IBAC says it can’t investigate key players in CFMEU Big Build scandal
Victoria’s corruption watchdog has revealed it is unable to investigate corruption claims involving contractors on CFMEU dominated Big Build projects. Here’s why.
The state’s anti-corruption watchdog has admitted that the agency lacks key powers to investigate contractors, including those allegedly involved in the CFMEU Big Build scandal and has urged tough “follow the money” laws to address future public funds scandals.
Independent Broad-based Anti-corruption Commissioner Victoria Elliott revealed that the agency is hamstrung when it comes to activating investigations into some allegations due to the lack of a direct link with a public agency.
Appearing before the Integrity and Oversight Committee, Commissioner Elliott said subcontracting arrangements were a concern.
“When we receive a complaint or a notification, and there is a subcontracting arrangement, we need to have a direct relationship between the conduct and a public officer or a public body for us to commence an investigation,” Commissioner Elliott told the panel.
“If we cannot find that direct link, we cannot commence.”
The panel was given a hypothetical example: “Where there’s a big government contract — involving a significant amount of resources — one party might contract with another, but then they will contract with others, and the money moves along. If the conduct relates to a body further down the track... it’s too far removed,” she warned.
Commissioner Elliott said that tougher legislation is required for the agency to do its job.
“We’re asking for the legislation to be changed so that we can follow the money,” she said.
When asked for an update regarding the Big Build scandal, Commissioner Elliott revealed that the agency was legally unable to confirm whether it had received a complaint, whether it was actively investigating, or whether it had found any corruption.
This was despite Premier Jacinta Allan publicly revealing she has asked both Victoria Police and IBAC to investigate allegations of criminal conduct by CFMEU officials on government worksites.
The Premier said she had “zero tolerance” for the “thuggish” behaviour exposed in the media, adding that this “rotten culture must be pulled out by the roots.”
IBAC chief executive Alison Byrne, who was also at the hearing, could not comment on whether an investigation was ongoing or if there was one at all.
Their appearance at the hearing follows ongoing calls from industry executives and subcontractors for a royal commission to investigate the extent of rorting, intimidation, and kickbacks at major infrastructure projects, dating back to 2023.
Many are frustrated that current authorities, including IBAC and Victoria Police, have limited power.
In April, industry insiders revealed ongoing intimidation tactics used by figures connected to the CFMEU to maintain control over major projects, stating that it remains rampant and is costing taxpayers millions, almost a year after the allegations first came to light.
Commissioner Elliott also confirmed to the panel that IBAC lacks many of the powers that watchdogs have in other jurisdictions, such as New South Wales and Queensland. This includes stronger investigative powers, the ability to keep the public informed, and the threshold for holding public hearings.
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Originally published as IBAC says it can’t investigate key players in CFMEU Big Build scandal
