Victorian Premier Jacinta Allan rejected calls for a royal commission into the state's Big Build infrastructure program following allegations of corruption and cost inflation. Ms. Allan denied government corruption and defended the costs associated with employing unionized labor on the projects.

Allegations surfaced in an investigation by Nine newspapers and a television current affairs program, claiming that money from Big Build projects, which include the Metro Tunnel and the Suburban Rail Loop, was paid to gangland figures. The investigation, titled "Building Bad," also reported that the state government received warnings about cost blowouts due to demands from the Construction, Forestry and Maritime Employees Union (CFMEU). Infrastructure companies reportedly warned the Victorian government between 2022 and 2024 that CFMEU demands had inflated labor costs on the Metro Tunnel.

A leaked consortium report, referenced in the investigation, warned the state government about cost increases of 22% above existing industry norms in Victoria. This report estimated that $196.4 million of labor costs were driven by union-backed staffing, outlining how contractors were compelled to add additional non-productive workers. The consortium indicated it conceded to CFMEU demands with the Labor government's support. Ms. Allan stated she had not read the consortium's report.

"Inflationary pressures on projects is not corruption," Ms. Allan said. She added, "After all this time, if there is any evidence of any allegation of criminal behaviour that includes corruption and extortion, I don't understand why that wouldn't immediately be reported to Victoria police."

Opposition Leader Jess Wilson claimed that Nine's reporting demonstrated that "the corruption continues to happen today." Wilson added, "Payments are continuing to underworld figures under Premier Jacinta Allan's watch." Federal Deputy Opposition Leader Jane Hume called for a royal commission and a funding pause on state infrastructure projects. Hume said, "I do believe that you need to remove the corrupt elements before you can continue to give taxpayer money to these projects." Ms. Allan responded that halting infrastructure projects "would see tens of thousands of workers put off the job immediately."

A report by barrister Geoffrey Watson SC, tendered during a Queensland inquiry in February, estimated that Big Build corruption involving the union had cost Victorian taxpayers up to $15 billion. The Allan government rejected this $15 billion estimate as "unfounded" at the time.

The Big Build program began in 2015 following the election of the Daniel Andrews-led Labor government. Allegations of corruption and inflated costs, reportedly due to union demands and payments to criminal figures, have raised questions about the financial oversight and integrity of public works projects.