Bikies, ‘moral compass malfunctions’ and corruption cost: Victoria’s Big Build royal commission holds first public hearing

Former premier Jacinta Allan knew of allegations the CFMEU allowed criminals and bikies on to Big Build projects as early as 2023, documents tendered to the inquiry have shown. Photograph: Con Chronis/AAP View image in fullscreen Former premier Jacinta Allan knew of allegations the CFMEU allowed criminals and bikies on to Big Build projects as early as 2023, documents tendered to the inquiry have shown. Photograph: Con Chronis/AAP Bikies, ‘moral compass malfunctions’ and corruption cost: Victoria’s Big Build royal commission holds first public hearing Inquiry investigating allegations of corruption and criminal conduct on state’s $150bn pipeline of infrastructure projects to leave ‘no stone unturned’ Follow our Australia news live blog for latest updates Get our breaking news email, free app or daily news podcast 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 2023. It was also revealed that the inquiry – officially named the royal commission into the integrity of major public and civil infrastructure construction projects in Victoria – 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 (MTIA) and the transport department were tendered. Both were dated 21 June 2023, 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 work sites. 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 22 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 the then Victorian police commissioner Shane Patton on 23 June 2023, 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 the 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. View image in fullscreen Commissioner Christopher Kourakis revealed that the inquiry had already held several closed hearings to obtain ‘sensitive information’. Photograph: Joe Armao/AAP The inquiry has been tasked with investigating allegations of corruption, criminal conduct and serious misconduct on the $150bn pipeline of Big Build projects, including the $26.1bn North East Link, $13.5bn Metro Tunnel, $10.2bn West Gate Tunnel and $15bn 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 $15bn had become “notorious”, though it was “little more than back of the envelope guesstimates”. However, Carr noted a 2026 report that Allan signed off on an $837m payment to settle a construction consortium claim that included $200m 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”. 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 hearings 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 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. Explore more on these topics Victorian politics Australian trade unions Victoria Labor party Ben Carroll Jacinta Allan Construction industry news Share Reuse this content