Ben Carroll Locks in Royal Commission on Construction Corruption August 20

Victorian Premier Ben Carroll will finalise a royal commission into construction sector corruption at a cabinet meeting on Thursday, August 20, then advise the state governor to issue letters patent establishing the inquiry. The move follows two years of investigative reporting by The Age, The Australian Financial Review and 60 Minutes on organised crime, violence and corruption in Victoria’s Big Build infrastructure projects. A commissioner will be appointed to lead the process.

What the investigation will cover

The royal commission will examine allegations of organised criminal infiltration of taxpayer-funded construction projects, violence and drug use on work sites, and payments to so-called fixers including underworld figure Mick Gatto. The investigation, known as Building Bad, has also uncovered concerns that the government presided over a culture where builders were encouraged to give in to demands from the increasingly lawless Construction, Forestry and Maritime Employees Union (CFMEU). As recently as August 19, police began investigating the former national vice-president of the Mongols outlaw bikie gang over allegations he offered inducements to CFMEU officials in return for their support of his business.

Why Carroll moved faster than his predecessor

Jacinta Allan, Carroll’s predecessor, refused to set up the inquiry despite pressure from integrity advocates, the opposition and her own MPs. Allan had been infrastructure minister responsible for the Big Build before becoming premier. Carroll promised to establish the royal commission at the end of July as his first act after becoming premier, and is now delivering on that commitment with a cabinet decision on August 20.

Expanding powers for anti-corruption agencies

Carroll has also committed to expanding the definition of corruption before the Victorian election in November. The changes will broaden the jurisdiction of the Independent Broad-based Anti-corruption Commission (IBAC) to investigate the spending of public money by private contractors and subcontractors. The Victorian parliament will sit for additional days to accommodate the IBAC legislation and to establish a special prosecutor to work in parallel with the royal commission’s investigation.

What happens next

A commissioner will be appointed to lead the royal commission, with further details to be announced at a press conference on August 20. Carroll said he is working on broad terms of reference to shine a light on what occurred and is ensuring lasting change through the establishment of an office for a special prosecutor. The special minister of state, Ingrid Stitt, said her department had been working to bring forward follow-the-dollar powers allowing IBAC to investigate spending of public money by private contractors and subcontractors.

Final Thoughts

Carroll’s royal commission represents a significant shift from his predecessor’s resistance to the inquiry. Combined with expanded IBAC powers and a special prosecutor, the investigation signals a harder line on construction sector corruption ahead of November’s state election.

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