Feb 16 • 14:00 UTC 🇦🇺 Australia Guardian Australia

The CFMEU has cost Victorian taxpayers $15bn, a corruption fighter claims. How did he reach that figure and what happens next?

A report alleges that the CFMEU's Victorian branch has caused taxpayers significant losses due to corruption, prompting increased scrutiny of the union and its leadership.

A recent report has alleged that the Victorian branch of the Construction, Forestry, Maritime and Energy Union (CFMEU) has potentially cost Victorian taxpayers up to $15 billion due to corrupt practices. The report, commissioned by the CFMEU administrator, delves into accusations that the union evolved from advocating for workers' rights to engaging in criminal activities. It cites notable figures within the union, especially John Setka, whose leadership is blamed for the union's transformation into what has been described as a 'crime syndicate.' The accusations point towards a systemic corruption problem that is claimed to be uniquely Victorian in nature.

The report, titled 'Rotting from the Top,' was put together by corruption fighter Watson and highlights the relationship between the CFMEU and organized crime, suggesting that the union fostered ties with underworld figures and bikie gangs. The implications of this report are significant for the current Victorian government, as it is expected to face parliamentary pressure over these allegations. With the context of the $100 billion infrastructure program known as the Big Build, which the Andrews Labor government initiated in 2015, the report raises uncomfortable questions about the conduct and oversight of state-funded projects and unions involved in them.

As the government prepares for an intense week in parliament, opinions on how to address the allegations are divided. Advocates for corruption reform are calling for immediate action to restore integrity within the union, while union leaders may resist the conclusions drawn in the report. The situation underscores broader issues of transparency and accountability in unions and public spending, with potential ramifications for the future of labor relations in Victoria and beyond.

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