Explosive Report Alleges Victorian Government Ignored $15bn CFMEU Corruption in Major Projects
Victoria's attorney general, Sonya Kilkenny, has launched a blistering attack on integrity expert Geoffrey Watson SC, following his claim that corruption within the Construction, Forestry and Maritime Employees Union (CFMEU) has cost taxpayers at least $15 billion. The allegation stems from redacted chapters of Watson's Rotting from the Top report, commissioned by CFMEU administrator Mark Irving KC and presented during a recent Queensland inquiry into the union.
Watson's $15bn Estimate Based on Industry Sources and Project Scale
Watson, a barrister and director of the Centre for Public Integrity, described the $15 billion figure as a "very rough" estimate derived from consultations with highly qualified stakeholders. With the Big Build infrastructure program valued at approximately $100 billion, industry sources indicated that cost blowouts linked to CFMEU conduct ranged between 10% and 30%. Watson settled on a 15% estimate, calling it "not unreasonable" and "probably conservative."
"From there the maths is simple – the leadership of the CFMEU has cost the Victorian taxpayer something like $15bn," the redacted chapter states. It further alleges that much of this sum has flowed directly into the hands of criminals and organized crime gangs.
Government Accused of Turning a Blind Eye to Infiltration
In another redacted section, Watson asserts that the Victorian government "knew and had a duty to know" that corrupt union and underworld figures had infiltrated the Big Build but chose to do "nothing about it." These chapters were excluded from the final report by Irving, whose spokesperson said he was not satisfied they were well-founded or properly tested.
Kilkenny and Carbines Launch Personal Attacks on Watson
Attorney General Kilkenny condemned the $15 billion claim as "reckless" and "unfounded," emphasizing that lawyers must distinguish between allegation and proof. "The line between fact and allegation has now been blurred. Mark Irving saw that, lawyers see that and we see that," she stated.
Police Minister Anthony Carbines joined the fray, accusing Watson of providing "lots of florid ramblings … but not a lot of evidence" and urging him to submit any evidence to Victoria police rather than seeking headlines.
Watson Fires Back, Calling Ministerial Comments "Inappropriate"
Watson responded forcefully, stating that while he had "deliberately refrained from speaking publicly" about the report, the ministers' interventions were "so inappropriate" he felt compelled to reply. "They shouldn't have said that. It crossed a line," he told Guardian Australia. "I don't know why they are attacking me personally rather than addressing the genuine problems in Victoria."
Opposition Demands Sackings Amid Corruption Allegations
Shadow Attorney General James Newbury seized on the controversy, declaring that Kilkenny and Carbines "aren't fit for their jobs and deserve to be sacked." He accused the Victorian government of being "so rotten" that it attacks anti-corruption experts instead of confronting systemic issues. "No wonder corruption thrives in Victoria," Newbury concluded.
The escalating conflict underscores deep tensions over accountability and transparency in Victoria's handling of major infrastructure projects, with billions in taxpayer funds at stake and allegations of criminal infiltration casting a long shadow over the state's political landscape.
