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How the underworld is controlling a major government construction project | 60 Minutes Australia — Transcript

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  1. 0:00Coming up on 60 Minutes. It's straight
  2. 0:03out corruption. This absolutely needs to
  3. 0:05be exposed. We've got the smoking gun.
  4. 0:09>> You live in fear of speaking out.
  5. 0:11>> A Nick McKenzie investigation you cannot
  6. 0:15miss.
  7. 0:16>> What do Victorians deserve given what's
  8. 0:18going on?
  9. 0:19>> They deserve nothing but the truth.
  10. 0:21That's next on 60 Minutes.
  11. 0:24The big build in Victoria is a massive
  12. 0:27infrastructure scheme largely financed
  13. 0:29by the public purse. It should be a
  14. 0:32source of massive pride, especially for
  15. 0:34the Victorian Labour premier just to
  16. 0:36Allen. Instead, it's a massive scam, one
  17. 0:40of the largest in Australian history,
  18. 0:42where gangland figures and other crooks
  19. 0:45have ripped off billions of dollars from
  20. 0:47the taxpayer. Of course, claims of
  21. 0:50corruption on the big build are not new.
  22. 0:53on 60 Minutes and in the Age and Sydney
  23. 0:55Morning Herald. I've been reporting on
  24. 0:57the blatant wrongdoing for two years.
  25. 1:00But it's only now I've discovered why
  26. 1:02very little has been done to stop it.
  27. 1:05Damning evidence we'll reveal tonight
  28. 1:08proves the Victorian government turned a
  29. 1:10blind eye to the rotting.
  30. 1:14>> Mick, would you like to say anything?
  31. 1:17While it's long been suspected that
  32. 1:19underworld identity Mick Gateau has had
  33. 1:22ties to corruption in Melbourne's
  34. 1:24construction industry, proving it has
  35. 1:27been another matter entirely. Mick, why
  36. 1:30were police at your property?
  37. 1:32>> That is until now. For the first time,
  38. 1:36we can reveal the evidence that shows
  39. 1:39Gateau is profitering from Victoria's
  40. 1:42$100 billion infrastructure program, the
  41. 1:46Big Build.
  42. 1:46>> People would be horrified to know that's
  43. 1:49actually happening and this has been
  44. 1:51allowed to happen. It's just crazy.
  45. 1:54Tonight we name the big build companies
  46. 1:56with Gatau or his associates on their
  47. 2:00payrolls enabled by some of the biggest
  48. 2:03contractors in the country. Have they
  49. 2:05been held to account?
  50. 2:06>> They have not been held to account.
  51. 2:08>> Why the hell not?
  52. 2:08>> Because the laws in this country need to
  53. 2:10be improved
  54. 2:12>> and we confront a premier in denial on
  55. 2:15why taxpayers are being so
  56. 2:17comprehensively duted.
  57. 2:20Do you accept as you stand here today
  58. 2:23that there is in fact corruption and has
  59. 2:26been corruption on the big bill? Do you
  60. 2:27accept that yes or no?
  61. 2:28>> Well, if there is evidence to support
  62. 2:30that and that is those that evidence is
  63. 2:32found to be supported by Victoria
  64. 2:34Police's investigations, that is a
  65. 2:36matter for Victoria Police to report on.
  66. 2:39>> The premier still won't acknowledge the
  67. 2:41fact of corruption on the big build. Are
  68. 2:44you in any doubt there is a factual
  69. 2:47basis to say there is corruption on the
  70. 2:49big build? Oh, sorry. Read my lips.
  71. 2:51There is corruption on the big build and
  72. 2:53everybody knows it.
  73. 2:59>> That's amazing.
  74. 3:02>> The evidence is explosive. It shows just
  75. 3:05how deep the underworld has sunk its
  76. 3:07claws into Victoria's big ticket rail
  77. 3:10and road scheme. What's clear is that to
  78. 3:13access and remain on the big build, some
  79. 3:16subcontractors are paying Mick Gateau or
  80. 3:19his associates large sums of money.
  81. 3:22Money that's ultimately added to the
  82. 3:24bloated taxpayer bill. It's a megawar.
