Premier Jacinta Allan has publicly released a referral letter to the state’s corruption watchdog, the Independent Broad-based Anti-corruption Commission (IBAC), in response to serious allegations regarding the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU). The allegations, which suggest a staggering $15 billion in corruption related to the state’s Big Build infrastructure program, have prompted the government to assert that claims of misconduct represent an attack on workers.
The letter, dated July 14, 2024, was made available to the media on February 15, 2026, following requests for transparency. In the letter, Allan expresses her concern over the allegations and emphasizes the importance of investigation by IBAC. She stated, “I am concerned to ensure that any allegations of serious corruption that are within the remit of IBAC are identified, investigated and appropriate action taken by IBAC.”
Allegations of Serious Misconduct
Integrity expert Geoffrey Watson recently published a report detailing claims of serious criminal behaviour within the CFMEU, including drug distribution and sexual exploitation linked to the Big Build program. Watson’s findings included a critical section that condemned the government and relevant authorities for not addressing these issues adequately. The report has intensified scrutiny on the union, with Allan asserting that she only learned of systemic issues following a media investigation titled Building Bad in July 2024.
In her letter, Allan outlines several alarming allegations, including that a CFMEU health and safety official misused a government vehicle for “bikie gang activities.” She also mentioned that an individual reportedly drove to Footscray Hospital suffering from a gunshot wound while using a state-funded vehicle. Furthermore, the letter indicates that CFMEU officials have allegedly advised contractors to hire subcontractors controlled by organised crime.
Allan’s correspondence explicitly states, “Accordingly, I am referring these matters to IBAC for investigation.” Despite the serious nature of these claims, IBAC has a policy of not commenting on ongoing investigations. Last year, during a parliamentary inquiry, IBAC Commissioner Victoria Elliott indicated the need for enhanced powers to trace taxpayer dollars spent on subcontractors not directly employed by the government, where much of the alleged misconduct occurs.
Government and Opposition Responses
In light of the allegations, the government has faced criticism for its handling of corruption within taxpayer-funded projects. Watson estimated that corruption on Big Build worksites has inflated costs by approximately $15 billion, a figure echoed by Murray Furlong, Chief of the Fair Work Commission. However, the CFMEU’s administrator, Mark Irving, has contested this estimate, asserting that it remains unverified.
Allan has dismissed the $15 billion figure as baseless, reiterating the government’s position that “these claims don’t stack up.” A spokesperson for the government supported this stance, stating, “Here’s what this is really about: in Victoria, we pay workers properly and some people don’t like that.” The spokesperson emphasized the government’s commitment to ensuring fair pay for workers engaged in dangerous and skilled jobs.
On the opposition front, Jess Wilson, the Opposition Leader, has proposed terms of reference for a Royal Commission into CFMEU misconduct, should her party gain power. This inquiry would focus on the “nature, extent, and impact of misconduct involving the CFMEU on Victorian Government projects,” particularly examining the financial implications for taxpayers and the connections between CFMEU activities and organised crime.
As these developments unfold, the scrutiny on the CFMEU and its operations in Victoria is expected to intensify, with ongoing investigations looking to bring clarity and accountability to the allegations that have emerged.
