Scandal deepens as premier denies ‘hoax’ CFMEU referral
A state premier denies deliberately leading the state’s corruption watchdog into a “hoax” to avoid government accountability over the CFMEU scandal.
Jacinta Allan remains under intense scrutiny following a damning report alleging the Victorian government “did nothing” to curb rising crime within the state’s rogue construction syndicate, leading to an estimated $15 billion blowout in major project budgets.
Ms Allan defended the criticism by arguing that she had referred all allegations of misconduct against her to the relevant authorities, including a referral to the Victorian corruption watchdog in mid-2024.
In a rare public statement, the independent Broad-Based Anti-Corruption Commission confirmed that his referral was determined to be outside the agency’s jurisdiction.
The independent body can investigate public officials, but under its legal framework it cannot investigate contractors or third parties such as union officials and cyclists.
Ms Allan was notified of IBAC’s response on 11 October 2024 and denied that she had phrased her guidance in a way that would fail.
“Referrals have been made to the Fair Work Commission, Victoria Police and IBAC,” he told reporters on Tuesday amid fierce questioning.
“I made those referrals immediately and I will not address how these independent investigative agencies responded.”
The Victorian opposition has described the referral letter released to the media on Sunday as a “hoax” and “scam” in response to claims the government ignored it.
Former IBAC commissioner Robert Redlich said the prime minister should have been aware of the limitation when making the guidance.
“If he didn’t know, he should have known,” he told Melbourne radio station 3AW.
In December, the Victorian parliament’s powerful Integrity and Oversight Committee recommended that the IBAC Act be amended to give the watchdog powers to “chase the dollar” to investigate public funds spent by private organisations.
Mr Redlich said the government should have addressed this loophole long ago, given allegations of corruption at the CFMEU date back to the best part of a decade.
The state coalition and the Greens have signaled their support for reforms that would expand the watchdog’s scope, but Ms Allan was non-committal on the issue.
“I have no announcements to make regarding IBAC,” he said.
Barrister Geoffrey Watson SC’s report into the CFMEU alleged worksites had become drug distribution centres, killers were given high-paying jobs and strippers performed for night crews after organized crime infiltrated the union.
His report, titled Rotting from the Top, named former union officials John Setka and Joe Myles, as well as Victorian underworld figure Mick Gatto, as miscreants.
The edited episodes claimed the state’s Labor government turned a blind eye and most of the estimated $15 billion “went directly into the hands of criminals and organized crime gangs”.
Ms Allan continued to refuse to call a state royal commission to test the “unsubstantiated” claims, with CFMEU director Mark Irving stating that KC had the “responsibility and authority” to investigate the veracity of the allegations.
Opposition Leader Jess Wilson said it was the premier’s responsibility to oversee how Victorian taxpayers’ money was spent.
“Once again this prime minister refuses to take any responsibility,” he said.
“As if he doesn’t care that taxpayer money is being spent to fund criminal enterprises on government construction sites in this state.”