  83. 3:27It's costing the state a fortune.
  84. 3:35The evidence has come from an industry
  85. 3:38insider who's had ghetto on the payroll.
  86. 3:41He's turned whistleblower to reveal the
  87. 3:44frightening cost and grubby truth of how
  88. 3:47some still get work on the largest rail
  89. 3:50and road scheme in Victoria's history.
  90. 3:55The informer is at risk, so we've had to
  91. 3:58hide his identity. But the words spoken
  92. 4:01by an actor are his.
  93. 4:04You've asked to be disguised. You've
  94. 4:06asked for the name of your big build
  95. 4:07subcontractor not to be revealed. Why
  96. 4:10so?
  97. 4:11>> Unfortunately, when your personal safety
  98. 4:15is at stake,
  99. 4:17uh you don't have a choice but to remain
  100. 4:20anonymous.
  101. 4:21>> So, why then speak out at all?
  102. 4:24>> It's gotten ridiculous. the cost of the
  103. 4:26big build, the amount of unnecessary
  104. 4:29expenditure. At some point in time,
  105. 4:32something's got to be done. As much as
  106. 4:34it seems like the government has talked
  107. 4:36about things getting done, nothing seems
  108. 4:38to really change.
  109. 4:41>> But maybe, just maybe, this man's
  110. 4:44information might finally prompt action.
  111. 4:50That's because he's helped expose a
  112. 4:52complex web of money movements involving
  113. 4:55multiple companies all linked back to
  114. 4:58Mick Gatau or his crew. Their
  115. 5:01transactions involving large sums of
  116. 5:03money that continue to this day.
  117. 5:07Have you actually paid Mig?
  118. 5:10>> Yes.
  119. 5:11>> It's a stunning claim. He says he had no
  120. 5:15choice but to stump up hundreds of
  121. 5:18thousands of dollars to Ghetto and he's
  122. 5:20given us the invoices and bank transfers
  123. 5:23to prove it.
  124. 5:25If you don't pay Gatau, you don't get
  125. 5:28access to the big build through Gatau
  126. 5:32and through the union. Uh they control
  127. 5:35who goes on the project and who doesn't
  128. 5:39get access to the project.
  129. 5:41This might seem very far removed for the
  130. 5:43public. Why should they care?
  131. 5:45>> When we pay ghetto, it gets added to the
  132. 5:49cost of our work. If we didn't have to
  133. 5:52pay ghetto,
  134. 5:53we would do the work for cheaper and
  135. 5:56ultimately
  136. 5:58it's the general public that pay for
  137. 6:00that.
  138. 6:03It was earlier this month on a gray
  139. 6:05winter's day that the home of Victoria's
  140. 6:08most colorful gangland figure was raided
  141. 6:10by police. Mick Ghetto brushed it off,
  142. 6:14dismissing it as a total beat up over
  143. 6:17speeding demerit points.
  144. 6:18>> Appreciate all you guys saying in the
  145. 6:20cold. The only thing I can say is when
  146. 6:22they use 20 or 30 police over a speeding
  147. 6:25fine, this country is in trouble.
  148. 6:28>> Anyway, I've got to go. Take care, guys.
  149. 6:29Cheers.
  150. 6:32In interviews, Gateau has been equally
  151. 6:35dismissive of any suggestion he might
  152. 6:38have made money from Victoria's Big
  153. 6:40Bill.
  154. 6:41>> If the Anti-Corruption Commission then
  155. 6:43was given follow the money powers, would
  156. 6:45they find a paper trail leading from you
  157. 6:48to Big Bill contractors?
  158. 6:49>> No chance in the world.
  159. 6:52>> But our insider says that simply isn't
  160. 6:55true.
  161. 6:57Is Ghetto still earning money from big
  162. 6:59build subcontractors?
  163. 7:01>> Yes, he is.
  164. 7:02>> Why are they paying given we're meant to
  165. 7:04have had two years of government
  166. 7:06response and law enforcement response or
  167. 7:09why are people still paying Gh?
  168. 7:11>> I guess firstly he's he still is
  169. 7:13operating. There's been no stopping of
  170. 7:16his his empire. You've got the you've
  171. 7:19got the union still in cahoots with him.
