Transparency International Australia Statement on Operation Lota
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.
Transparency International (TI) Australia welcomes the details of the NACC investigation and AFP charges laid against a renewable energy company manager for allegedly bribing a Commonwealth Official with $20,000 in cash.
Operation Lota was a joint investigation by the Queensland Police Service, the National Anti-Corruption Commission and the Australian Federal Police.
This highlights the success of joint investigations and the increasing risk of corruption facing Australia’s transition to renewable energy.
Clancy Moore, CEO of anti-corruption NGO, Transparency International Australia, said:
“The record investment in critical minerals and renewable energy is definitely driving an increase in the risk of corruption and weak governance in Australia.”
“We also know that the risks of bribery and corruption are at their highest in the approval or licensing phase of projects such as renewable energy project.”
More information:
TI Australia’s work on preventing corruption in the infrastructure sector.
TI’s Australia Infrastructure Corruption Risk Assessment tool.
Footage of the AFP’s arrest is here.