A strong Royal Commission must emerge from the rubble of leadership change
Eventually, the army of experts banging the drum for a Royal Commission became so loud, Labor could not ignore it.
Former Premier Jacinta Allan’s reluctance to allow a Royal Commission into corruption and organised crime in Victoria’s construction sector made her leadership untenable. New Premier Ben Carroll has committed to a Royal Commission into Victoria’s $100 billion Big Build.
The question is now, what will it do, investigate, and achieve?
Royal Commissions in Victoria have strong coercive powers. Under the Inquiries Act 2014 (Vic), this includes the power to compel witnesses to attend hearings, demand the production of documents, and take evidence under oath. They can also execute search warrants and seize important evidence.
As we’ve seen with recent Commonwealth Royal Commissions into both Robodebt and Anti-Semitism, they also shine a giant spotlight on issues of public importance. The holding of public hearings encourages others to bring evidence and wrongdoing to light helping build trust with the community. We know that Transparency is the best form of disinfectant.
Premier Carroll must ensure that the Royal Commission has a broad scope. Emerging from the rubble of the leadership change, this is key for the government to have any credibility with voters.
The Royal Commission’s term of reference must not only examine the infiltration of organised crime gangs and criminals into the CFMEU and the construction sector, but also the relationship and influence between the government, the CFMEU and criminal actors. It must examine the role of labour hire companies, union Enterprise Bargaining Agreements, construction companies and outlaw motorcycle gangs.
A key question is to what extent did the Allan Government choose to look the other way, or even enable, the blatant corruption and wrongdoing that has plagued the Big Build.
The Royal Commission must also ensure the full protection for whistleblowers and witnesses. As the outstanding reporting by Nine’s Nick McKenzie shows, people speaking out are the best form of intelligence in bringing corruption to light. People coming forward must be protected from retaliation and redress.
Importantly, it must examine the weakness in Victoria’s integrity safeguards, such as IBAC and the Victorian police, and laws that allowed such serious and systemic corruption to take hold. In recent times, the Robodebt Royal Commission and the Banking Royal Commission led to important changes in the Commonwealth Public Sector and how the financial sector is regulated to limit harm to consumers.
History also shows how Royal Commissions and inquiries into corruption can lead to systemic reforms to combat corruption and organised crime.
Back in the 1980s, rampant violence, criminality, investigative media reports, and whistleblowers brought to light serious corruption involving the now defunct Painters and Dockers union. Then-Prime Minister, Malcom Fraser responded by launching the Royal Commission into the Activities of the Federated Ship Painters and Dockers Union.
Chaired by lawyer Frank Costigan QC, who would later go on to be chair of Transparency International Australia, the commission uncovered up to 15 murders that member of the Painters and Dockers Union were involved in or associated with. Significantly, the broad scope and powers also helped uncovered massive white-collar tax fraud. Known as “bottom of the harbour” schemes, this prompted major legal and financial reforms to close tax loopholes and combat white collar crime.
The inquiry also contributed to the successful prosecution of more than 600 people and put forward strong recommendations to prevent, detect and combat corruption in the future. These included new laws to strip criminals of their assets and the development of National Criminal Agency, now known as the Australian Criminal Intelligence Commission, to investigate complex, multi-jurisdictional organised crime. Important reforms that help combat crime and corruption to this day.
In Queensland, the Fitzgerald Inquiry that ran from 1987 to 1989, into police and political corruption exposed systemic corruption involving the Queensland police, public service and their political masters. It also led to significant reforms that have rippled out from Queensland and across Australia. This included corrupt ministers and police being jailed, charges being laid, though dropped, against former Premier Bjelke-Petersen and the establishment of Queensland’s anti-corruption commission. It also recommended the establishment of the Electoral and Administrative Review Commission which paved the way for electoral reforms and new Freedom of Information Laws in Queensland.
Like a cancer, corruption has spread far and wide into Victoria’s construction sector. Alongside brining forward ‘follow the money’ powers and enlarging the scope of conduct IBAC can investigate, Victoria’s new leader must ensure that the Royal Commission has a broad scope and strongest possible powers to truly uncover what went wrong, who was responsible and what needs to change.
An edited version of this featured in the Australian Financial Review.
