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Big Build royal commission as it happened: Opening hearing lays foundations for probe into alleged corruption

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Source :  the age

Secret hearings have already been held by Victoria’s royal commission into Big Build corruption and public hearings will run in the middle of the state election campaign, the first day of the inquiry has heard.

The commission was already presented with evidence on Wednesday that former premier Jacinta Allan was warned three years ago about organised crime and serious misconduct.

Commissioner Chris Kourakis takes his seat at the Melbourne Magistrates’ Court on Wednesday.Joe Armao

Royal Commissioner Chris Kourakis also promised to leave no stone unturned in the inquiry and fired a warning at carpetbaggers who corrupt the construction industry through bribery and extortion.

Kourakis appeared at Melbourne Magistrates Court of Victoria to outline the intention of the royal commission, how it would work, and to hear opening submissions from lawyers assisting the inquiry.

As part of these submissions, counsel assisting the commission, Chris Young, KC, tendered a briefing addressed to Allan, who was then-infrastructure minister, dated June 21, 2023.

It was the same document this masthead revealed in July had warned Allan that the Big Build she was overseeing was being taken over by a lawless CFMEU, that this could cause major cost blowouts, and bikies and criminals had reportedly infiltrated taxpayer-funded projects.

Chris Young, KC, said the commission could be the impetus for generational reform in the industry.Joe Armao

Young noted the space for Allan’s signature is blank, and a spokesperson for the former premier said she was not aware of this brief when The Age reported it.

“Whether, when, and how its contents reach the former premier are questions this commission will examine, and the former premier will have every opportunity to respond,” he said.

A second document tabled on Wednesday was another ministerial briefing for Allan penned on the same day in July 2023. It was written by the same four senior government bureaucrats, but this was signed by the minister.

Young said the core message of the document was that the state’s major transport infrastructure authority had received anecdotal evidence of criminal elements becoming involved in government projects.

This briefing said that informal investigations of these reports did not reveal widespread criminal activity, but it was agreed the anecdotal matters would be referred to Victoria Police.

The document also appears to mention the first tabled document Allan denies having knowledge of.

It said related concerns about industrial relations and project costs were outlined in another briefing to the minister which should be “read in conjunction with this briefing”.

“There are no immediate financial implications. However, a possible increase in concerning behaviour has the potential to significantly impact public costs and schedule,” Young said while reading from the document.

A third document tabled to the commission on Wednesday was a letter from Allan, dated June 23, 2023, to then Victoria Police Commissioner Shane Patton informing him of the warnings she had received about criminal behaviour.

She said she understood the department’s own general counsel had referred these to police but felt the need to address the issue herself as well.

“Given that this issue has been raised with me and the potential seriousness of possible criminal activity at work sites operated by contractor providers on major infrastructure projects, I feel duty bound to also raise this matter directly with you,” Young read from the letter.

During Wednesday’s hearing, it was revealed the commission had already held secret hearings as it sought information to build its case.

In his opening remarks, Kourakis promised to leave no stone unturned as part of the royal commission. He said this may mean further private hearings are required, but public disclosure would always be prioritised.

The entrance to the courtroom where the opening hearing for the Big Build royal commission took place on Wednesday.Joe Armao

There will be two blocks of public hearings before the end of 2026, and the first will take place in November during the state election campaign.

Kourakis said Victorians had debated for years about the projects within the Big Build and whether they met their goals, but he expected many people would agree on the obligation to protect taxpayer investments and ensure positions were not abused.

Thanks for joining us on the first day of the Big Build royal commission.

Our live blog has now concluded, but we’ll be back when further hearings take place later this year.

See you then.

Secret hearings have already been held by Victoria’s royal commission into Big Build corruption and public hearings will run in the middle of the state election campaign, the first day of the inquiry has heard.

The commission was already presented with evidence on Wednesday that former premier Jacinta Allan was warned three years ago about organised crime and serious misconduct.

Commissioner Chris Kourakis takes his seat at the Melbourne Magistrates’ Court on Wednesday.Joe Armao

Royal Commissioner Chris Kourakis also promised to leave no stone unturned in the inquiry and fired a warning at carpetbaggers who corrupt the construction industry through bribery and extortion.

Kourakis appeared at Melbourne Magistrates Court of Victoria to outline the intention of the royal commission, how it would work, and to hear opening submissions from lawyers assisting the inquiry.

Commissioner Chris Kourakis also revealed today that he has already made two grants of leave for people to appear before his inquiry.

This means the commission has permitted a person or organisation to participate in a hearing, including by making submissions, questioning witnesses or otherwise assisting the commission.