  172. 7:22Uh so you have the threat of industrial
  173. 7:24action and of course the threat of
  174. 7:26ghetto ensuring that you won't get work
  175. 7:29on the big build and he still has
  176. 7:32influence without a doubt.
  177. 7:34>> How has organized crime seen the big
  178. 7:37build?
  179. 7:38>> I think opportunity just straight out of
  180. 7:39pot of money and it's the people that
  181. 7:42pay. This isn't a case of government
  182. 7:43money cuz government money is your
  183. 7:45money. It's the taxpayer money. It's
  184. 7:47obscene.
  185. 7:52In 2006, Dan Bulch was a detective with
  186. 7:56the Piranha Task Force, probing
  187. 7:58Melbourne's underworld and arresting
  188. 8:00some of the worst of the worst.
  189. 8:03He went on to become the deputy
  190. 8:05commissioner of Papa Newu Guiney's
  191. 8:07corruption watchdog. We asked him to
  192. 8:10analyze the information we've uncovered
  193. 8:12about Victoria's big build. You've spent
  194. 8:15the last part of your career combating
  195. 8:18corruption in PNG. How does Victoria's
  196. 8:21Big Build compare?
  197. 8:22>> I think the way in which it operates um
  198. 8:24is very very similar and it was really
  199. 8:26surprising. I mean, there's a phrase
  200. 8:28that I keep hearing and I've heard it a
  201. 8:29lot over my time in organized crime and
  202. 8:31and in corruption and it's everybody
  203. 8:33eats.
  204. 8:39It's precisely the phrase we heard two
  205. 8:42years ago when 60 Minutes the Age and
  206. 8:45the Sydney Morning Herald first exposed
  207. 8:47the ugly underbelly of the Big Build in
  208. 8:50this undercover sting. Back then we
  209. 8:54caught self-styled industry fixer Harry
  210. 8:57Chorus explaining how a wouldbe
  211. 8:59subcontractor needed to pay kickbacks to
  212. 9:03guarantee access to the big build. I
  213. 9:06think the upfront fee is cash, but all
  214. 9:08you're going to do, I told you, pay the
  215. 9:10boys, make sure they're okay,
  216. 9:12>> and that's it. That's business.
  217. 9:13>> And everybody eats.
  218. 9:16>> Everybody eats. It's straight out
  219. 9:18corruption. Like, there's another word
  220. 9:20for it.
  221. 9:21>> That tape came out two years ago. Not a
  222. 9:25single charge in connection to it. What
  223. 9:28does that tell us about how the system
  224. 9:31is working today?
  225. 9:32>> Well, it's not, is it? I mean, two
  226. 9:34years. I mean, whilst some
  227. 9:36investigations can take a long time, but
  228. 9:39why would you not be looking at that the
  229. 9:40next day? It's bizarre.
  230. 9:43>> Throughout those 2 years, the
  231. 9:46construction industry's Mr. Fixit, Mick
  232. 9:48Gatau, has loomed large. He styles
  233. 9:52himself as a mediator who gets things
  234. 9:55done. But Dan Bulch sees him as an
  235. 9:58industry gatekeeper who trades on fear.
  236. 10:03How has he remained so relevant for so
  237. 10:05long in the construction sector here?
  238. 10:07>> Yeah. What's the name Nick Ghetto? And
  239. 10:09it wields influence not only in the
  240. 10:10underworld but also now in the
  241. 10:12construction industry.
  242. 10:13>> And it makes money.
  243. 10:14>> 100% it does.
  244. 10:17>> You've conducted your own analysis for
  245. 10:19us. Have you seen hard evidence that
  246. 10:21Mikado has been paid by big build
  247. 10:24subcontractors and is still being paid
  248. 10:26by the same?
  249. 10:27>> Yes, I have. And it's not small. There
  250. 10:30are payments that are coming uh from
  251. 10:33those companies, those subcontractors
  252. 10:35that are going to MCAT and we're looking
  253. 10:37at payments, you know, ranging between5
  254. 10:41to $60,000 at a time on a regular basis.
  255. 10:45And the question is, what does McGhetto
  256. 10:47do on the big build?
