that Allan signed off on an $837 million payment to settle a construction consortium claim. This settlement included $200 million for excess labor that was not truly required but was paid due to a lack of government pushback against union demands.
Carr suggested that these specific instances imply the costs of corruption could indeed be measured in multiple billions of dollars. The inquiry aims to provide a precise accounting of financial losses rather than relying on speculative figures. This economic assessment is a critical component of the commission’s mandate, intended to quantify the impact of misconduct on public funds and project efficiency.
The commission has already conducted several closed hearings to obtain sensitive information that could have compromised ongoing investigations if disclosed prematurely. Commissioner Kourakis vowed to hold as many hearings in public as possible to ensure transparency. The schedule includes two blocks of public hearings before the end of the year, with the first concluding in mid-November. This timing places part of the inquiry’s work directly within the state election campaign period.
The decision to proceed with public hearings during the election has drawn attention to the political implications of the findings. The commission’s work is designed to be independent and thorough, focusing on evidence rather than political narratives. By continuing through November, the inquiry ensures that its initial findings and testimonies will be part of the public record as voters prepare for the state election. This approach underscores the seriousness with which the government is treating allegations of systemic failure in major infrastructure delivery.
As the hearings progress, the focus will remain on establishing a clear timeline of events, identifying responsible parties, and understanding the mechanisms that allowed alleged misconduct to occur. The commission’s mandate extends beyond individual cases to examine broader systemic issues within the construction industry and government oversight. The outcome of this inquiry could lead to significant reforms in how major public projects are managed, contracted, and monitored in Victoria.
Sources behind this briefing
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- The Guardian World↗Bikies, ‘moral compass malfunctions’ and corruption cost: Victoria’s Big Build royal commission holds first public hearing
