WEBVTT - Nick McKenzie on CFMEU corruption and Labor’s blind eye

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<v Speaker 1>Having been in the trenches investigating this corruption scandal for

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<v Speaker 1>two years, I mean my capacity for shop is probably

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<v Speaker 1>somewhat less than the average person.

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<v Speaker 2>Nick mackenzie has been digging into allegations of corruption in

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<v Speaker 2>the CFMEU Construction Union since twenty twenty four. It's a

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<v Speaker 2>powerful union meant to protect workers. Instead it's been accused

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<v Speaker 2>of running a racket with Biki gangs and criminals ripping

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<v Speaker 2>billions of dollars out of government funded projects. Now a

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<v Speaker 2>report has laid bare the scale of it all.

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<v Speaker 1>We've looked at a Biki gang infiltrating a government job

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<v Speaker 1>over here, We've looked at Italian organized crime infiltrating a

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<v Speaker 1>government project over there. But to see it all in

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<v Speaker 1>one place, it was a tremendous dumping of shocking allegation,

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<v Speaker 1>shocking conclusions, all leading in one direction. Which is why

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<v Speaker 1>the hell was this allowed to go on at such

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<v Speaker 1>scale and why has no one in a political class

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<v Speaker 1>been held to account.

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<v Speaker 2>The report's author, Barrister Jeffrey Watson, not only tore the

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<v Speaker 2>cfm E you to shreds, but also claimed the Victorian

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<v Speaker 2>government knew about the problems and did nothing about it.

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<v Speaker 3>So if somebody had stomped on it earlier, the problem

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<v Speaker 3>would have been fixed earlier. Now who had that responsibility?

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<v Speaker 3>Bearing in mind these were government projects, Bearing in mind

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<v Speaker 3>these were taxpayers dollars being spent.

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<v Speaker 2>But that section of Watson's report, the question the Victorian

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<v Speaker 2>labor government, was deleted before the report was published.

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<v Speaker 3>You wouldn't believe this by looking up people. But I

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<v Speaker 3>am a very bad tempered, petulant person, and I can

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<v Speaker 3>erupt at a moment's notice, and I was really actually

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<v Speaker 3>quite angry.

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<v Speaker 4>So is this a cover up?

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<v Speaker 2>I'm Nicole Johnston and you're listening to seven AM today

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<v Speaker 2>nine Newspapers investigative reporter Nick McKenzie on contracts, kickbacks and

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<v Speaker 2>building site strippers. How did the rod take route in

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<v Speaker 2>the construction industry. It's Tuesday, February seventeen.

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<v Speaker 3>Nick.

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<v Speaker 2>It's about two years ago since you first broke the

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<v Speaker 2>story of what you called an unholy alliance between gangland

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<v Speaker 2>figures and the CFMU. You know, bikeys, gangsters infiltrating unions

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<v Speaker 2>and given powerful positions, often on those government funded projects.

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<v Speaker 2>Now we've found out that there's even more going on.

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<v Speaker 1>What do we know, Well, it's it's like a bad,

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<v Speaker 1>sort of crazy Hollywood script. The latest set of allegations

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<v Speaker 1>in terms of the depth of criminal infiltration, of the

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<v Speaker 1>involvement of bikis, of bribery, of corruption, and drug trafficking

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<v Speaker 1>on government sites, women allegedly being forced to perform sex

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<v Speaker 1>acts to get work, or stripping in site sheds. But

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<v Speaker 1>at the core of all this, and perhaps most seriously,

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<v Speaker 1>is this conclusion from an anti corruption expert that the

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<v Speaker 1>Victorian labor government not only had a duty to know

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<v Speaker 1>this was going on in their government projects, but did

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<v Speaker 1>know and did nothing about it. So it turned a

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<v Speaker 1>blind eye effectively, and the cost of this failure to

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<v Speaker 1>combat this crime and corruption, according to this anti cruption expert,

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<v Speaker 1>Jeffrey Watson SC is a studying fifteen billion dollars in

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<v Speaker 1>Victorian taxpayer and federal taxpayer money.

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<v Speaker 2>So all of this came out of the Queensland Inquiry

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<v Speaker 2>into CFMU corruption where Jeffrey Watson testified. Can you tell

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<v Speaker 2>us a bit more about what he said?

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<v Speaker 1>Well, Jeffy Watson sc is a very well known corruption buster.

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<v Speaker 1>He's best known previously for his work with the Ikak

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<v Speaker 1>in New South Wales, bringing down both labor and liberal

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<v Speaker 1>politicians and political figures, and what's his job is really

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<v Speaker 1>what is the scale, what is the scope of the

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<v Speaker 1>corruption of the c if me, what's happened, what's gone wrong?

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<v Speaker 1>He testified to reveal for the first time the findings

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<v Speaker 1>of this big eighteen month inquiry into what went wrong

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<v Speaker 1>in Victoria.

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<v Speaker 4>How bad did things get in Victoria?

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<v Speaker 3>Oh my god, it's out of control.

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<v Speaker 1>So that happened last week and it was absolutely stunning

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<v Speaker 1>because what Watson found is breathtaking. I've never read a

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<v Speaker 1>corruption report quite so jaw dropping as Watson's report gone.

