Premier Jacinta Allan is facing mounting pressure to explain the Victorian Government’s handling of its $100 billion Big Build infrastructure program, after an integrity expert publicly dismissed her account of cost blowouts as “nonsense” and calls for a royal commission grew louder following fresh media allegations of organised crime involvement in construction contracts.
Allan on Monday told reporters that “inflationary pressures on projects is not corruption” — a response to reporting by Nine newspapers and the television program 60 Minutes that alleged money flowing through Big Build projects had reached gangland figures, and that the state government had received prior warnings about cost blowouts tied to demands from the Construction, Forestry and Maritime Employees Union (CFMEU). VCN is not in a position to independently verify those allegations at this time.
What the integrity expert said #
The pushback from outside government was swift. An integrity expert — whose assessment was reported in connection with the Nine and 60 Minutes investigation — said the Premier’s framing was inadequate given the nature of the allegations now in the public domain. Characterising the explanation as “nonsense”, the expert argued that conflating structural cost pressures with the specific claims of organised-crime involvement was a false equivalence that failed to answer the core question: whether public money had been misappropriated or extorted.
VCN understands that the expert’s concern centred not on whether inflation is a real factor in large-scale construction — economists broadly accept that it is — but on whether invoking it serves to close down scrutiny of conduct that may be of a different character entirely. The two explanations are not mutually exclusive, and critics argue the government has not demonstrated it has properly investigated the distinction.
What the media reports allege #
The Nine newspapers and 60 Minutes reports — which VCN is reporting on as a matter of public interest, not endorsing as established fact — allege that payments connected to Big Build projects found their way to individuals linked to Melbourne’s gangland milieu. The reports further allege that state government officials received warnings about cost blowouts attributed to CFMEU demands before those blowouts became public knowledge.
VCN is not republishing the specific names or detailed allegations contained in those reports where they relate to individuals who have not been charged with any offence and have not had an opportunity to respond in a public forum. Any person named in connection with those allegations is presumed innocent of any wrongdoing unless and until a court makes a contrary finding.
The CFMEU has been subject to significant regulatory attention in recent years at the national level, including the appointment of an administrator to its construction and general division by the federal government in 2024. That administration is ongoing. The union has not been convicted of any offence in relation to the matters now being reported.
Allan resists royal commission calls #
Opposition figures and independent commentators have called on the Allan Government to refer the allegations to a royal commission — a form of inquiry that carries coercive powers to compel witnesses and documents, and that operates independently of the executive government that appoints it.
The Premier publicly declined that call, saying existing oversight bodies were the appropriate avenue. She did not specify which bodies she considered best placed to examine the allegations, nor did she indicate whether any referral had been made or was being considered.
Victoria’s primary integrity body, the Independent Broad-based Anti-corruption Commission (IBAC), has the power to investigate serious corrupt conduct by public officers and public bodies, including conduct connected to the awarding of government contracts. IBAC operates independently of the government. VCN is not aware of any public statement from IBAC indicating it has commenced or is considering an investigation into the specific allegations reported this week.
The Victorian Auditor-General’s Office (VAGO) has previously reported on cost overruns in major transport infrastructure, including the Metro Tunnel and the Level Crossing Removal Project. Those reports identified governance concerns and budget management issues but did not make findings of corrupt conduct. They are separate from the allegations now in circulation.
Why cost blowouts matter — and why the distinction is important #
The Big Build is the largest infrastructure program in Victoria’s history, encompassing the Metro Tunnel, the West Gate Tunnel, the Suburban Rail Loop, level crossing removals, and a range of road and transport upgrades. The program’s headline figure has grown substantially since it was first announced, and successive VAGO audits have identified projects running materially over original budget estimates.
Cost blowouts in major infrastructure are common globally and can have multiple causes: scope changes, unexpected ground conditions, supply-chain pressures, labour shortages, and, as the Premier noted, general inflation in construction materials and wages. Establishing whether a blowout has an innocent structural cause or a corrupt one requires forensic examination of contracts, procurement decisions, and payments — precisely the kind of work that a royal commission or an IBAC investigation is equipped to undertake.
The integrity expert’s core point, as reported, is that dismissing allegations of criminal influence by pointing to macroeconomic conditions does not constitute an investigation. It is a deflection — and one that, in the expert’s assessment, is not credible on the publicly available evidence.
What we do not yet know #
Several critical questions remain unanswered in the public domain at this stage:
- Whether Victoria Police is investigating any of the specific allegations raised in the Nine and 60 Minutes reports.
- Whether IBAC has received a referral or has commenced a preliminary inquiry.
- Whether any contracts, subcontracts, or payments have been frozen or referred for audit as a result of the reporting.
- Whether the government warnings about cost blowouts referenced in the media reports were documented in ministerial briefings or departmental records, and whether those documents are being preserved.
- What specific CFMEU demands are alleged to have contributed to blowouts, and whether those demands were the subject of any formal complaint or industrial relations proceeding.
VCN has sought comment from the Premier’s office, the Department of Transport and Planning, and IBAC. We will update this report as responses are received.
What happens next #
The political pressure on the Allan Government is unlikely to ease in the short term. The opposition has indicated it intends to pursue the matter through parliamentary questions and committee processes. Several crossbench members of the Legislative Council have signalled support for an inquiry, though the precise mechanism — a parliamentary committee, an IBAC referral, or a royal commission — remains contested.
Any royal commission would need to be established by letters patent issued by the Governor on the advice of the Executive Council — meaning the government itself would need to authorise it. That dynamic makes it politically difficult for a government under scrutiny to initiate its own commission, and is one reason opposition and crossbench figures are pressing the issue publicly.
For Victorian taxpayers, the stakes are significant. The Big Build is funded overwhelmingly from public borrowing and consolidated revenue. If even a fraction of the cost growth documented in successive audits reflects corrupt conduct rather than legitimate market pressures, the financial and democratic implications are serious. That question deserves a credible, independent answer — and the Premier’s inflation explanation, her critics argue, is not one.
VCN’s Big Build Watch coverage is an ongoing series examining governance, cost, and accountability in Victoria’s major infrastructure program. If you have information relevant to this story, contact our newsroom securely or call Crime Stoppers on 1800 333 000.
If you have concerns about corruption or misconduct in public administration, you can contact IBAC on 1300 735 135 or at ibac.vic.gov.au. Disclosures can be made confidentially.
