56 active allegations on Big Build projects receiving federal funds
11 of Victoria’s largest infrastructure projects, including the multi-billion-dollar Suburban Rail Loop and North East Link, are now the subject of 56 separate allegations of fraud, corruption, theft and criminal conduct following a rise in reports of suspicious behaviour.
Figures revealed at Senate estimates hearing reveal $26bn North East Link is the project responsible for the most complaints after just 24 hours Prime Minister Jacinta Allan says ‘no evidence’ Cyclists benefited from this project.
Department officials told a Senate committee Monday that the new rules require states to notify officials of serious allegations that are under investigation if they involve projects that receive federal cash. More than half of the 63 allegations reported nationally came in the past two weeks.
Commonwealth officials said they had been notified of 28 allegations of corruption, undisclosed conflicts of interest, fraud, breaches of workplace laws and criminal behavior relating to the North East Link. The federal government allocated $5 billion to the project.
On Sunday, Allan told reporters there was no evidence that project funding had resulted in bicycles, but when asked about the imprint reporting a company linked to bicycles secured contracts As the leading female-led supplier of women workers to the Labor Party’s Grand Body.
A landmark report The CFMEU report on corruption, published three months ago, revealed bribery and bikie gangs had infiltrated major government infrastructure projects.
The Prime Minister said he had given Victoria Police and the Labor Hiring Agency the necessary powers to investigate if allegations were made.
But figures released in the Senate estimates show that allegations of fraud, theft, corruption and criminal behavior remain a serious problem across the Big Build and are being investigated.
The allegations were also more widespread in Victoria; This accounts for 56 of the 63 claims reported nationwide to the federal government under the new process.
There are 16 allegations of fraud, bullying, corruption, breaches of workplace laws and criminal behavior on the Commuter Rail Loop.
Officials also revealed that only four of these allegations regarding the rail line were reported before the Albanian government announced in its latest budget that it would donate $3.8 billion to the project.
Then last week Victoria reported a further 12 allegations to the federal government. These statistics are reported monthly and are timely, officials said.
Federal Infrastructure Secretary Jim Betts has written to the Victorian government asking about the high number of reports in the state. Allan’s government responded in writing on 15 May.
Asked about Victoria’s overrepresentation, Betts said the issues reflected in the data were being investigated by relevant authorities, but the data was now shared with the Commonwealth through new guidelines.
“We are not the police and we are not the Fair Work Ombudsman, but through the influence we have through our funding contributions we can ensure that these jurisdictions comply with the rules set by the current government,” he said.
Betts said federal authorities would use that power “to ensure that incidents are reported to the appropriate regulatory and investigative authorities in a timely manner, working with our colleagues in the Victorian government.”
Deputy minister Jessica Hall said the information would be taken into account and lead to a decision on further steps, which could include looking for evidence that Commonwealth money was involved in corruption or fraud.
“We have done this before to get assurance on such projects… We have cut off financing before getting assurance,” he said. “We’ll take a look and see if any conditions need to be imposed on funding.”
He said it was encouraging that the number of problem reports on projects was increasing, which made people feel comfortable reporting problematic behavior.
“We’re essentially providing us with information that allows us to understand what’s actually happening in the system and enable the system to target actions.”
He also noted that the allegations relate to 18 of 600 major projects in the federal government’s infrastructure program.
National senator Bridget McKenzie said the level of systematic corruption and abuse on these projects has never been seen before and the $3.8 billion in extra funding for the Suburban Rail Loop should be stopped.
“The Commonwealth Treasury should not release even a dollar to this project until we are sure it is compatible with other states,” he said.
“This is unprecedented. There’s about 89 per cent of problem behavior in Victoria. Now it’s in any other risk assessment matrix that screams systemic.”
Ministry officials did not elaborate on the details of each allegation because the allegations are still being investigated by authorities and they do not want to harm those investigations.
Outside Victoria, the Federal Department for Infrastructure and Transport has been notified of four allegations relating to four projects in NSW and three allegations linked to three projects in Queensland.
Labor senator Malarndirri McCarthy told the committee the government had “acted swiftly on any conduct, illegal or otherwise, in terms of infrastructure and construction across the country”.
A Victorian government spokesman issued a statement that did not directly respond to the evidence in the Senate but pointed to actions by the police and the Labor Hiring Agency to strengthen their powers over the construction industry.
“Criminal activity on workplaces undermines every worker and disrupts every Victorian, and anyone who engages in this activity must face the full force of the law,” the statement said.
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Daniella White is The Age’s state political correspondent. Contact her at da.white@nine.com.auConnect with: X or email.