  257. 10:48>> I'll ask you, what does he do?
  258. 10:49>> I haven't seen anything. I think what
  259. 10:51what he does is this so-called mediation
  260. 10:54and consultation on what I mean haven't
  261. 10:57we got like a a well-paid
  262. 11:00internationally renowned construction
  263. 11:01company in partnership with the state
  264. 11:03government that's overseeing all of this
  265. 11:06don't they know what they're doing what
  266. 11:09what is it that McGau is actually doing
  267. 11:10for them
  268. 11:13>> so why hasn't anything been done to curb
  269. 11:17Matau's secret business empire
  270. 11:20>> these These big build contractors
  271. 11:23paying Gat, are they victims or are they
  272. 11:26part of the problem?
  273. 11:27>> Are they part of the problem?
  274. 11:29>> Coming up, how on earth has it come to
  275. 11:32this?
  276. 11:33>> I think they deserve nothing but the
  277. 11:35truth. This absolutely needs to be
  278. 11:37exposed.
  279. 11:48Given that Victoria's colossal
  280. 11:50infrastructure program, the big bill, is
  281. 11:53paid for by taxpayers, where the money
  282. 11:56goes should be carefully vetted and
  283. 11:59beyond reproach. But the truth is, it's
  284. 12:02hemorrhaging money to companies with
  285. 12:05links to the underworld. It has been for
  286. 12:08years. that this is allowed to happen is
  287. 12:11a damning indictment of the Victorian
  288. 12:14government which seems paralyzed by
  289. 12:16inaction.
  290. 12:18>> What we have seen here in recent days
  291. 12:20isn't unionism. It's thuggish,
  292. 12:23unacceptable behavior. I have zero
  293. 12:26tolerance for this sort of behavior.
  294. 12:28>> Since the building bad scandal first
  295. 12:31broke in July 2024, Victorian Premier
  296. 12:34Justinta Allen has sounded like a
  297. 12:37scratched record. I have absolutely zero
  298. 12:40tolerance for this sort of behavior. I
  299. 12:42have zero tolerance for this sort of
  300. 12:45behavior. We have zero tolerance for
  301. 12:47this behavior. We have zero tolerance
  302. 12:49for this behavior.
  303. 12:50>> But her critics say there's been little
  304. 12:52to show for it.
  305. 12:54>> She says she has held herself
  306. 12:56responsible. Do you believe her? I
  307. 12:59>> I don't see any evidence of that at all.
  308. 13:00Just the opposite.
  309. 13:02Corruption investigator Jeffrey Watson,
  310. 13:05who's looked deep into rampant
  311. 13:07wrongdoing in the construction union,
  312. 13:10the CFMEU, says by any meaningful
  313. 13:13measure, Justinta Allen has failed.
  314. 13:16Well, it's just utterly inadequate. The
  315. 13:18people of Victoria should be absolutely
  316. 13:21angry, furious about this. It's actually
  317. 13:24letting a major problem continue to
  318. 13:26fester. It's actually funding organized
  319. 13:30crime, outlaw motorcycle gangs.
  320. 13:33It's actually shameful.
  321. 13:38>> Evidence of that can be found in the
  322. 13:40catalog of companies that we can reveal
  323. 13:44have gangland identity Nick Gatau on
  324. 13:46their payrolls. Our investigation has
  325. 13:50led us to over a dozen big build
  326. 13:52subcontractors whose owners have been
  327. 13:55making large payments to Gatau or his
  328. 13:58associates.
  329. 14:01Can you give me a stab at the combined
  330. 14:03turnover of these companies that have
  331. 14:06placed Gateau on their payroll?
  332. 14:08>> It's only a stab, but I can tell you
  333. 14:10it's millions. Hundreds of millions of
  334. 14:12dollars. No doubt about it. a proportion
  335. 14:15of which goes directly back to MC Gatau.
  336. 14:19>> Thanks to a leak from inside the Gateau
  337. 14:21Empire, we've identified dozens and
  338. 14:24dozens of payments from big build
  339. 14:27companies to Gatau month after month
  340. 14:30through 2024, 2025, and even 2026.
