John Pesutto urges statewide audit into Victorian government contracts with CFMEU

Victoria’s auditor general has been urged to undertake a statewide audit of every government contract to determine whether the militant CFMEU or its affiliates may have been favoured.

Victoria’s auditor general has been urged to undertake a statewide audit of every government contract to determine whether the militant CFMEU or its affiliates may have been favoured.

In the wake of claims of criminal conduct by senior Victorian CFMEU officials across major taxpayer-funded construction sites, Opposition Leader John Pesutto has written to Auditor-General Andrew Greaves requesting a widespread investigation.

Mr Pesutto – who has called on Premier Jacinta Allan to call a Royal Commission or resign over the scandal – said allegations of union standover tactics, as well as other serious misconduct claims has raised “serious concerns regarding the role of government policy and procurement practices”.

John Pesutto has written to Auditor-General Andrew Greaves requesting a widespread investigation. Picture: David Clark

“The CFMEU’s reputation for misconduct is well-documented, and its influence on major projects raises significant red flags about the fairness and probity of Government procurement practices,” Mr Pesutto said in his letter, which has been obtained by the Herald Sun.

“Directing business to the CFMEU or its related entities undermines fair competition and inflate project costs, wasting taxpayers’ funds and undermining freedom of association with other unions.

“We urge you to initiate a comprehensive audit to uncover any instances where Government contract terms, policy, or procurement practices may have unduly favoured the CFMEU or its affiliates.

“Victorians expect and deserve the assurance that Victorian Government projects are conducted with the highest standards of integrity and accountability.”

The Victorian opposition leader has urged Premier Jacinta Allan to call a Royal Commission or resign over the CFMEU scandal. Picture David Clark

Ms Allan, who previously was the Minister responsible for the state’s major project pipeline, ordered former Department of Justice secretary Greg Wilson lead an independent review into the construction sector and the CFMEU.

The review will investigate and recommend ways to fix the powers of Victorian agencies to respond to criminal allegations or unlawful conduct within the construction sector, as well as how the government can create protections for whistleblowers with allegations of bad behaviour.

But the opposition, which failed in its bid to launch a parliamentary inquiry into the allegations, has warned Mr Wilson’s investigation will be a “whitewash”.

“Premier Jacinta Allan has instead opted for a review that is intended solely to protect her and her ministers, and that’s not acceptable. Her review by Mr Greg Wilson, will not compel witnesses, it will not involve public hearings and it will certainly not involve any consideration of potentially criminal matters in this CFMEU scandal, which is just unacceptable,” he said.

John Pesutto wants a statewide audit of every government contract involving the CFMEU. Picture: NewsWire / Nicki Connolly

Ms Allan has said she is “disgusted” by the allegations and vowed to “stamp out these activities for good”.

“We will tear this rotten culture out by its roots,” she said when the allegations were first exposed.