The opening public hearing of the royal commission into Victoria’s Big Build has shown Jacinta Allan knew of allegations the construction union allowed criminals and bikies on to state projects as early as ۲۰۲۳.
It was also revealed that the inquiry – officially named the royal commission into the Integrity of Major Public and Civil Infrastructure Construction – held “closed” hearings following its launch in August, and plans to hold public hearings during the November state election campaign.
During Wednesday’s hearing, two confidential briefings written by the same four public servants from the Major Transport Infrastructure Authority and Department for Transport were tendered. Both were dated ۲۱ June ۲۰۲۳, when Allan was the minister for transport infrastructure.
The first briefing, which Allan did not sign, warned that the industrial relations environment on MTIA projects had become “highly challenging,” with an increase in “concerning behaviour” that could “significantly impact project costs and schedule”.
This included the construction union “pressuring” contractors to agree to additional staff and the use of certain people and companies “in order to avoid industrial disputation”, as well as “potential criminal elements (for example outlaw motorcycle club members and convicted criminals) being present” on worksites.
The existence of this letter was reported by the Age the day before Allan lost the Labor leadership to Ben Carroll, and she denied having read it.
The second briefing, however, was signed by Allan on ۲۲ June and included allegations that Toby Mitchell, a former member of the Mongols motorcycle club, had been present on a construction site, along with known members of the Bandidos and “known ex-criminals” including some wearing ankle bracelets.
It also mentioned that a “person was recently shot with a bolt gun off site but in a work context”, though “this did not break the skin.”
Allan referred the allegations to then Victoria police commissioner Shane Patton on ۲۳ June ۲۰۲۳, stating in a letter tendered to the royal commission: “Given that this issue has been raised with me and the potential seriousness of possible criminal activity in worksites operated by contracted providers on major infrastructure projects. I feel dutybound to also raise this matter directly with you”.
The documents reveal that Allan was aware of allegations of corruption on government sites a year before Nine newspapers’ investigation. Counsel assisting the commissioner, Chris Young KC, stated that Allan would have “every opportunity to respond” during the course of the inquiry.
The inquiry has been tasked with investigate allegations of corruption, criminal conduct and serious misconduct on the $۱۵۰bn pipeline of Big Build projects, including the $۲۶.۱bn North East Link, $۱۳.۵bn Metro Tunnel, $۱۰.۲bn West Gate Tunnel and $۱۵bn worth of level crossing removals.
Christopher Carr SC, also counsel assisting the commissioner, said their work would also include a “careful economic analysis” of how much taxpayer money had been lost to corruption. He said that a figure of $۱۵bn had become “notorious,” though it was “little more than back of the envelope guesstimates”.
However, Carr noted a ۲۰۲۶ report that Allan signed off on an $۸۳۷m payment to settle a construction consortium claim that included $۲۰۰m for excess labour, which “had not truly been required … [but] had paid for because of a lack of government assistance or influence in pushing back against union demands for excess labour”. He said this suggested “the costs of corruption might indeed be measured in multiple billions of dollars”.
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Commissioner Christopher Kourakis revealed that the inquiry had already conducted several closed hearings to obtain “sensitive information” that, if disclosed early, would have “compromised the commission’s ongoing investigations” – but vowed to hold as many in public as possible.
He said they would leave “no stone unturned in search for whatever is hidden, or whomever lurks underneath it” and said that the inquiry would pursue “everyone” suspected of being complicit in the abuse of power and “refer for prosecution whoever is implicated by the evidence the commission receives”.
Kourakis put unions, construction consortiums, subcontractors and the government all on notice.
“There should be no place in government or the industry or on its fringes for those persons whose moral compass malfunctions,” he said.
Wednesday’s hearing also revealed that two blocks of public hearings would be held before the end of the year, with the first concluding in mid-November, during the state election campaign.
“The commission’s work will not stop for the election and it will not be shaped by it,” Young said.