  341. 14:36They're mostly in the tens of thousands,
  342. 14:38but sometimes more. And in all, they
  343. 14:41total millions. They just won't leave me
  344. 14:44alone and what I do is all above board
  345. 14:47and completely legal.
  346. 14:48>> Jeffrey Watson says Ghetto has been
  347. 14:51helping big build firms prosper as they
  348. 14:55serviced multi-million dollar taxpayer
  349. 14:57contracts with the gangland boss getting
  350. 15:00his cut.
  351. 15:01>> And I'm yet to see any evidence of any
  352. 15:03useful service that Mr. Ghetto provided.
  353. 15:06When he was smoothing over disputes,
  354. 15:07they were often manufactured disputes.
  355. 15:10when he was uh quilling a fight between
  356. 15:13two parties, it was something he usually
  357. 15:15engineered. I never saw him provide any
  358. 15:20useful service and yet he was being
  359. 15:23paid.
  360. 15:25It's very clear
  361. 15:27millions of dollars a year.
  362. 15:29>> Why do labor hire companies do you think
  363. 15:31put Migate on their payroll?
  364. 15:34>> Hiring Ghetto helps you get onto the big
  365. 15:36build. Hiring Ghetto keeps you on the
  366. 15:39big build. Hiring Ghetto keeps your jobs
  367. 15:42operating smoothly while you are on the
  368. 15:44big build.
  369. 15:47In March 2025, Australian Federal Police
  370. 15:50were also on the money trail as they
  371. 15:53raided the home and office of the Gatau
  372. 15:56Cruz accountant Charles Pelro.
  373. 16:00Back then, we highlighted how gangland
  374. 16:02figures were profiting from the big
  375. 16:04build, leading to yet more promises of a
  376. 16:07crackdown by the premier.
  377. 16:10Are you aware that at the moment
  378. 16:12gangland figures continue to profit from
  379. 16:14the big build?
  380. 16:16>> So, if there are allegations of that
  381. 16:18regard, I would encourage those
  382. 16:19allegations to be put to Victoria
  383. 16:21Police. I have absolutely zero tolerance
  384. 16:24for this sort of behavior.
  385. 16:27>> But the evidence shows the payments kept
  386. 16:30on coming and are still coming out of
  387. 16:33the blue corner. This man's a tradey
  388. 16:35standing.
  389. 16:36>> To understand how it works, it helps to
  390. 16:38meet this man,
  391. 16:40>> Tony the Trayone.
  392. 16:45Tony Chiconei is an amateur fighter seen
  393. 16:49here with his trainer and mate Sam
  394. 16:51Greco. Chicone owns a company called
  395. 16:54Cyclon Civil and he and Greco also own
  396. 16:58Project Labor Solutions, a labor hire
  397. 17:01firm.
  398. 17:04>> The industry insider who has revealed to
  399. 17:06us the secrets of Matau's business
  400. 17:08empire says both companies were favored
  401. 17:12for lucrative work on the big build.
  402. 17:14SYON Civil are a major civil contractor
  403. 17:17in Victoria and Project Labor Solutions
  404. 17:20is a labor hire business owned by the
  405. 17:22Syon Civil owners. They work on the big
  406. 17:25build. Project Labor Solutions supplies
  407. 17:28hundreds and hundreds of personnel to
  408. 17:30the big build contractors.
  409. 17:32>> Do you know as a fact that the owner of
  410. 17:36Syon Civil Project Labor Solutions is
  411. 17:39actually paying Miketta? Yes. So, I I
  412. 17:42know that as a fact.
  413. 17:44>> And And why are those payments being
  414. 17:46made?
  415. 17:46>> Access to the big build. There's
  416. 17:48established labor high companies that
  417. 17:50have been in Victoria for 20 years that
  418. 17:52didn't get access to the big build. Um,
  419. 17:55but PLS and some others did. Uh, so it
  420. 18:00can only be through paying Gatau and
  421. 18:02getting the favoritism that you need to
  422. 18:04get that lucrative contract.
  423. 18:09Despite Tony Chicone's denials, he has
  424. 18:12paid Migato more than 30 times, over $1
  425. 18:16million in total with multiple payments
  426. 18:19in 2026.
