The royal commission into alleged corruption in Victoria’s Big Build is due to begin. How will it work?
The royal commission into allegations of corruption on Victorian government construction sites will hold an opening hearing in Melbourne on Wednesday.
The inquiry was the first commitment made by the new premier, Ben Carroll, when he became Labor leader in July, after ousting Jacinta Allan, who had resisted calls for one. In August, Carroll released the terms of reference and appointed Chris Kourakis, the former chief justice of South Australia, to lead the inquiry, while acknowledging there had been “grift”, “thuggery” and “violence” on taxpayer-funded construction sites.
Here’s what we know about the inquiry.
How did the royal commission come about?
Officially called the Royal Commission into the Integrity of Major Public and Civil Infrastructure Construction Projects in Victoria, the inquiry comes after persistent reporting by Nine newspapers of allegations of wrongdoing by the Construction, Forestry and Maritime Employees Union (CFMEU) and others connected to the Big Build – the Victorian government’s pipeline of more than 180 major road and rail projects.
The reporting began in 2024 and detailed how some of the highest-ranking bikie gang bosses had been parachuted into union delegate positions on the Big Build. The Victorian CFMEU boss, John Setka, resigned as a result, while the prime minister, Anthony Albanese, placed the union and all its state branches under administration in 2024 and the then Victorian premier Jacinta Allan suspended the Victorian construction branch from the state party.
The issue again gained prominence in February after the release of a report by Geoffrey Watson SC, a director of the Centre for Public Integrity, during a Queensland inquiry into the union. The report, commissioned by the administrator of the CFMEU, alleged $15bn might have been lost to wrongdoing on taxpayer-funded construction sites in Victoria.
“Much of that $15bn has been poured directly into the hands of criminals and organised crime gangs,” it read.
In July, Allan – who previously served as the minister for transport infrastructure overseeing the Big Build – admitted criminals had infiltrated government sites and apologised in an opinion piece in the Age.
But she rebuffed calls from Watson, integrity experts and her own MPs to hold a royal commission. This resistance led several Labor ministers to join a cross-factional group that urged Carroll to challenge Allan for the leadership. She stood down before a vote.
What will the royal commission investigate?
Under the terms of reference, the commission will investigate the extent to which “corruption, criminal conduct or serious misconduct” occurred on major Victorian projects by the CFMEU, construction companies, subcontractors, labour hire firms and others.
It will also examine whether government departments and project delivery agencies “adequately adhered” to their responsibilities in overseeing the projects.
The inquiry will consider whether measures could be taken to “recoup” taxpayer funds that were “misappropriated or received as a result of corruption, criminal conduct or serious misconduct”.
Kourakis has been given a $50m budget and coercive powers to compel the production of information, including cabinet documents and the attendance of witnesses.
Chris Young KC – who specialises in building and construction law – and Christopher Carr SC, have been appointed as counsel assisting.
They must report to the government by 20 August 2027.
What will the opening hearing entail?
The hearing is expected to be short and largely administrative, outlining the royal commission’s plan for the months ahead, including public hearings.
On its website, the royal commission said it was committed to transparency and the principles of open justice.
“Wherever appropriate, hearings will be conducted in public to ensure the community can observe the commission’s work,” the commission said.
The hearings – to be held in Melbourne magistrates court – will also be live streamed. Labor MPs are bracing for the prospect several will be held during the November state election campaign.
Will former premiers Jacinta Allan and Daniel Andrews be called?
While we are yet to see a witness list, Carroll in announcing the terms of reference said the commissioner would have the power to call anyone whose actions and knowledge were relevant to the matters under investigation.
“If he wants to hear from ministers, former ministers, senior officials, union leaders or company executives, he has the power to call them.”
Under questioning, Carroll confirmed “premiers and former premiers” could also be called.
What happens to the royal commission if the Coalition win government in November?
Guardian Australia understands it will continue but a future Coalition government would add two commissioners to join Kourakis - a former police officer with an organised crime background and an industrial relations expert.
It would also broaden its scope to explicitly investigate all trade unions, as well as political and financial incentives behind the Big Build. This could include examining the geographic spread of projects - including in marginal seats.
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