Victoria’s multibillion-dollar transport construction program is facing renewed scrutiny as allegations of organised crime, intimidation and union-linked corruption continue to dominate the state political debate ahead of the November election.
The controversy centres on the state government’s “Big Build”, a program covering more than 180 infrastructure projects, including the Metro Tunnel, level crossing removals, the Suburban Rail Loop and regional rail upgrades. The works have been promoted for years as a generational reshaping of Victoria’s transport network, but the political focus has shifted sharply to what authorities, investigators and critics say happened on some construction sites.
Allegations focus on criminal infiltration
Recent reporting and investigative material have alleged that underworld figures and bikie-linked operators gained influence or access to lucrative construction work, including through parts of the Construction, Forestry and Maritime Employees Union. The allegations include extortion, violence, intimidation, “ghost shifts”, nepotism and inflated project costs tied to corrupt labour practices.
The claims have placed pressure on Premier Jacinta Allan, who previously held the transport infrastructure portfolio while major Big Build projects were underway. Allan has rejected calls for a royal commission, saying allegations of criminality should be handled by police and existing regulators. She has also said there is no place for criminal conduct on worksites and has pointed to measures including stronger police powers, construction licence cancellations and mandatory reporting requirements for companies on government projects.
Victoria Police have laid more than 90 criminal charges connected to construction sector misconduct, according to statements cited in public debate. The state’s Labour Hire Authority has also cancelled licences for 164 firms, part of a broader regulatory response after the CFMEU’s construction division was placed into administration.
Cost blowouts under political spotlight
The financial dimension of the scandal has become a central point of contention. The Victorian government has attributed major project cost pressures to inflation, supply chain disruption and rising labour costs. Critics argue those explanations do not fully account for the scale of budget increases across major works.
Geoffrey Watson SC, who investigated allegations concerning the CFMEU during the John Setka era, has argued that corruption and criminal influence added a significant premium to taxpayer-funded construction. His report, titled “Rotting from the Top”, pointed to the Big Build as a key source of opportunity for misconduct once large sums of public money began flowing through the sector.
Watson has estimated that wrongdoing may have cost taxpayers billions of dollars. The Allan government has disputed elements of that assessment and questioned the methodology behind some figures, but the broader issue has continued to intensify as more details have emerged through media investigations and political scrutiny.
Calls grow for a royal commission
The opposition has sought to frame the controversy as one of Victoria’s largest integrity scandals and has promised a royal commission if elected. Former integrity officials, including former Victorian ombudsman Deborah Glass and former IBAC head Robert Redlich, have also argued that a royal commission is needed to establish what was known, when it was known and how corruption was able to take hold.
Allan has maintained that the most appropriate path is for police and regulators to pursue specific allegations. In public comments, she has acknowledged that criminals operated on some construction sites and described violence, intimidation and organised criminal behaviour as unacceptable.
The unanswered questions now reach beyond individual worksites. They go to the oversight of public procurement, the relationship between government, contractors and unions, and the safeguards around one of the most expensive infrastructure programs in the country. With the election approaching, the Big Build remains both a record of completed transport projects and a test of public confidence in how Victoria manages major public works.