  427. 18:21We've also learned Chiconei is one of at
  428. 18:24least two big bill Gateau payers who
  429. 18:27have separately made donations and other
  430. 18:30payments totaling tens of thousands of
  431. 18:32dollars to the Victorian Labor Party and
  432. 18:36the CFMEU.
  433. 18:38But why would they do that? Oh,
  434. 18:40>> we'll have a guess. It's for exactly the
  435. 18:43same reason. The point is that they want
  436. 18:45the connections with the Labor Party the
  437. 18:47same way that they wanted with the
  438. 18:48CFMEU. There's a strong connection
  439. 18:50between the Labor Party, the CFMMEU, and
  440. 18:52the building industry.
  441. 18:55Another player in the scandal involving
  442. 18:58Gatau linked hire firms is this man, ex
  443. 19:02CFMEU boss turned industry consultant
  444. 19:06Joe Miles. Up until the middle of 2024,
  445. 19:10Miles had near free reign over the big
  446. 19:13build and was empowered by the union and
  447. 19:16the Labor government to pick which
  448. 19:19subcontractors would win lucrative
  449. 19:21contracts. His favorite firm was women
  450. 19:25in construction, a mega supplier of
  451. 19:28female workers to the big bill. And as
  452. 19:30we can reveal, another company paying
  453. 19:33Gateau a small fortune. It's plainly a
  454. 19:38company which is being run by criminals.
  455. 19:41I've seen evidence that it's paying a
  456. 19:43lot of money to MC Gatau to get that
  457. 19:46status in the first place and to keep
  458. 19:48it.
  459. 19:50For a company promoting equality, it's
  460. 19:53hard to imagine a less suitable pair to
  461. 19:56run women in construction than these two
  462. 19:59men. Owner and founder Luke Ellery has
  463. 20:03convictions for violence against women
  464. 20:06as does its former manager, major
  465. 20:08criminal Wayne Carter.
  466. 20:11>> He's a man with a very, very serious
  467. 20:13criminal record, which goes to heroin
  468. 20:15dealing, methamphetamine dealing, other
  469. 20:17drugs, violence, including domestic
  470. 20:20violence.
  471. 20:21>> Wayne Carter was also a good mate of Joe
  472. 20:24Miles. We've uncovered court records
  473. 20:26that show Miles wrote to the Queensland
  474. 20:28judge preparing to sentence Carter for
  475. 20:31drug trafficking in 2020. In his plea
  476. 20:34for leniency, Miles said he would
  477. 20:36provide Carter with significant support
  478. 20:39if he moved to Melbourne. Sure enough,
  479. 20:41when Carter was released from jail,
  480. 20:43Miles placed him in charge of Women in
  481. 20:46Construction and pushed the company onto
  482. 20:48Labour's big build.
  483. 20:50>> What did you learn about what Wayne
  484. 20:51Junior Carter was doing at Women in
  485. 20:53Construction? I was repeatedly told the
  486. 20:56women in construction had been set up by
  487. 20:58a sexual predator who was actually
  488. 21:00obtaining sexual services from the women
  489. 21:02so that they could get these very
  490. 21:04lucrative jobs.
  491. 21:06It was really awful.
  492. 21:11What's more, Jeffrey Watson says women
  493. 21:13in construction was hugely inflating
  494. 21:16what it charged the big build.
  495. 21:19>> There's no doubt about that. If you have
  496. 21:20a look at the use of these specialized
  497. 21:23firms with CFMEU connections, they were
  498. 21:26charging 25% more than other labor hire
  499. 21:30companies.
  500. 21:30>> Did the Labor government know that Women
  501. 21:33in Construction was costing ultimately
  502. 21:35it as you say 25% more? Yes, I've seen
  503. 21:39the paperwork which went through to the
  504. 21:41governmental officials to explain to
  505. 21:43them that the CFMEU had forced certain
  506. 21:46large contractors to use favored labor
  507. 21:50hire companies and that they were
  508. 21:52literally 25% more.
  509. 21:57We've confirmed Women in Construction
  510. 21:59cost the taxpayer tens of millions of
  511. 22:01dollars and it funneled $700,000
  512. 22:05to Mick Gateau, including fresh payments
  513. 22:08this year. How do you describe the Women
  514. 22:11in Construction story?
