Victorian Premier Jacinta Allan has firmly rejected calls for a royal commission into alleged corruption within the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU), dismissing claims that taxpayers have lost $15 billion on government-funded Big Build projects due to union misconduct.
Speaking publicly for the first time since the explosive report, Allan described the CFMEU culture as “rotten” and apologised to construction workers affected by misconduct on union-controlled sites. However, she insisted that there is no need for a royal commission, citing prior federal inquiries and warning that a commission would only delay justice.
The report, prepared by corruption expert Geoffrey Watson SC, painted a damning picture of union activity, describing infiltration by organised crime, extortion, drug distribution, appointment of criminals to union roles, and instances of strippers being brought onto work sites. Watson estimated these practices have cost Victorian taxpayers up to $15 billion.
Allan stated that the $15 billion figure is unsubstantiated and defended her previous record as minister overseeing the projects, highlighting that allegations were referred to the relevant authorities when raised. She also praised the work of CFMEU administrator Mark Irving and Victoria Police Taskforce Hawk in removing corrupt actors from union ranks.
Opposition figures, including Attorney-General James Newbury and party leader Jess Wilson, have criticised Allan’s handling of the scandal, calling for a full IBAC investigation. They claim that systemic corruption in Victoria’s building sector remains unaddressed and warn that ongoing misconduct could continue without a formal inquiry.
Despite pressure, Allan rejected banning the CFMEU, arguing unions play a vital role in ensuring safe and secure workplaces. She concluded by expressing sympathy for construction workers and committing to support law enforcement in eradicating corruption.
