Recent allegations against the CFMEU (Construction, Forestry, Maritime, Mining and Energy Union) have sent shockwaves through Victoria's construction industry, spotlighting organized crime infiltration and corruption on massive government infrastructure projects. A series of investigations, including one led by prominent legal figure Geoffrey Watson, SC, has uncovered finance-driven connections between gangland figures and union insiders, with taxpayers potentially underwriting criminal activity.
The CFMEU is reeling from claims made by Geoffrey Watson, who has alleged the Victorian Labor government is effectively running what resembles a protection racket by allowing extensive gang influence over the Big Build infrastructure scheme. His assertions come on the heels of intense scrutiny following police investigations, the appointment of union administrators, and the sacking of influential union figures.
Substantial allegations have emerged, stating the involvement of "baseball bat-wielding violent people" on Big Build sites, where complaints by women have allegedly led to harassment and blacklisting. These revelations echo broader concerns surrounding the construction sector, reportedly placing it at risk of organized crime permeation, which has flourished unchecked.
On March 13, 2025, the federal police launched raids as part of Operation Rye targeting notable figures linked to organized crime. One prominent target was Mick Gatto's accountant, Charles Pellegrino, where agents sought evidence of criminal activity tied to construction payments. These efforts reflect heightened tensions as evidence continues to mount linking union officials to corrupt financial transactions.
Watson was particularly scathing of the Victorian government’s handling of the CFMEU scandal and the Wilson inquiry, which failed to produce specific instances of corruption or accountability among senior officials. "It needed actually to go inside the doors of the senior bureaucrats and directly to the ministerial offices," he asserted, expressing concern over the apparent indifference to more significant issues at play.
Watson noted, “Senior people in the bureaucracy know about it, because I’ve received information indicating they were directly told about it.” He conveyed frustration over how the inquiry's limited scope allowed gangland figures to continue profiting from government contracts.
A central thread of this scandal is the struggle women face within the male-dominated construction industry. CFMEU national secretary Zach Smith acknowledged the pervasive issues of violence, stating, “Violence against women is completely unacceptable. Everyone has a right to be safe at work.” Smith also emphasized the need for the union to be accountable and supportive of its vulnerable members, pledging to fight for equality and justice.
Lisa Zanatta, who has spent decades advocating for women within the construction sector, echoed these sentiments, expressing her commitment to challenging cultural power dynamics suppressing women's voices. "My work largely involves breaking down barriers... those power structures make it far too difficult for women to feel safe and respected," she stated, highlighting the necessity for systemic change.
The CFMEU's issues are compounded by claims of gangland figures being paid to facilitate union-related problems. Reports suggest these payments have ranged from $30,000 to $600,000, with the incriminated figures experiencing little to no accountability for their actions. Watson’s investigations have indicated gangland associates have infiltrated various construction sites, taking advantage of government projects for profit.
The inquiry uncovered how some public contracts forcibly employ gang-affiliated individuals, raising serious ethical questions about government oversight. For example, Shannon Tibos, connected to the Rebels bikie gang, received substantial sums of money on construction projects, often without being present for work. Reports indicate he earned between $4,000 and $11,000 weekly, demonstrating how organized crime can manipulate construction contracts.
While attempting reforms, the state government claims to have introduced anti-bikie-association laws and upheld inquiries to address these issues. Yet, critics argue the measures are insufficient, pointing to the stalled results of years-long investigations and limited action against senior bureaucrats allegedly involved.
Victorian Premier Jacinta Allan's government stands accused of failing to safeguard public integrity, as accusations of cover-ups linger. Watson's investigations have underscored potential negligence within her administration, noting, “Political solutions haven’t been put in place. Nobody’s done anything to try and stop it.”
Watson argued substantial evidence suggests taxpayer funds are being misappropriated to support organized crime, causing distress within the construction sector. With gang figures exploiting regulatory gaps, law enforcement has faced challenges addressing these entrenched issues, recognizing existing bureaucratic frameworks may be inadequate to combat the problem effectively.
Even amid increased scrutiny, reports of gangland involvement have been met with skepticism by those embroiled in the inquiry. Former police officer Peter De Santo highlighted the failure of authorities over the last decade to act on warnings about bikie infiltration, deeming the current state of the industry as reflective of years of neglect.
Watson has cautioned against complacency, urging for meaningful reforms to tackle the persisting criminal influence, which he describes as intersecting with taxpayer-funded initiatives and sowing corruption throughout the sector. The identification of additional gang figures involved, as well as the links to on-site violence, only elevates the urgency for substantial changes.
Gatto and his associates have been actively engaged with companies to sort out union-related issues, with Watson estimating criminals generating up to $10,000 weekly through jobs requiring minimal actual effort. This exploitation emphasizes the demand for thorough investigations leading to actionable policies aimed at curbing the power of organized crime.
Although there have been some operational scrubs, critics express doubts about whether there will be any genuine accountability for those entangled within the CFMEU. They contend the claims against senior officials and criminal links suggest deeply rooted issues will persist, leading to continued struggles for greater integrity and safety within the construction space.
Calls for reform and transparency echo from various sectors, rallying cries advocating for constructive government action to confront the challenges posed by organized crime within the construction industry. Without adequate scrutiny and substantial policy change, existing patterns of impunity may allow the menace to thrive unchecked, compounded by the fragile state of the CFMEU.