Latest news with #BigBuild
Herald Sun
20-05-2025
- Business
- Herald Sun
Victorian state budget: Myki credit card tap-ons running 18 months late
An upgrade of the troubled myki system to allow for credit card tap-ons across the transport network will cost an extra $137 million and is running 18 months late. The new financial hit is among $3.3 billion in major project blowouts that have battered the state budget in the past year — a total increase of about 2 per cent for the projects impacted. Delays of three months or more have also hit almost a third of projects across the state, as broader construction sector woes continued to hit the Big Build. The taxpayer pain comes as the Allan Government taps the brakes on its Big Build, which is spread across 518 public sector roads and rail, schools, and hospitals, to create a more 'sustainable infrastructure program'. Some of the budget blowouts include $838m on the Metro Tunnel announced last year, more than $410m on regional rail upgrades, $53m on the troubled Murray Basin Rail Project, and $40m on the Tarneit railway station in Melbourne's west. Most of the blowouts are blamed on market forces, with construction costs soaring over recent years. But the $137m blowout on the myki upgrade was due to a 'program reset', which was forced after contractor Conduent complained of unforeseen costs. This included being unable to access source code and other technical information from the previous operator. Budget papers show the full project is not due to finish until the end of 2028, after being due to wrap up halfway through 2027. Despite this, the government has committed to having credit cards in use for full fare passengers on some modes of transport early next year, after it announced it would do a staged rollout. The Herald Sun revealed the project had been thrown into turmoil this year when one of the project partners walked away from the job, following a legal dispute over costs. The budget papers suggest the worst of the material price hikes sparked by Covid-19 and global chaos are behind us, but that risks of skills shortages remain. After annual infrastructure spending hit an unprecedented $24bn a year, capital investments are set to slow to $16bn a year by 2028-29, under what Treasurer Jaclyn Symes calls a 'commitment to a sustainable infrastructure program'. An extra $8.1bn in new projects have been jammed into the pipeline this year, however, ensuring job numbers don't dry up overnight. This includes the previously announced spending on the Sunshine station expansion and untangling of rail lines in the west, which the Allan Government says paves the way to build an Airport Rail Link. It also includes $1.2bn in schools and education, and $214m on hospitals. As Victoria's infrastructure spending slows – albeit to a level that is still higher than prior to the Covid-19 crisis – budget papers also show a significant proportion of spending over the next decade will be on the $34.5 billion Suburban Rail Loop East. The Government now calls the first stage of a 90km orbital rail line 'Australia's biggest housing project' due to plans to build 70,000 new homes around station precincts, including in suburban high rises. The State hopes to secure $11.5bn from the Commonwealth to help pay for the 26km tunnel between Cheltenham and Box Hill, which will be dug from next year and open to passengers in 2035. So far, the Albanese Government has provided $2.2bn, but has baulked at further cash injections until issues with a project business case – raised by its advisory body Infrastructure Australia – have been addressed. State Budget papers take a dig at the Commonwealth for historically underfunding Victorian infrastructure, as a share of population. This includes this year's federal budget, which provides Victoria a 21.4 per cent share of national rail and road funding despite the state housing 25.8 per cent of the country's population. 'Funding received from the Commonwealth is also often not aligned with project milestones, meaning the State is providing upfront cashflows for jointly funded major projects,' the Budget says. It says a co-ordinated effort by the Commonwealth and State is needed to better deliver infrastructure in the national interest including 'investment in the city-shaping Suburban Rail Loop, a crucial transport link and Australia's biggest housing project in its most populous city'.