“The commission has already granted unconditional leave to appear to the Victorian Infrastructure Delivery Authority and to the administrator of the CFMEU,” Kourakis said.

CFMEU chief Michael Crosby.Peter Rae

VIDA is currently led by interim director-general Duncan Elliott after Kevin Devlin became interim chief executive of the Suburban Rail Loop Authority earlier this year.

Michael Crosby is now the administrator of the CFMEU after Mark Irving departed the role in April.

The Albanese government’s abolition of the controversial national construction industry watchdog will be looked at as part of Victoria’s royal commission into the building sector.

Counsel assisting the commission, Chris Young, KC, also pointed out the Victorian Code of Practice for the Building and Construction Industry was dismantled during the period that the Big Build royal commission will examine.

Chris Young, KC, (centre) leaves Melbourne Magistrates’ Court after the Big Build royal commission’s first hearing on Wednesday.Joe Armao

“Taken together, these features may have created incentives for some to engage in corruption, criminal conduct, or serious misconduct; for others to tolerate it, and for its cost to be hidden inside the ordinary price of building,” Young said.

“Whether that happened is a matter for the evidence.”

Counsel assisting the commission, Chris Young, KC, took time in his opening statement to detail the scope of the Big Build and infrastructure projects the commission will investigate.

The $26 billion North East Link, the $13.5 billion Metro Tunnel, the $10.2 billion West Gate Tunnel, and the $15 billion Level Crossing Removal Project will be among those examined, Young said.

An aerial view of construction for the North East Link.Joe Armao

“The total value of all the projects nears $150 billion,” he added.

Different ministers were responsible for different projects, but Young singled out the Victorian Infrastructure Delivery Authority (VIDA) within the Department of Transport and Planning as a key responsible authority.

The other counsel assisting the commission, Christopher Carr, SC, used his opening address to explain how the inquiry will try to rebuild trust in the integrity of the major construction sector in Victoria.

Two blocks of public hearings will be held before the end of the year, he said, the first of which will conclude in mid-November.

Christopher Carr, SC.Joe Armao

“The task of this commission is a daunting one,” Carr said.

“The allegations are grave, and the scope of the investigations required by the terms of reference enormous. However, the public can be assured that this commission will be unstinting in its examination of the conduct of all those involved in the events, the subject of this commission, and in its recommendations as to how the scourge that is alleged to have taken hold of the construction industry in this state can be eradicated.”

Chris Young, KC, says the commission’s first hearing periods will occur amid the upcoming state election.

“The commission’s work will not stop for the election, and it will not be shaped by it,” he said.

“Hearings will be scheduled according to the needs of the inquiry and fairness to those involved.”

Counsel assisting the commission, Chris Young, KC, has tendered the first document into evidence for the royal commission.

It is a briefing to the then-minister for transport infrastructure, Jacinta Allan, dated June 21, 2023.

In July this year, this masthead revealed the document warned Allan that the Big Build she was overseeing was being taken over by a lawless CFMEU, that this could cause major cost blowouts, and bikies and criminals had reportedly infiltrated taxpayer-funded projects.

Young noted the space for Allan’s signature is blank, and a spokesperson for the former premier said she was not aware of this brief.

“Whether, when, and how its contents reach the former premier are questions this commission will examine, and the former premier will have every opportunity to respond,” Young said.

Counsel assisting the commission, Chris Young, KC, has used his opening statement to address seven key issues.

Chris Young, KC, speaks on Wednesday.Joe Armao

First, he spoke about why this royal commission matters to Victorians:

The allegations of corruption, criminal conduct, and serious misconduct in relation to major construction projects in Victoria are serious. The allegations about what was done and what was not done reach from the sheds at work sites to union offices, to boardrooms, government departments, and to ministerial offices.”

Second, he spoke about what the commission is, and what it is not:

Chris Kourakis has used his opening remarks to explain this royal commission’s purpose and warned those who had exploited Victoria’s massive infrastructure investments to co-operate.

“There can be no tolerance at all for the carpetbaggers who corrupt an industry through extortion and bribery, whatever euphemisms they may employ to hide what they really do,” Kourakis said.

Chris Kourakis.Joe Armao

“There should be no place in government or the industry or on its fringes for those persons whose moral compass malfunctions.”

Kourakis said Victorians had heard “for some years now” about allegations related to the Big Build and had debated whether those projects have met the objectives.

“I assure the people of Victoria and warn all people who have done wrong, that the commission will leave no stone unturned in search for whatever is hidden, or whomever lurks underneath it,” he concluded.

“Anyone who has an ambition to remain in the industry will be better served by early voluntary co-operation and disclosures to the commission rather than by waiting to be found out.”