Multiple investigations launched into alleged scams on major projects

Insiders have lifted the lid on “ghost shifts” and other alleged scams on the Andrews government’s Big Build projects.

There are investigations under way into alleged scams on the $13bn Metro Tunnel.

Victoria’s infrastructure Big Build has been rocked by bombshell allegations of multimillion-dollar rorts that include taxpayers charged for unfilled “ghost” shifts and ­unpaid allowances.

Multiple investigations have been launched into the alleged scams on huge projects such as the level-crossings ­removal program and the $13bn Metro Tunnel.

Insiders have outlined how building giants and rail operators leading those projects are being billed for up to three shifts in 24 hours supposedly done by one worker.

Some of those are referred to as “ghost” shifts because they are not filled or only partly completed, while workers are moved between sites to allow subcontractors to ­invoice the builders multiple times.

The Andrews government’s Big Build has been rocked by the allegations. Picture: Nicki Connolly

The national rail safety regulator, and rail operator Metro Trains, are both now ­assessing the claims.

In one staggering instance, the Herald Sun has seen evidence of how a rail safety worker, supplied by Morson labour hire, was signed in for a night shift at one site, another night shift at a separate site, and a 12-hour shift the following morning.

When Morson Australia was contacted about the allegations, the Herald Sun was initially told it had suspended invoices it sent to Big Build companies while it conducted an internal audit of shifts that had been billed.

That claim was later retracted, and the company’s managing director Sandeep Nair said: “We are currently conducting an internal audit so we can’t comment on the allegations”.

Building giants and rail operators are allegedly being billed for up to three shifts in 24 hours supposedly done by one worker.

Insiders say some of those involved in the rort could pocket $250,000-$350,000 a year due to the massive wages for night shifts and extra shifts – but some workers were not being paid their entitlements or full allowances.

“There’s a lot of money to be made,” one said.

“From a safety perspective, someone could be killed.”

Some safety incidents are already alleged to have ­occurred on the rail network projects, including heavy ­machinery colliding and “stop boards” being crushed by trains.

The national rail safety regulator, and rail operator Metro Trains, are both now ­assessing the claims. Picture: Nicki Connolly

A spokesman for the Office of the National Rail Safety Regulator said it was “aware of allegations relating to fraudulent practices by labour hire companies contracted to major projects and railway ­operations in Melbourne”.

“These allegations are currently the subject of an ONRSR investigation, with the focus of our activities being on safety matters,” he said.

If breaches of safety laws were identified, he said, companies could be taken to court.

It is unclear whether anti-corruption bodies have been alerted to the alleged misuse of public money.

Opposition Leader John Pesutto on Friday said the Liberal Party will write to Victoria Police urging them to investigate the “potentially criminal behaviour”.

“If these sorts of practices are being applied right across our infrastructure portfolio, over $100bn in infrastructure projects, imagine if that’s just 1 per cent, or 2 or 3 per cent, that’s an enormous amount of money,” he said.

“We need to fix that.”

A spokesman for Metro Trains said it expected “the highest level of standards from all suppliers who provide ­services to Metro”.

“We’re taking these allegations seriously and are thoroughly reviewing this matter,” he said.

One of the rorts has been outlined by project insiders. During a 45-day shutdown of the Hurstbridge rail line to ­remove level crossings, workers were paid a 30 per cent loading instead of the double time charged to clients.

Other allegations relate to underpaid site allowances, worth up to $10.50 per hour on the Metro Tunnel, as well as travel allowances worth up to $53 a day, and inclement weather payments.

The practice of “ghost shifts” is also alleged to have occurred, where people are rostered for work – including on weekends when double- time penalties can be claimed – but no one turns up.

Opposition transport infrastructure spokesman David Southwick said it was not surprising major projects in Victoria had already blown out by billions of dollars if such ­behaviour was tolerated.

He said the minister responsible, Jacinta Allan, had serious questions to answer about “safety issues and corruption allegations on major transport projects”.

In response to questions put to the Andrews government and the Major Transport Infrastructure Authority, an MTIA spokesman would not comment, apart from saying: “In line with contractual requirements, agreements with subcontractors are a matter for our contract partners”.