  515. 22:13>> I think it's really one of the blackest
  516. 22:14marks of all because they've set up a
  517. 22:17business which as far as I can tell has
  518. 22:20just been lining the pockets of people
  519. 22:21with extensive criminal records.
  520. 22:24Coming up,
  521. 22:26>> why is it so hard to simply acknowledge
  522. 22:27the fact that there is corruption on the
  523. 22:29big bill?
  524. 22:31>> The smoking gun that shows just what the
  525. 22:34Victorian premier knew.
  526. 22:43No one has done more to try to clean up
  527. 22:46Victoria's construction sector than
  528. 22:49Steve Dargable.
  529. 22:51He's the Labour hire commissioner and
  530. 22:53since the building bad scandal broke two
  531. 22:56years ago, he's been hunting down
  532. 22:58companies who are secretly in bed with
  533. 23:01the underworld.
  534. 23:03>> People who have done the wrong thing
  535. 23:04should be held to account.
  536. 23:06>> Your investigators have been pursuing
  537. 23:08labor providers in the construction
  538. 23:10sector.
  539. 23:10>> Absolutely.
  540. 23:11>> You've been cancelling licenses.
  541. 23:13>> Absolutely.
  542. 23:13>> You've been seeking to cancel licenses.
  543. 23:15>> Absolutely.
  544. 23:18And days ago, after we began asking
  545. 23:21questions, he tore up the license of
  546. 23:24labor hire firm Women in Construction,
  547. 23:26giving it until next Friday to get off
  548. 23:29Victoria's mega infrastructure scheme,
  549. 23:31the big build.
  550. 23:35But his real beef is with the tier ones,
  551. 23:38the massive firms running the big build
  552. 23:40for the state government and hiring
  553. 23:43Gatau links companies like Women in
  554. 23:45Construction and Project Labor
  555. 23:47Solutions. What sort of behavior in
  556. 23:50layman's terms are we talking about?
  557. 23:51>> There is evidence of principal
  558. 23:54contractors being involved in uh
  559. 23:57unlawful conduct or supporting those who
  560. 23:59are engaging in unlawful conduct. You
  561. 24:02say tier ones, the major companies using
  562. 24:04this construction labor hire are
  563. 24:05responsible.
  564. 24:06>> I say that they are absolutely
  565. 24:07responsible and should be held to
  566. 24:09account.
  567. 24:10>> Have they been held to account?
  568. 24:11>> They have not been held to account.
  569. 24:12>> Why the hell not?
  570. 24:13>> Because the laws in this country need to
  571. 24:15be improved. Ultimately, the fish rots
  572. 24:18from the head. The principal contractor
  573. 24:20is the head. And if the body is rotten,
  574. 24:22the question has to be why are they
  575. 24:24suffering it to continue?
  576. 24:27But we can also show how the Victorian
  577. 24:30government has knowingly done its part
  578. 24:33in squandering taxpayer money estimated
  579. 24:36to be in the billions. The evidence is
  580. 24:40contained in a tranch of secret
  581. 24:42documents written in 2023 and 2024 by
  582. 24:47the principal contractors building the
  583. 24:49Metro Tunnel and other mega rail
  584. 24:52projects. The leak shows the Metro
  585. 24:55Tunnel project said it was the state
  586. 24:57government who told it to use CFMEU
  587. 25:00companies even though it cost the
  588. 25:02project an additional $200 million in
  589. 25:06labor high costs. The leak also reveals
  590. 25:08the Victorian government actively
  591. 25:11supported the SEMA's big build labor
  592. 25:14high racket.
  593. 25:16The Metro Tunnel report also names two
  594. 25:20firms contributing to cost blowouts.
  595. 25:23We have separately confirmed both had a
  596. 25:26familiar name on their payrolls,
  597. 25:29underworld figure Matau. Earlier this
  598. 25:32month, the premier fronted the media but
  599. 25:35refused to do more than acknowledge
  600. 25:38allegations of wrongdoing on the big
  601. 25:40bill.
