Premier Jacinta Allan has acknowledged for the first time in unambiguous terms that criminals operated inside some of Victoria’s most significant publicly funded construction projects — but she has again refused to support a royal commission, arguing such an inquiry would not deliver the accountability Victorians are owed.
The admission came in an opinion piece published Thursday night in The Age, in which the Premier wrote that “we now know that criminals operated on some of Victoria’s construction sites” during the program her government has long branded the Big Build. The statement represents the starkest acknowledgement yet from a sitting Victorian premier that the multi-billion-dollar infrastructure agenda was compromised by organised criminal activity.
What the Premier actually said #
In her op-ed, Allan framed the admission as a necessary moment of honesty, describing the infiltration of construction sites as something her government now accepts as fact. She offered what the opinion piece characterised as an apology to Victorians — though she stopped short of identifying which specific projects were affected or how long the alleged infiltration persisted.
Victoria Crime News has not independently verified the specific claims made in the opinion piece, which represents the Premier’s own characterisation of events rather than findings from a court or independent body. Allan’s office had not responded to VCN’s request for further detail at the time of publication.
What is clear is that the government is now conceding ground it spent months defending. For much of the past year, Labor ministers deflected questions about corruption allegations involving labour hire companies and union officials connected to Big Build sites, insisting existing regulatory frameworks were sufficient. Thursday night’s op-ed marks a significant rhetorical shift.
Why the Big Build matters to Victorians #
The Big Build is the Allan — and before her, the Andrews — government’s umbrella brand for Victoria’s largest infrastructure spending program in the state’s history. It encompasses projects including the Metro Tunnel, the Level Crossing Removal Project, the West Gate Tunnel and the North East Link, collectively worth tens of billions of dollars in public expenditure.
Because these projects are publicly funded, any credible allegation of criminal infiltration — whether through labour hire kickbacks, union coercion, fraudulent invoicing or organised standover conduct — is a matter of direct public interest. Victorians are entitled to understand whether the money spent on their behalf was spent lawfully and whether the infrastructure delivered was built without criminal compromise.
VCN has been tracking governance concerns across Big Build projects as part of our ongoing Big Build Watch coverage. Allegations canvassed in that reporting have included claims about the role of labour hire companies in directing workers to sites, the conduct of officials connected to the Construction, Forestry and Maritime Employees Union (CFMEU), and the use of subcontracting arrangements that are alleged to have obscured financial flows.
The royal commission debate #
Calls for a royal commission have mounted steadily in recent months, driven by opposition politicians, crossbenchers and some within the construction industry itself. Proponents argue that a royal commission — which carries the power to compel witnesses, examine documents under oath and make binding findings — is the only mechanism capable of fully mapping the extent of criminal involvement in public construction.
Allan has now rejected those calls on multiple occasions. In Thursday night’s piece, she is reported to have argued that a royal commission would not solve the issue, though her office has not elaborated publicly on what she means by that framing. It is understood — though VCN has not confirmed this independently — that the government’s position is that existing bodies, including the Victorian Inspectorate, IBAC (the Independent Broad-based Anti-corruption Commission) and the Australian Building and Construction Commission’s successor body, are better placed to handle ongoing investigations.
Critics have pushed back on that argument forcefully. Opposition Leader John Pesutto, as well as several crossbench MPs, have said publicly that the existing integrity architecture has demonstrably failed to prevent the infiltration the Premier herself now admits occurred. That tension — between the government’s confidence in existing regulators and the opposition’s insistence those regulators were inadequate — sits at the heart of the current political dispute.
What IBAC’s role looks like from here #
IBAC has not publicly confirmed whether it is currently investigating matters related to the Big Build. The commission is not required to disclose active investigations, and VCN is not in a position to report on any specific IBAC inquiry without official confirmation.
What IBAC can do — and what distinguishes it from a royal commission in practical terms — is conduct coercive examinations in private, report findings publicly, and refer matters to prosecuting authorities. A royal commission, by contrast, would typically hold public hearings, allowing for a degree of transparency and public accountability that IBAC’s private-examination model does not automatically provide.
The distinction matters to the royal commission debate. Advocates for the inquiry argue that public hearings serve a democratic function beyond prosecution: they allow Victorians to see, in real time, how their public money was managed and mismanaged. Opponents argue that public hearings can compromise future prosecutions and that coercive private examination is a more legally durable tool.
The CFMEU dimension #
VCN reported earlier this year on the federal government’s decision to place the Construction, Forestry and Maritime Employees Union into administration following allegations — which remain before various regulatory bodies — of organised crime links at a national level. It is important to note that those allegations have not been tested in court, and the union and its officials are presumed innocent of any wrongdoing unless and until a court finds otherwise.
The Allan government’s acknowledgement that criminals operated on Big Build sites does not, in itself, constitute a finding that any particular union, company or individual is responsible. The Premier’s statement is a political acknowledgement, not a judicial or regulatory finding. Readers should understand that distinction clearly.
What happens next #
The political pressure on the Allan government is unlikely to ease following Thursday night’s op-ed. If anything, the admission that criminal infiltration occurred may embolden those calling for a more expansive inquiry, since the Premier has now conceded the premise that critics spent months trying to establish.
Parliament is expected to debate the royal commission question further in the coming sitting weeks. VCN understands — though has not independently confirmed — that crossbench MPs are considering whether to jointly move a motion calling on the government to establish such an inquiry.
The government, for its part, appears to be betting that a combination of the admission, the apology and its confidence in existing regulatory bodies will be sufficient to manage the political fallout. Whether that calculation proves correct will depend, in part, on what those regulatory bodies — particularly IBAC — produce in the months ahead.
VCN will continue to report on Big Build Watch as new information comes to hand. If you have information about corruption, fraud or criminal conduct in Victoria’s public construction sector, you can contact Crime Stoppers anonymously.
If you have information about crime or corruption, contact Crime Stoppers on 1800 333 000 or report online at crimestoppersvic.com.au. Reports can be made anonymously. If you or someone you know is experiencing distress, Lifeline is available 24 hours a day on 13 11 14, and Beyond Blue can be reached on 1300 22 4636. Aboriginal and Torres Strait Islander peoples can contact 13YARN on 13 92 76.
