Follow-the-money powers to be announced for IBAC amid Big Build corruption
Victoria’s top anti-corruption agency will be given long-sought powers to investigate the misuse of public funds at the state’s Big Build construction sites.
Premier Jacinta Allan is expected to unveil a plan this afternoon to increase the coercive powers and reach of the state’s Independent Broad-Based Anti-Corruption Commission, established 15 years ago.
The legislative changes, proposed after years of lobbying by successive IBAC commissioners, would give the agency money-chasing powers similar to those currently held by the Victorian Auditor General and allow for the wider use of public hearings in corruption investigations.
This will allow IBAC to extend its investigations beyond the behavior of main contractors to labor hire companies and subcontractors involved in government-funded projects.
News of the changes comes as Allan seeks to contain the political fallout and reputational damage caused by criminal infiltration of major infrastructure projects, which barrister Geoffrey Watson, SC, estimates have cost taxpayers $15 billion.
Parliament’s integrity oversight committee, in its latest report last December, called on the government to overhaul IBAC’s legal framework.
His proposals included proposed legislative changes to broaden the definition of corruption, introduce money-chasing powers and expand the use of public hearings beyond the “exceptional circumstances” provision already in the IBAC Act.
Since its establishment under the Baillieu government, IBAC has been limited to a narrow definition of corrupt conduct; This means that he must suspect on reasonable grounds that a crime has been committed before initiating an investigation and invoking his coercive powers.
It has rarely held public hearings, even on issues of high public interest. A striking example of this was IBAC’s decision in December 2021 to question then-prime minister Daniel Andrews behind closed doors in relation to four separate anti-corruption investigations.
This is in stark contrast to the approach of ICAC, the peak anti-corruption body in NSW. Former NSW premier Barry O’Farrell resigned after accidentally misleading the ICAC during a public hearing about a donated bottle of wine. Gladys Berejiklian left the premiership before public scrutiny.
The federal National Anti-Corruption Commission has the same “exceptional circumstances” provision as Victoria’s IBAC. Since the agency was established in July 2023, all its examinations have been conducted confidentially.
IBAC reform has been put forward by former commissioners Stephen O’Bryan and Robert Redlich, current Commissioner Victoria Elliott and the International Center for Public Integrity and Transparency.
Victoria’s three leading integrity bodies – IBAC, Ombudsman and Auditor General – are also pushing for their annual budgets to be set by parliament rather than the government.
Professor AJ Brown, chief executive of Transparency International Australia, presented survey data earlier this year showing public confidence in the Allan government’s commitment to fighting corruption was the lowest of all states.
The survey was conducted after this imprint’s Building Bad series revealed government-funded construction sites were being infiltrated by corrupt union officials, biker gangs and gang figures.
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Chip Le Grand leads our state politics reporting team. He had previously served as the newspaper’s chief correspondent and was a journalist with 30 years of experience.Connect via email.