Sydney Morning Herald
15-05-2025
- Politics
- Sydney Morning Herald
Australia news LIVE: Coalition, division, PM heads to Rome, Roberts-Smith back in court
Latest posts 7.00am Underworld links in big building projects secretly mapped By Nick McKenzie Victoria's Allan government is secretly mapping the infiltration of Victoria's biggest infrastructure projects by firms with suspected links to the underworld while warning its key contractors to purge gangland figures from their supply chains. The moves are detailed in confidential documents from the state's peak infrastructure agency that reveal the government's concern about the reach of figures such as Mick Gatto and bikie enforcers into its sprawling multibillion-dollar Big Build program. One file includes a list of firms that officials suspect may be both gangland-linked and profiting – directly or indirectly – from taxpayer projects. They include Gatto and his construction industry consulting businesses along with the Gatto-linked traffic management firm Jarrah Resource Management – whose shareholders previously included Gatto's daughter and which has won work on Big Build road and rail upgrades. Read the exclusive story here. 7.00am Pope-bound PM affirms stance on religion By David Crowe and Paul Sakkal Prime Minister Anthony Albanese has cited his Catholic childhood as a key influence on his approach to government as he heads to Rome for the inaugural mass of Pope Leo XIV amid heightened attention on his faith. Albanese, whose mother was a devout Catholic, said that church teachings on helping the vulnerable had shaped his politics – and he revealed that they triggered a key moment in the election campaign. Speaking to this masthead on the Inside Politics podcast, the prime minister said the separation of church and state was one reason he was sworn into office with an affirmation rather than with a Bible. But he added that his 'no one left behind' mantra was underpinned by a moral imperative to use the tools of government to lift people up. Here's the full story. 7.00am Momentum builds for Liberal inquiry By Paul Sakkal Momentum is building within the Liberal Party to launch a special inquiry into its future as Coalition leaders Sussan Ley and David Littleproud jostle over the role of nuclear energy, risking a formal split of the parties. Littleproud travelled from Canberra to Albury to meet with Ley – who is in her hometown to be with her dying mother – about the future of the Coalition pact that allows them to create a joint shadow cabinet. Debate continues about whether the Coalition should retain its polarising plan to build nuclear reactors, a key line of attack for Labor during the campaign. Littleproud, whose party lobbied for the energy overhaul last term, is under pressure from his MPs to secure a guarantee to enshrine the nuclear policy in any agreement signed with Ley. 7.00am What you need to know Good morning, and welcome to our live coverage of today's national news stories. I'm Ben Cubby, and I'll be with you for the morning. It's Friday, May 16. Here's what's making news. Momentum is building in the Liberal Party to launch a special inquiry into its future, as Coalition leaders Sussan Ley and David Littleproud jostle over nuclear energy, risking a formal split. Ben Roberts-Smith will find out this morning if he has won his court bid to overturn a devastating defamation loss. Prime minister Anthony Albanese has spoken about his views on religious faith as he prepares to travel to Rome for the inaugural mass of Pope Leo XIV and hold meetings with world leaders. The vote count continues today, as Liberal Tim Wilson's lead over independent Zoe Daniel in the Melbourne seat of Goldstein narrows further. In Victoria, the state government is secretly mapping the infiltration of big infrastructure projects by firms with suspected underworld links and warning key contractors to cut ties with gangland figures. In NSW, the state's healthcare system risks being overwhelmed by an avalanche of ageing and chronically ill patients, a special commission report has found.
