Building authority workers charged as part of bribes-for-registration probe

Two building watchdog employees have been charged and a third remains under investigation over accusations they took bribes to register builders.

The Victorian Building Authority confirmed in a statement on Wednesday that the trio had been stood down as a probe by corruption investigators continues.

Two VBA staff have been charged after raids.Credit: Wayne Taylor

“Today Independent Broad-based Anti-corruption Commission [IBAC] notified us they have charged two employees with criminal offences and are investigating a third,” VBA chief executive Anna Cronin said.

“The employees involved have been stood down by the Victorian Building Authority with immediate effect.”

Cronin said the authority had referred suspicious activity to IBAC in June last year, adding that the authority had been “supporting them with their investigation ever since”.

“The VBA is now reviewing any impacts of this alleged activity to ensure the integrity of our systems. We will not be commenting any further while the IBAC investigation and court processes are ongoing.”

In a statement, IBAC confirmed it had executed search warrants at various premises on Wednesday as part of Operation Perseus.

“Following this activity, two Victorian Building Authority employees have been charged with criminal offences relating to the assessment of builder registrations, in exchange for a financial benefit,” the commission said.

“These actions against key persons of interest are a result of IBAC’s Operation Perseus – an investigation into allegations of corrupt conduct at the VBA related to the assessment of builder registrations, in exchange for a financial benefit.”

The raids came just months after the board of the state building regulator was removed by the Allan government and Cronin was installed as the sole commissioner.

The new structure, announced in March, set up advisory committees made up of building and plumbing experts.

The authority has been under scrutiny since the 2022 suicide of building inspector Rob Karkut, whose death led to two independent inquiries into the regulator’s toxic workplace.

The Age revealed the authority was warned it may have broken the law by using unqualified staff as part of an investigation into Karkut’s death.

A lengthy investigation by The Age and 60 Minutes about inspectors completing visual audits rather than physically attending construction sites led to the resignation of former chief Sue Eddy.

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