Corruption claims mount as premier rejects inquiry call

Corruption allegations continue to plague Victoria's government, prompting urgent calls for a royal commission into criminal networks embedded within the construction industry.

But Premier Jacinta Allan says a royal commission would cost too much money and take too long to make any difference.

Anti-corruption experts Robert Redlich and Deborah Glass have called in the past week for an urgent royal commission into corruption within the government's $109 billion Big Build program.

The Big Build corruption scandal involves allegations that organised crime figures and bikie gangs have infiltrated Victoria's major infrastructure projects through the CFMEU construction union.

Investigations indicate extortion, violence and billions of dollars in bribery-inflated project costs, with funds allegedly siphoned into ghost shifts, nepotism and payments to underworld figures such as Mick Gatto.

Mr Redlich told The Age newspaper a royal commission was desperately needed in order to properly investigate the past decade of "rotten culture" within the industry.

The Australian Federal Police is probing corruption, money laundering and organised crime within Victoria's construction sector.

Ms Allan, who has repeatedly said allegations of construction sector illegality should be referred to police, again rejected calls for a royal commission.

Ms Allan said her focus was on taking immediate action and pointed to strengthening the powers of Victoria Police and the Labour Hire Authority to crackdown on wrongdoers.

Victoria Police's Taskforce Hawk, launched to tackle criminal behaviour in the construction industry, had since laid 93 charges, she said.

The Labor Hire Authority has cancelled 164 licences.

She also cited her commitment to grant the Independent Broad-based Anti-corruption Commission "follow the money" investigative powers.

But any such legislation will not be implemented until a review process is completed by the end of 2027.

"To me, that looks like passing the buck," University of Melbourne law school expert William Partlett told AAP.

"Why are they waiting until after the election ... when they may not be in government?"

While granting stronger powers to integrity bodies was necessary, Dr Partlett said it would still leave accountability gaps.

Only a royal commission would have the resources and powers to tackle a challenge of the scale and scope of the allegations raised against the Big Build, Dr Partlett said.

"It's time for a royal commission," he said.

"A systemic set of problems like this needs a systemic response."

Among the loudest voices calling for a royal commission is Geoffrey Watson SC, the barrister who oversaw a months-long investigation into the CFMEU in 2024.

The integrity expert's report estimated $15 billion might have been lost to wrongdoing on taxpayer-funded construction sites in Victoria.

Ms Allan has disputed that figure while members of her government have cast doubt on Mr Watson's methods.

Dr Partlett, who works with Mr Watson at the Centre of Public Integrity, described those attacks as "incredibly disappointing" efforts to distract from his findings.

"It's a reflection of a government that is looking to deflect rather than actually solve this issue," he said.

Labor senator Penny Wong said the government had made clear to states and territories that crime and corruption within the construction industry would not be tolerated.

Provisions had been included in federal funding agreements to ensure there was strong accountability, she told parliament.

The revelations proved "corruption is continuing to happen today", Victorian Opposition Leader Jess Wilson said.

"Jacinta Allan knew that there was corruption happening on Big Build sites. She is the architect of the very system that has allowed this corruption to run rife right across Victoria," she said.

Federal deputy opposition leader Jane Hume called on work to stop on all construction projects until corrupt elements were removed.