The Age
15-05-2025
- Politics
- The Age
Australia news LIVE: Coalition, division, PM heads to Rome, Roberts-Smith back in court
Latest posts 7.00am Underworld links in big building projects secretly mapped By Nick McKenzie Victoria's Allan government is secretly mapping the infiltration of Victoria's biggest infrastructure projects by firms with suspected links to the underworld while warning its key contractors to purge gangland figures from their supply chains. The moves are detailed in confidential documents from the state's peak infrastructure agency that reveal the government's concern about the reach of figures such as Mick Gatto and bikie enforcers into its sprawling multibillion-dollar Big Build program. One file includes a list of firms that officials suspect may be both gangland-linked and profiting – directly or indirectly – from taxpayer projects. They include Gatto and his construction industry consulting businesses along with the Gatto-linked traffic management firm Jarrah Resource Management – whose shareholders previously included Gatto's daughter and which has won work on Big Build road and rail upgrades. Read the exclusive story here. 7.00am Pope-bound PM affirms stance on religion By David Crowe and Paul Sakkal Prime Minister Anthony Albanese has cited his Catholic childhood as a key influence on his approach to government as he heads to Rome for the inaugural mass of Pope Leo XIV amid heightened attention on his faith. Albanese, whose mother was a devout Catholic, said that church teachings on helping the vulnerable had shaped his politics – and he revealed that they triggered a key moment in the election campaign. Speaking to this masthead on the Inside Politics podcast, the prime minister said the separation of church and state was one reason he was sworn into office with an affirmation rather than with a Bible. But he added that his 'no one left behind' mantra was underpinned by a moral imperative to use the tools of government to lift people up. Here's the full story. 7.00am Momentum builds for Liberal inquiry By Paul Sakkal Momentum is building within the Liberal Party to launch a special inquiry into its future as Coalition leaders Sussan Ley and David Littleproud jostle over the role of nuclear energy, risking a formal split of the parties. Littleproud travelled from Canberra to Albury to meet with Ley – who is in her hometown to be with her dying mother – about the future of the Coalition pact that allows them to create a joint shadow cabinet. Debate continues about whether the Coalition should retain its polarising plan to build nuclear reactors, a key line of attack for Labor during the campaign. Littleproud, whose party lobbied for the energy overhaul last term, is under pressure from his MPs to secure a guarantee to enshrine the nuclear policy in any agreement signed with Ley. 7.00am What you need to know Good morning, and welcome to our live coverage of today's national news stories. I'm Ben Cubby, and I'll be with you for the morning. It's Friday, May 16. Here's what's making news. Momentum is building in the Liberal Party to launch a special inquiry into its future, as Coalition leaders Sussan Ley and David Littleproud jostle over nuclear energy, risking a formal split. Ben Roberts-Smith will find out this morning if he has won his court bid to overturn a devastating defamation loss. Prime minister Anthony Albanese has spoken about his views on religious faith as he prepares to travel to Rome for the inaugural mass of Pope Leo XIV and hold meetings with world leaders. The vote count continues today, as Liberal Tim Wilson's lead over independent Zoe Daniel in the Melbourne seat of Goldstein narrows further. In Victoria, the state government is secretly mapping the infiltration of big infrastructure projects by firms with suspected underworld links and warning key contractors to cut ties with gangland figures. In NSW, the state's healthcare system risks being overwhelmed by an avalanche of ageing and chronically ill patients, a special commission report has found.
Sydney Morning Herald
15-05-2025
- Business
- Sydney Morning Herald
Underworld grip on Big Build sized up by government as contractors warned to purge suspect players
Armed federal agents searched the Thornbury home of Anthony Malcolm, who was last year appointed as director of a waste company the AFP suspects was used to collect payments from companies seeking support from figures within the CFMEU's construction arm, over which Gatto has long wielded influence. The CFMEU has in turn played a decisive role in which firms can secure contracts on major construction sites, including CBD developments and Big Build infrastructure projects. Federal police are investigating if payments to companies linked to Gatto and his gangland associates have been made to unlawfully secure union backing on large projects or involve potential money laundering or accounting offences. In March, the AFP raided Melbourne accountant Charles Pellegrino, who fronts several companies suspected to have received payments police suspect were intended for Gatto, Khoury or other construction industry or union players. No charges have been laid in connection to the