Victorian Premier Rejects Royal Commission into CFMEU Corruption Allegations
Premier Jacinta Allan has firmly rejected calls for a royal commission into alleged corruption within the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU) in Victoria, which a damning report claims has caused permanent damage to the state's economy. The premier also cast doubt on the report's assertion that major project budget blowouts due to CFMEU misconduct have cost Victorian taxpayers a staggering $15 billion.
Explosive Report Details Union Misconduct and Criminal Infiltration
In her first media appearance since the release of the explosive report entitled Rotting from the Top, Premier Allan addressed the allegations that the CFMEU's Victorian branch, under former boss John Setka, operated as a crime syndicate while the state government failed to intervene. The report, authored by barrister Geoffrey Watson SC, paints a disturbing picture of union activities, alleging that worksites were used as drug distribution hubs, killers were given high-paying jobs, and strippers performed for night crews after organised crime infiltrated the union.
Mr Watson, when questioned at Queensland's inquiry into construction industry misconduct, defended his claim that the damage to Victoria's economy from CFMEU corruption could be everlasting, stating it was not hyperbolic. The report specifically named former union officials John Setka and Joe Myles, along with colourful Victorian figure Mick Gatto, as malign influences, with Mr Watson writing that Gatto's criminal conduct had damaged the building industry and the Victorian economy, potentially permanently.
Premier's Response and Government Actions
Premier Allan, who served as the minister responsible for transport infrastructure during Setka's CFMEU reign, apologised to Victoria's construction workers for the 'rotten culture that was in place,' describing some of the report's allegations as absolutely sickening. However, she stood firm against demands for a royal commission or a referral to the state corruption watchdog, arguing that the government had taken immediate action upon learning of the misconduct allegations in mid-2024.
'I want to make it absolutely clear that I and my government have zero tolerance for this alleged behaviour,' Premier Allan declared during a tense media conference. 'Indeed, during my time as minister when allegations were raised with me, I referred allegations to the relevant authorities.' She insisted that all 'bad actors' within the CFMEU had been removed and dismissed the report's $15 billion cost estimate, citing the CFMEU administrator's view that it was not well tested or properly founded.
Report Fallout and Political Repercussions
The controversy deepened as it was revealed that pages of the report, perceived as highly damaging to the Victorian Labor government, were initially redacted at the request of CFMEU administrator Mark Irving KC. These deleted sections were later unearthed and published by the Queensland commission of inquiry, prompting Victorian shadow attorney-general James Newbury to write to the state corruption watchdog requesting an urgent investigation into the findings.
In his letter, Mr Newbury described the corruption uncovered as 'of a scale that makes it the worst seen in our country's history.' Meanwhile, the fallout continued with the arrest of ex-CFMEU official and bikie Joel Leavitt, 32, along with two other men, over allegations of a $663,000 demand at a west Melbourne property. Mr Leavitt, a patched Bandidos member, was labelled a 'brutal criminal with a bad criminal record' in Mr Watson's report.
The report also linked Victoria's $100 billion Big Build under former Premier Daniel Andrews to the CFMEU's descent into a 'violent, hateful and greedy rabble,' accusing the state government of turning a blind eye for years. As the debate over accountability and transparency intensifies, Premier Allan's refusal to endorse a royal commission sets the stage for ongoing political and legal scrutiny into union practices and their economic impact on Victoria.