  602. 25:41>> Okay. Premier, do you accept that there
  603. 25:43has been serious corruption on the big
  604. 25:45bill?
  605. 25:46>> There has been allegations that I find
  606. 25:48appalling. Absolutely appalling.
  607. 25:51>> You mentioned allegations. Do you accept
  608. 25:53as you stand here today that there is in
  609. 25:56fact corruption and has been corruption
  610. 25:59on the big bill. Do you accept that? Yes
  611. 26:00or no?
  612. 26:00>> Well, if there is evidence to support
  613. 26:02that and that is those that evidence is
  614. 26:04found to be supported by Victoria
  615. 26:06Police's investigations, that is a
  616. 26:08matter for Victoria Police. Surely it's
  617. 26:09a matter for you as premier and as the
  618. 26:11minister formerly responsible for the
  619. 26:13big build.
  620. 26:14>> Surely.
  621. 26:15>> Yes. And again, where there are
  622. 26:17allegations of illegal or criminal
  623. 26:19behavior, they should always be referred
  624. 26:22to Victoria Police.
  625. 26:24>> Why is it so hard to simply acknowledge
  626. 26:25the fact that there is corruption on the
  627. 26:27big bill? Again, I have already and I
  628. 26:30indicated this. I draw you back to what
  629. 26:32I said at the outset was absolutely
  630. 26:35appalled by the uh by the reporting and
  631. 26:38the allegations of alleged criminal
  632. 26:40behavior.
  633. 26:43>> Robert Redick and Deborah Glass used to
  634. 26:46be the most senior corruption fighters
  635. 26:48in Victoria. Robert, a former judge at
  636. 26:51the helm of the independent broad-based
  637. 26:53anti-corruption commission, and Deborah,
  638. 26:56the former state ombudsman. They've now
  639. 26:59joined forces to call for Justint Allen
  640. 27:01to do what they say is desperately
  641. 27:04needed.
  642. 27:05>> This is an unprecedented
  643. 27:08historic scandal.
  644. 27:10Um, I know of no scandal that's involved
  645. 27:14the sort of public wastage that has
  646. 27:16occurred here. And it's only a royal
  647. 27:20commission that can root out all of the
  648. 27:24causes, all of the reasons why the
  649. 27:27checks and balances that are in place
  650. 27:30have failed. How would you describe the
  651. 27:33fact that multiple big build
  652. 27:35subcontractors
  653. 27:37are even today regularly paying mig?
  654. 27:41Well, it's a form of of extortion. If
  655. 27:44you want to participate in the big
  656. 27:46build, you have to pay not for the
  657. 27:49service you're uh rendering. You have to
  658. 27:52pay to get into the process. That's a
  659. 27:55form of extortion.
  660. 27:58Mick Gateau and Justinta Allen both
  661. 28:00declined our interview requests. But
  662. 28:03this month, two years too late, the
  663. 28:06premier announced she would give
  664. 28:08Redlick's old anti-corruption agency,
  665. 28:10IBBACK, new powers to trace money moving
  666. 28:13from the big build to gangland figures
  667. 28:16like MGATA. However, there is a catch.
  668. 28:20The new measures won't come into effect
  669. 28:22until the end of 2027, over a year after
  670. 28:27the November state election. What we're
  671. 28:30seeing is
  672. 28:32a government that decides to build a
  673. 28:37huge expensive hole in the ground.
  674. 28:41And when it's digging that huge
  675. 28:43expensive hole, it doesn't care what it
  676. 28:46costs.
  677. 28:47doesn't care what what else is involved.
  678. 28:51It just keeps on digging.
  679. 28:54>> Has the premier of Victoria dug herself
  680. 28:56into a hole that she simply can't get
  681. 28:57out of now?
  682. 28:59>> I think that's a question for a Royal
  683. 29:00Commission.
  684. 29:04>> Hello, I'm Dimit Clancy. Thanks for
  685. 29:07watching 60 Minutes Australia. Subscribe
  686. 29:09to our channel now for brand new stories
  687. 29:12and exclusive clips every week. And
  688. 29:14don't miss out on our extra minute
  689. 29:16segments and full episodes of 60 minutes
  690. 29:19on nnow.com.au

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