investigation. There is no suggestion Malcolm, Pellegrino, Khoury or Gatto are guilty of any offence, only that police are investigating why construction firms are paying companies controlled by Pellegrino and Malcolm. Gatto and Khoury did not respond to inquiries but have previously denied wrongdoing. Malcolm was unable to be contacted by this masthead. An AFP spokesperson said Tuesday's raid formed 'part of the AFP's response to allegations of corruption in the Victorian building industry'. The leaked Victorian Infrastructure Delivery Authority (VIDA) files obtained by this masthead reveal the peak Big Build agency is, alongside the federal police and a host of other government bodies, seeking to combat the construction industry nepotism and corruption exposed in this masthead's Building Bad series. Six sources working with Big Build contractors, speaking anonymously to discuss confidential information, told this masthead that after the scandal erupted, Big Build and Labor officials were no longer encouraging contractors to acquiesce to CFMEU pressure. Some said they had previously warned the Allan government about the problems that have now sparked police investigations and industry reform, and seen the CFMEU plunged into administration. While sources said gangland figures were seeking to adapt to the Building Bad crackdown, the surge of recent scrutiny was 'bad for business'. This masthead can also reveal that Gatto has taken the extraordinary step of threatening to sue the CFMEU administrator's chief investigator, Geoffrey Watson, SC, claiming that Watson's public denouncement of Gatto had 'caused persons in the construction industry community to refuse to do business with Mr Gatto'. In a letter sent recently to Big Build contractors by VIDA's director-general, Kevin Devlin, the firms are urged to stamp out 'violence, bullying, harassment and intimidation' and refuse 'requests or demands for preferential treatment of contractors, subcontractors, suppliers or individuals'. Devlin, without identifying any individuals in his letter, has also demanded the Big Build contractors take 'all appropriate steps to prevent the presence of persons with known criminal associations on site' and implement 'robust controls' to combat risks of 'fraud and corruption by suppliers and subcontractors … [including] so-called 'ghost shifts', double dipping, inappropriate substitution of labour or materials and theft of materials'. Senior industry sources said Devlin was one of several senior public servants who had privately expressed frustration at how his previous warnings to the government about the problems on the Big Build had gone unheeded. VIDA has also created a secret list of suspected gangland-linked entities, which it is attempting to map across the Big Build as it seeks to have underworld-linked firms removed from government projects. Big Build companies have been asked by VIDA to check their supply chains and in some cases remove firms from Big Build projects. The VIDA list features multiple firms and individuals that are also separately being targeted in the federal police probe into payments linked to Gatto. One of those also named on the VIDA list is Big Build contractor Nick Maric, whose company LTE boasts on its website that it is helping construct the West Gate Tunnel. LTE has made multiple 'consulting' payments to the suspected front companies now under AFP investigation. 'LTE Construction Group have constructed nearly 1000 bored piles for bridge foundations, noise walls and other structures all socketing into hard basalt,' the company's website reads. 'This includes occupation works for bridge piles at the M80 interchange, night shift and weekend works as required by the project to meet program requirements.' In addition to Gatto and Khoury, Maric's business has connections to Comanchero outlaw bikie gang members involved in the construction sector and who are also named in the VIDA file: Bemir Saracevic and Krstomir Bjelogrlic. Maric denied any wrongdoing. The VIDA list also names a bikie associate and MC Labour manager, Matt Lunedei. MC Labour has won a half-billion-dollar contract to supply workers to the Metro Tunnel and was recently embroiled in a ghost-shift scandal involving two union delegates. CFMEU sources said MC Labour, which was known to have employed gangland and bikie figures on the Big Build, is poised to be thrown off the Metro Tunnel project and replaced with another labour hire provider. The VIDA documents also name Rangedale, a company that had made multiple payments to front companies linked to the underworld as it conducted major works on several Big Build sites. Big Build officials have begun requesting contractors examine their relationship with Rangedale, a move which sources said had led to Rangedale being ousted from government sites. Loading Asked about the list, a VIDA spokesperson said: 'Following recent reports of alleged illegal misconduct, checks were made on the identified individuals or entities to see if they were currently engaged on Big Build projects.' When pressed about how many of the identified firms were still on the Big Build, the spokesperson said: 'Recent reports of alleged illegal