Corruption Concerns Plague Australian Infrastructure Projects, Regulator Calls for Leadership
A growing wave of allegations regarding crime and corruption is impacting Australian government-funded infrastructure projects, particularly in Victoria. Recent statements from a key regulator reveal deep frustration with the lack of proactive measures to address the issues, and a call for major contractors to take greater obligation.
The regulator, whose comments were reported following a briefing, stated that a significant portion of the alleged misconduct falls outside their direct jurisdiction and has been referred to other relevant agencies, including law enforcement and government bodies. While acknowledging that many allegations remain unproven, they emphasized the importance of these reports in highlighting the scale of the problem. specifically, the regulator noted that state and federal infrastructure projects are frequently cited in these allegations.
Data presented indicates a disproportionate number of reported issues are linked to victoria. Of the 95 reports identifying specific projects receiving government funding, over 45% relate to projects within the state. This pattern aligns with observations of alleged illegal conduct on government-funded projects nationwide.
Industry insiders – including union representatives, law enforcement officials, and building company figures – share the regulator’s concerns.While acknowledging increased efforts by police in Victoria and, to a lesser extent, New South Wales, they believe governments in both states are hesitant to fully confront the deeply rooted corruption within major, taxpayer-funded projects.
The Victorian government, led by Premier Allan, has resisted calls for a broad, royal commission-style inquiry, despite the significant number of allegations connected to its “Big Build” infrastructure program. In contrast, Queensland is currently undertaking such an inquiry.The Victorian Liberals have pledged to launch a royal commission into the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU)’s conduct and influence on the “Big build” if elected in the next state election.
The regulator’s strongest criticism was directed at major government contractors, often referred to as ”tier-one” builders. While refraining from naming specific companies, reports have previously linked firms like webuild, Lend Lease, Laing O’Rourke, John Holland, and Acciona to allegations of enabling or inadequately addressing union corruption and organized crime infiltration.
Specifically, Webuild faces accusations of overlooking alleged corruption on the Western Sydney Airport metro project in New South Wales. in Victoria, multiple tier-one companies working on rail level-crossing projects are alleged to have conceded to union demands to employ members of outlaw motorcycle gangs.
The regulator expressed disappointment with the lack of consistent leadership from these large companies, stating that in 25 years of experience, they have not observed a proactive effort to resolve the long-standing issues. They emphasized the responsibility of these companies, given their size and resources, to actively contribute to solutions rather than relying on external action.
Victorian Transport Infrastructure Minister Gabrielle Williams, speaking prior to the regulator’s remarks, defended the government’s efforts to ensure safe work sites and adherence to community standards, stating that a complete approach is underway both in Victoria and nationally, and that progress will take time.
