Sunbury level crossing removal will kick off probe into Big Build corruption

The Big Build royal commission will begin their inquiry with the Gap Road level crossing removal, a project viewed as central to claims the Labor government helped corrupt union officials take over the state’s major projects.

A two-week block of hearings, starting on Monday, is expected to hear from about two dozen witnesses from the construction industry, inside government departments responsible for delivering the multibillion-dollar Big Build, and from the Victorian branch of the CFMEU.

Gap Road, in Sunbury, was allegedly pivotal to the construction union’s takeover of the Big Build, during which time it gained the power to say who worked on a site, including associates with alleged ties to outlaw motorcycle gangs.

The Gap Road project was covered by an Australian Workers Union enterprise agreement until June 2022, but following a work stoppage on June 6 and 7, a consortium including builders CPB and John Holland agreed to transfer control to the CFMEU. The construction union also insisted that its favoured labour hire firm, BK Labour, take over the contract.

This masthead has previously reported that state government officials allegedly pressured the consortium to cut a deal with the CFMEU, relaying a message from then transport minister Jacinta Allan.

Officials implied that a failure to do so could jeopardise their prospects of winning lucrative future projects such as Melbourne Airport Rail, according to sources who spoke to this masthead at the time.

Allan, Victorian premier from September 2023 until she resigned in July this year after losing the support of most of her parliamentary colleagues, has denied the claims.

The commission indicated on Friday that it will look at what led to the June stop work on the Gap Road project, a meeting at the CFMEU’s offices on June 7 after which work resumed, and the arrangements made following the meeting.

Gap Road project managers reportedly met with CFMEU leader Joe Myles, then the union’s top official on Big Build projects, who demanded BK Labour be installed on the project, as well as CFMEU health and safety representatives.

The inquiry will grill witnesses on “what the arrangements cost, who paid for them and what the state knew and did”, the commission said in a statement.

It will probe the appointment of health and safety representatives on the project, changes to labour hire and traffic management providers and any wider campaigns on traffic control on other Big Build projects – including what the state knew and did.

This masthead’s Building Bad investigation has reported representatives of CPB and John Holland warned government officials that switching coverage from the AWU to the CFMEU and its favoured labour hire company would add an extra $2 million to labour hire costs on the project.

BK Labour’s owner, Bernard Kearney, pleaded guilty in July to creating a false document to disguise the reason his business allegedly made several suspicious financial transactions. He was fined $3000 without a conviction.

Premier Ben Carroll called the royal commission in his first act after replacing Allan, who, along with former premier Daniel Andrews may be called as witnesses.

The Royal Commission into the Integrity of Major Public and Civil Infrastructure Construction Projects in Victoria, led by Commissioner Christopher Kourakis, was called following years of extensive reporting by this masthead into alleged corruption in the Victorian branch of the CFMEU, under the leadership of secretary John Setka, who resigned in 2024.

The reports detailed extensive links between the Victorian branch and notorious organised crime figures including Mick Gatto and Toby Mitchell.

Victoria’s Big Build has been the signature legacy of the Labor government over its 12 years in office, encompassing more than 70 level crossing removals, the construction of the Metro rail tunnel, the West Gate Tunnel and North East Link toll roads, at a combined cost of more than $100 billion.

In his report for the Queensland Commission of Inquiry into the CFMEU, leading anti-corruption barrister Geoffrey Watson, SC, estimated corruption on the Big Build cost Victorian taxpayers $15 billion.

“The big money generated by the Big Build was at the root of the problem in Victoria. The temptation created by the big money proved too great,” his report states.

Follow coverage of the Big Build royal commission live on The Age’s website on Monday.