misconduct have been referred to Victoria Police and enquiries are ongoing. It would be inappropriate to sanction individuals without an appropriate process.' Also named on the VIDA files are several bikies – such as Joel Leavitt – who last year were sacked as Big Build CFMEU delegates but who continue to exercise influence over Big Build subcontractors. The VIDA list names two firms started recently by Leavitt, along with a construction health and safety firm founded recently by ex-Mongols bikie boss and union delegate Tyrone Bell in partnership with a former CFMEU organiser, who is also named individually on the VIDA list. While this masthead has uncovered no evidence that Bell and his business partner have managed to gain work via the Big Build, another figure on the VIDA list, Billy Mitris, (who does not have criminal convictions) was earlier this year still running two companies working on major government projects, including North East Link. Mitris, who has ties to underworld figures and sacked union boss Elias Spernovasilis, controls a labour hire firm called X-Forces, which has employed veterans on the North East Link project. Mitris gained access to the North East Link via his close connections within the CFMEU, sources said. In his letter, Devlin, the VIDA director-general, told Big Build contractors they must immediately report 'any known or suspected instances of … individuals or companies that you suspect may be of ill-repute being involved in or having connections to your projects'. 'VIDA can potentially exercise contractual powers to direct the removal of particular individuals from projects,' the letter says. 'Depending on the issue, it may also be appropriate for your organisation to report the matter to another body such as the Fair Work Ombudsman, Fair Work Commission, WorkSafe, Comcare, Independent Broad-based Anti-corruption Commission (IBAC), Labour Hire Authority, the CFMEU administrator or the Australian Competition and Consumer Commission (ACCC), all of whom have reporting channels available.'
The Age
15-05-2025
- Business
- The Age
Underworld grip on Big Build sized up by government as contractors warned to purge suspect players
Armed federal agents searched the Thornbury home of Anthony Malcolm, who was last year appointed as director of a waste company the AFP suspects was used to collect payments from companies seeking support from figures within the CFMEU's construction arm, over which Gatto has long wielded influence. The CFMEU has in turn played a decisive role in which firms can secure contracts on major construction sites, including CBD developments and Big Build infrastructure projects. Federal police are investigating if payments to companies linked to Gatto and his gangland associates have been made to unlawfully secure union backing on large projects or involve potential money laundering or accounting offences. In March, the AFP raided Melbourne accountant Charles Pellegrino, who fronts several companies suspected to have received payments police suspect were intended for Gatto, Khoury or other construction industry or union players. No charges have been laid in connection to the investigation. There is no suggestion Malcolm, Pellegrino, Khoury or Gatto are guilty of any offence, only that police are investigating why construction firms are paying companies controlled by Pellegrino and Malcolm. Gatto and Khoury did not respond to inquiries but have previously denied wrongdoing. Malcolm was unable to be contacted by this masthead. An AFP spokesperson said Tuesday's raid formed 'part of the AFP's response to allegations of corruption in the Victorian building industry'. The leaked Victorian Infrastructure Delivery Authority (VIDA) files obtained by this masthead reveal the peak Big Build agency is, alongside the federal police and a host of other government bodies, seeking to combat the construction industry nepotism and corruption exposed in this masthead's Building Bad series. Six sources working with Big Build contractors, speaking anonymously to discuss confidential information, told this masthead that after the scandal erupted, Big Build and Labor officials were no longer encouraging contractors to acquiesce to CFMEU pressure. Some said they had previously warned the Allan government about the problems that have now sparked police investigations and industry reform, and seen the CFMEU plunged into administration. While sources said gangland figures were seeking to adapt to the Building Bad crackdown, the surge of recent scrutiny was 'bad for business'. This masthead can also reveal that Gatto has taken the extraordinary step of threatening to sue the CFMEU administrator's chief investigator, Geoffrey Watson, SC, claiming that Watson's public denouncement of Gatto had 'caused persons in the construction industry community to refuse to do business with Mr Gatto'. In a letter sent recently to Big Build contractors by VIDA's director-general, Kevin Devlin, the firms are urged to stamp out 'violence, bullying, harassment and intimidation' and refuse 'requests or demands for preferential treatment of contractors, subcontractors, suppliers or individuals'. Devlin, without identifying any individuals