Construction royal commission has already held secret hearings - ABC News & Headlines – Australian Broadcasting Corporation

The Victorian branch of the CFMEU will be at the centre of investigations by the royal commission. (ABC News)

The royal commissioner investigating corruption in Victoria's construction sector has issued a warning to "all people who have done wrong" in the first public hearing.

Allegations to be probed by the commission include that the CFMEU threatened industrial action to force employers to pay extravagant wages to "unqualified associates" of union bosses.

Two blocks of hearings will be held before the end of this year and the royal commission's findings are due by August 2027.

Victoria's royal commission into corruption on government building projects has already held some hearings in secret, its head has revealed.

At the inquiry's first public hearing today, commissioner Christopher Kourakis said the probe would get to the bottom of widespread allegations of corruption, violence and bullying on build sites.

"I assure the people of Victoria, and warn all people who have done wrong, that the commission will leave no stone unturned in search for whatever is hidden — or whomever lurks underneath it," Mr Kourakis said.

The royal commission is being headed by former chief justice of South Australia Chris Kourakis. (ABC News: Lincoln Rothall)

Mr Kourakis urged those who sought to remain in the industry to provide early, voluntary disclosures to the commission rather than "waiting to be found out".

He also said closed hearings had already been held by the commission, containing sensitive information that would shape investigations.

Earlier, associate to the commissioner Peter Tantalos outlined the scope of the royal commission's investigation of crime and corruption on major public infrastructure projects in Victoria including those of the government's signature Big Build initiative.

The royal commission will examine allegations of corruption, violence and bullying on building sites. (ABC News: Danielle Bonica)

Since at least 1980 there had been "persistent allegations of consistent and criminal conduct in connection with major public and civil infrastructure construction projects across Australia", he said.

Mr Tantalos said the terms of reference included investigating "blackmail, bribery and dishonest, bullying, intimidatory, menacing, harassing, discriminatory, misogynistic, threatened or violent behaviour".

The royal commission would also investigate circumstances where there had been a lack of adherence to proper process, improper influence, favouritism or nepotism, he said.

Assisting counsel Chris Young KC told the commission that allegations reached from sheds at worksites to union offices, boardrooms, government departments and ministerial offices.

Mr Young gave several examples of incidents alleged to have occurred, including a small Indigenous-owned labour hire business who he said wrote to the minister and the premier in April 2022.

"They said they'd been threatened with violence and banned from sites on a state project. They said they had recordings. They asked for help," he said.

"It is reported that they got a reply a year later, which referred them elsewhere."

Ben Carroll's first act as Victorian premier was to call the royal commission. (ABC News: Danielle Bonica)

In another incident, a woman working in traffic management on a new public hospital said she was locked in a storeroom by a man recently released from prison for stalking and threatening to kill, Mr Young said.

"She says he smoked ice and blew the smoke in her face," he said.

"She reported it. She says that what happened next was she lost her job."

Mr Young also tendered documents to the royal commission including a June 2023 briefing from the Major Transport Infrastructure Authority (MTIA) to Jacinta Allan, who was then minister for transport and infrastructure.

The commission heard anecdotal reports of criminals on building sites, including members of outlaw motorcycle gangs. (ABC News: Danielle Bonica)

He said the brief noted that the authority had recently received "anecdotal reports" of criminal elements becoming involved in MTIA projects, including members of the Mongol and Bandidos motorcycle clubs.

"Three known ex-criminals had [reportedly] been present on site, including in some cases wearing ankle braces," he said.

The commission heard that the briefing noted the matters would be referred to Victoria Police.

The other member of the commission's senior legal team, Chris Carr CS, said that the CFMEU had a track record of "ostentatiously" defying the law.

Mr Carr said the commission would explore the accuracy of allegations against union bosses.

These included the threat of industrial action to force employers to pay extravagant wages to "unqualified associates of union bosses, often bikies, who had no particular skill or indeed interest in doing the work that they were being paid to do".

The royal commission's purpose was to rebuild trust in the integrity of Victoria's major construction sector, Mr Carr said.

Ben Carroll called the royal commission in his first act as premier in July, promising an exhaustive inquiry into the corruption allegations "as soon as possible".

He committed to the royal commission after toppling his predecessor Jacinta Allan, who had long refused to call an inquiry despite internal pressure.

Former premiers Daniel Andrews and Jacinta Allan may be called to appear before the commission. (AAP Image: Daniel Pockett)

The Victorian opposition has persistently criticised the terms of reference, saying they allowed former premiers Daniel Andrews and Jacinta Allan to avoid being hauled before the commission.

However, Mr Carroll rejected the suggestion Ms Allan or Mr Andrews would not be called, having confirmed that ministers and former premiers would be fair game under the terms.

"Anyone and everyone can be called," he said in August.

The royal commission comes after an explosive report into the CFMEU released by the Queensland Commission of Inquiry in February.

In it, author Geoffrey Watson SC alleged the Victorian branch of the CFMEU descended into a "violent, hateful and greedy rabble" under former boss John Setka.

Two blocks of hearings will be held before the end of 2026 and the commission is expected to report to the state government by August next year.