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Allan government releases final report into corruption allegation at CFMEU

The Victorian government’s labour hire rules will be overhauled and a new independent company reporting system set up to help weed out corruption in the construction sector following the release of the government’s final report into the CFMEU.

Report: Bikies remain on worksites despite union's claims

The Victorian government will overhaul the state’s labour hire rules and create a new independent company reporting system to help weed out crime and bikie activity in Victoria’s construction sector.

The Allan government has released the final and long-awaited report into corruption in the CFMEU and the state’s infrastructure projects, saying systems will be overhauled to weed out the “rotten culture”.

The report made eight recommendations, which the state will support in principle or in full.

The regulatory powers of the Labour Hire Authority (LHA) will be boosted by broadening the fit and proper person test to incorporate past indictable convictions, insolvencies, and close associations with individuals deemed unfit or improper.

The state will also set up an independent complaint pathway for allegations of corruption, harassment and intimidation to be reported.

Construction policies and contracts for Victorian government-funded projects will also now include clauses addressing criminal or unlawful conduct and gang association and require companies to report concerns to authorities.

John Setka stood down as Victorian CFMEU leader in July. Picture: Roy VanDerVegt
John Setka stood down as Victorian CFMEU leader in July. Picture: Roy VanDerVegt

On Wednesday, Premier Jacinta Allan welcomed the report saying “Criminal and unlawful behaviour has no place in Victoria’s construction industry, and I thank (Greg) Wilson for his work that will help us stamp it out”.

“Unions are meant to keep people safe – we are making sure that people coming forward with information about conduct on worksites have the complaints process and the protections they deserve,” she said.

Opposition Leader John Pesutto labelled the report a “white wash” on Wednesday, arguing the reforms would be “ineffective” and fail to stop alleged CFMEU misconduct.

“This report is pathetic,” he said.

“It is a hopeless attempt to address a very serious problem affecting not only the delivery of major projects but our economic performance as a state, and our soaring debt.”

The final report of the Formal Review into the Victorian Government Bodies’ Engagement with Construction Companies and Construction Unions, said that the Victorian government had the ability to tighten controls, but also said that the federal government and private companies had bigger roles to play.

“Many of the most powerful levers and interventions to respond to these allegations sit with the Commonwealth, as the jurisdiction responsible for industrial relations law, and with the administration of the CFMEU,” Mr Wilson said.

“As this report describes, a system this complex requires a multifaceted set of responses to effect change – cultural, regulatory, legal, policy and contractual. No agency on its own can resolve these issues. Therefore, the review considers that the responses open to Victoria centre around driving a concerted and collective effort by relevant employers, agencies and law enforcement officers to encourage complaints and to share and act on information they receive.”

Jacinta Allan ordered the review after allegations that bikies had infiltrated the CFMEU. Picture: Luis Enrique Ascui
Jacinta Allan ordered the review after allegations that bikies had infiltrated the CFMEU. Picture: Luis Enrique Ascui

The review was ordered by Ms Allan in July following allegations that underworld figures and senior bikies had infiltrated the CFMEU and the government’s Big Build projects.

At the time, Ms Allan said the “rotten culture” in Victoria’s construction sector needed to be pulled out by the roots.

Longtime bureaucrat Greg Wilson was tasked to investigate — he has worked as the chair of the TAC and CFA, a Secretary of the Department of Justice and Regulation, and most recently as the Acting Commissioner of the Victorian Public Sector Commissioner.

The allegations that prompted the review also led to the sudden resignation of former CFMEU boss John Setka, and an Australian Labor Party ban on donations from the CFMEU’s construction division.

Union branches across the country have also been placed into administration leading to multiple major rallies where thousands of workers have downed tools.

An interim report released in August revealed state government and corruption agencies had shortcomings that needed to be further probed.

Those agencies include the Independent Broad-based Anti-Corruption Commission (IBAC), Labour Hire Authority, Victorian Ombudsman, Victorian Auditor General’s Office, and WorkSafe.

Among the four key areas identified in the report was a need to investigate whether the integrity controls should be expanded to ensure “allegations of corrupt behaviour in Victorian Government construction projects can be effectively examined by state integrity agencies.”

Mr Wilson noted that reform within integrity agencies “would give rise to challenging legal questions,” and expanding powers “would create more competing priorities for that agency’s existing resources.”

He revealed he would also probe the selection process for health and safety representatives, right-of-entry permit holders, and union delegates on state government construction projects.

Ms Allan said the government was looking into whether the expanded fit and proper person test could be implemented retrospectively.

She was unable to say how much the referral body would cost taxpayers.

The laws will be introduced to parliament next year.

Read related topics:CFMEU

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Original URL: https://www.heraldsun.com.au/news/victoria/allan-government-releases-final-report-into-corruption-allegation-at-cfmeu/news-story/829784cc027f8b0b8ba3c9be99f1f950