Source : the age
Premier Ben Carroll’s promised reforms to give the state’s peak anti-corruption body greater reach and powers are at risk of collapse following a proposed last-minute change that would prevent IBAC from investigating some allegations relating to Victoria’s Big Build sites.
Both the Coalition and the Greens have threatened to withdraw their support for Labor’s proposed legislation, which is set to be introduced into parliament on Tuesday, after the government confirmed its law change would declare any allegations IBAC had already dealt with under its old powers off limits.
The carve-out includes allegations former premier Jacinta Allan referred to IBAC more than two years ago after a joint investigation by The Age, The Australian Financial Review and 60 Minutes revealed organised crime had infiltrated government-funded major building projects.
The proposed legislation, which gives IBAC follow-the-money powers and a broader definition of corruption to launch investigations, prevents it from applying the broader powers and jurisdiction to matters it has already investigated, decided not to investigate or referred to another integrity agency.
The government believes the new Kourakis royal commission is the primary body for investigating allegations of corruption and misconduct associated with the Big Build, and that the commission will work closely with a special prosecutor, IBAC and Victoria Police to ensure all claims of serious wrongdoing are examined.
On Monday night, shadow attorney-general James Newbury described the move as a “shameful con” and an eleventh-hour manoeuvre before parliament is prorogued ahead of November’s state election.
“Ben Carroll and Labor are shamefully trying to keep covered up the worst corruption scandal in our state’s history,” Newbury said.
“Labor has confirmed their proposed new powers won’t let IBAC revisit old corruption allegations it has dismissed, referred elsewhere or finished investigating.
“Victorians deserve to know the extent of corruption on the Big Build. IBAC must not be blocked from that work. What a shameful con from an end of days government.”
Special Minister of State Ingrid Stitt rejected the criticism.
“The Liberals are lying,” she said. “The royal commission will be able to investigate any allegations of crime, corruption and serious misconduct on Big Build projects.
“We’re fast-tracking the new laws, so IBAC has the follow-the-money powers it needs to uncover corruption this year, not in 2027.”
An opposition party room meeting scheduled for Tuesday morning is expected to withdraw support for the bill unless it is substantially amended.
Greens leader Ellen Sandell said the legislation needed to provide greater scope for IBAC to conduct public examinations of witnesses, including parliamentarians.
“The Greens dragged Labor kicking and screaming to finally strengthen IBAC, but as per usual with Labor, they’ve done it in a way that has big carve-outs to protect themselves and leave Victorians in the dark,” Sandell said.
Allan wrote to IBAC in July 2024, a day after the first revelations of the Building Bad investigation were published by this masthead, urging the anti-corruption body to investigate the claims.
“I am concerned to ensure that any allegations of serious corruption that are within the remit of IBAC are identified, investigated and appropriate action taken by IBAC,” she wrote.
In February this year, it was revealed that IBAC had assessed the premier’s referral and found it to be outside its jurisdiction at the time.
At the time, IBAC was still assessing a separate referral from Newbury about the contents of a report from anti-corruption advocate Geoffrey Watson, SC, which outlined serious misconduct in the CFMEU, the union which under the Andrews and Allan governments established an industrial monopoly over Big Build projects.
In July, Newbury made a further referral over allegations that state government officials told builders to cut a deal with the CFMEU following a dispute on a key level crossing removal site.
The status of Newbury’s referrals is not known. IBAC does not typically confirm or deny what matters it is investigating. It responded to media requests about Allan’s referral only after the former premier publicly released her letter.
The proposed changes to IBAC’s laws would allow the agency to use its new powers and jurisdiction on matters it is currently investigating, as well as any future investigations.
The government legislation would expand IBAC’s working definition of corrupt conduct beyond its current requirement that it must constitute a criminal offence punishable by five years’ jail. This jurisdictional limitation, which has been criticised by successive IBAC commissions, is more narrow than that used by any other peak anti-corruption body in Australia.
The definition of corruption would be broadened to include any offence or serious disciplinary matter. This covers a much wider range of activity – such as misconduct and major breaches of ministerial and local government codes of conduct – and would enable IBAC to investigate what its former commissioner Robert Redlich described as “grey corruption”.
Redlich, the Centre for Public Integrity, Transparency International Australia, former ombudsman Deborah Glass and other integrity advocates have repeatedly called for IBAC’s working definition of corruption to be brought into line with the NSW Independent Commission Against Corruption and the National Anti-Corruption Commission.
IBAC’s proposed follow-the-money powers, would allow it to pursue investigations beyond major government contractors, into subcontractors and labour hire firms who ultimately receive taxpayer funds.
Since replacing Allan, Carroll has staked his nascent premiership on restoring government integrity, promising to bring forward greater powers for IBAC and establish a royal commission into Big Build corruption on the first day of his leadership.
Alongside the proposed IBAC legislation, the government will this week introduce into parliament proposed legislation to establish a special prosecutor’s office to work in tandem with the royal commission.
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Chip Le Grand leads our state politics reporting team. He previously served as the paper’s chief reporter and is a journalist of 30 years’ experience.Connect via email.