in his letter, has also demanded the Big Build contractors take 'all appropriate steps to prevent the presence of persons with known criminal associations on site' and implement 'robust controls' to combat risks of 'fraud and corruption by suppliers and subcontractors … [including] so-called 'ghost shifts', double dipping, inappropriate substitution of labour or materials and theft of materials'. Senior industry sources said Devlin was one of several senior public servants who had privately expressed frustration at how his previous warnings to the government about the problems on the Big Build had gone unheeded. VIDA has also created a secret list of suspected gangland-linked entities, which it is attempting to map across the Big Build as it seeks to have underworld-linked firms removed from government projects. Big Build companies have been asked by VIDA to check their supply chains and in some cases remove firms from Big Build projects. The VIDA list features multiple firms and individuals that are also separately being targeted in the federal police probe into payments linked to Gatto. One of those also named on the VIDA list is Big Build contractor Nick Maric, whose company LTE boasts on its website that it is helping construct the West Gate Tunnel. LTE has made multiple 'consulting' payments to the suspected front companies now under AFP investigation. 'LTE Construction Group have constructed nearly 1000 bored piles for bridge foundations, noise walls and other structures all socketing into hard basalt,' the company's website reads. 'This includes occupation works for bridge piles at the M80 interchange, night shift and weekend works as required by the project to meet program requirements.' In addition to Gatto and Khoury, Maric's business has connections to Comanchero outlaw bikie gang members involved in the construction sector and who are also named in the VIDA file: Bemir Saracevic and Krstomir Bjelogrlic. Maric denied any wrongdoing. The VIDA list also names a bikie associate and MC Labour manager, Matt Lunedei. MC Labour has won a half-billion-dollar contract to supply workers to the Metro Tunnel and was recently embroiled in a ghost-shift scandal involving two union delegates. CFMEU sources said MC Labour, which was known to have employed gangland and bikie figures on the Big Build, is poised to be thrown off the Metro Tunnel project and replaced with another labour hire provider. The VIDA documents also name Rangedale, a company that had made multiple payments to front companies linked to the underworld as it conducted major works on several Big Build sites. Big Build officials have begun requesting contractors examine their relationship with Rangedale, a move which sources said had led to Rangedale being ousted from government sites. Loading Asked about the list, a VIDA spokesperson said: 'Following recent reports of alleged illegal misconduct, checks were made on the identified individuals or entities to see if they were currently engaged on Big Build projects.' When pressed about how many of the identified firms were still on the Big Build, the spokesperson said: 'Recent reports of alleged illegal misconduct have been referred to Victoria Police and enquiries are ongoing. It would be inappropriate to sanction individuals without an appropriate process.' Also named on the VIDA files are several bikies – such as Joel Leavitt – who last year were sacked as Big Build CFMEU delegates but who continue to exercise influence over Big Build subcontractors. The VIDA list names two firms started recently by Leavitt, along with a construction health and safety firm founded recently by ex-Mongols bikie boss and union delegate Tyrone Bell in partnership with a former CFMEU organiser, who is also named individually on the VIDA list. While this masthead has uncovered no evidence that Bell and his business partner have managed to gain work via the Big Build, another figure on the VIDA list, Billy Mitris, (who does not have criminal convictions) was earlier this year still running two companies working on major government projects, including North East Link. Mitris, who has ties to underworld figures and sacked union boss Elias Spernovasilis, controls a labour hire firm called X-Forces, which has employed veterans on the North East Link project. Mitris gained access to the North East Link via his close connections within the CFMEU, sources said. In his letter, Devlin, the VIDA director-general, told Big Build contractors they must immediately report 'any known or suspected instances of … individuals or companies that you suspect may be of ill-repute being involved in or having connections to your projects'. 'VIDA can potentially exercise contractual powers to direct the removal of particular individuals from projects,' the letter says. 'Depending on the issue, it may also be appropriate for your organisation to report the matter to another body such as the Fair Work Ombudsman, Fair Work Commission, WorkSafe, Comcare, Independent Broad-based Anti-corruption Commission (IBAC), Labour Hire Authority, the CFMEU administrator or the Australian Competition and Consumer Commission (ACCC), all of whom have reporting channels available.'