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<v Speaker 1>As all this sort of polite language, it's just a

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<v Speaker 1>catalog of shocking biky corruption, union corruption, corporate corruption.

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<v Speaker 3>A man who had killed somebody was released from jail

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<v Speaker 3>and almost immediately appointed a health and safety representative of

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<v Speaker 3>the Victorian branch of the CFU.

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<v Speaker 1>He was extremely force, right on the stand, laying out

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<v Speaker 1>who the baddies are, calling out gangland figures such as

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<v Speaker 1>Mick gadovery infamous gangland figure, and really, I think, pointedly

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<v Speaker 1>and importantly describing how parts of his report had been

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<v Speaker 1>changed to remove a politically sensored material or something that

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<v Speaker 1>he said he was very angry about. And that's content

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<v Speaker 1>that reflected poorly, mostly in the Victoria Labor government.

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<v Speaker 2>Who took them out?

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<v Speaker 1>And why that they were removed by the sea from

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<v Speaker 1>the administrative marker of in case now, he's a senior barrister.

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<v Speaker 1>He was appointed by the Albanese government when our allegations

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<v Speaker 1>first hit the press back in twenty twenty four. Irving's

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<v Speaker 1>job is to take over the union, to get rid

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<v Speaker 1>of the old ruling part of the union, to sack

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<v Speaker 1>a bunch of officials for poor performance, for corruption, etc.

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<v Speaker 4>And he's done that.

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<v Speaker 1>But in this case, and keeping in mind is a

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<v Speaker 1>Labor Party appointee, he stripped these two critical parts of

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<v Speaker 1>the report that were most damaging to labor. Irving says

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<v Speaker 1>he removed those parts of the report because he felt

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<v Speaker 1>they were ill founded. There wasn't a basis for which,

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<v Speaker 1>a proper basis for which Jeffrey Watchin should estimate that

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<v Speaker 1>fifteen billion dollars of taxpayer money was wasted or ended

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<v Speaker 1>up in the pockets of biky Games.

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<v Speaker 3>Sure, it's speculative. It's speculative to say the sun will

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<v Speaker 3>come up tomorrow. When you read the simple points which

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<v Speaker 3>I had made in the original version of the report,

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<v Speaker 3>I would have thought the primary criticism of it would

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<v Speaker 3>have been that it was a statement of the bleeding obvious.

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<v Speaker 1>The head of the Fair Work Commission, Murray Furlong, as

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<v Speaker 1>a public servant, has backed that figure most recently.

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<v Speaker 4>That figure is.

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<v Speaker 3>Is consistent with what I've heard from officials from the

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<v Speaker 3>Victorian government.

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<v Speaker 1>And this is where it's really serious, I think, not

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<v Speaker 1>just for Irving, but for labor federally in state. What

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<v Speaker 1>we're seeing is that this scandal has gone so far.

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<v Speaker 1>We know that corrupt union officials have been operating it.

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<v Speaker 1>I've been turfed out, we know Gangland figures are deeply involved,

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<v Speaker 1>they've been exposed, But not a single public servant and

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<v Speaker 1>not a single politician has been meaningfully held to account

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<v Speaker 1>for their role overseeing projects where all this bad behavior

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<v Speaker 1>took place at the expense the taxpayer. And that's the

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<v Speaker 1>big missing part here and that's what I think the

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<v Speaker 1>removal of these parts of this report really underscores, you know,

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<v Speaker 1>all the accountability that we're yet to see in this

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<v Speaker 1>rolling and still very big scandal.

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<v Speaker 2>So Nick, would you go as far to say that

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<v Speaker 2>this is a cover up? And is there any doubt

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<v Speaker 2>in your mind that the Victorian government new organized crime

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<v Speaker 2>had infiltrated government projects and then didn't act.

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<v Speaker 1>Well, there's two choices, isn't there The government was either

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<v Speaker 1>so incompetent it didn't know biking bosses were working on

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<v Speaker 1>its projects, or it knew and turn a blind eye.

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<v Speaker 1>They're the two choices. I think about this. If your

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<v Speaker 1>listeners are building a house and one day one of

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<v Speaker 1>the subcontractors building and doing the tiling is replaced by

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<v Speaker 1>a biker who rocks up and charges w amount, I

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<v Speaker 1>mean you'd likely be making some pretty serious inquiries about

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<v Speaker 1>why that's going on. It's the same thing was happening

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<v Speaker 1>on state government projects, except at a vastly greater scale.

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<v Speaker 4>So how could the not know about that? Edit duties

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<v Speaker 4>know about that taxpayer money.

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<v Speaker 1>It's responsible for making sure organized crime doesn't take hold.

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<v Speaker 1>There is a huge amount of evidence that shows the government,

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<v Speaker 1>to some extent at least did know this was going on.

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<v Speaker 1>We know there's documents internally which raise allegations of blackmail, extortion, and.

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<v Speaker 4>Now it's saying it didn't know.

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<v Speaker 1>The Premier of Victoria just interallled and saying I didn't

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<v Speaker 1>know until it hit the media. I mean that is

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<v Speaker 1>quite clearly, blogoney. So certainly we deserve to know how

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<v Speaker 1>much the government knew. We deserve to know the extent

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<v Speaker 1>of that government in competence and failure to act on

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<v Speaker 1>organized crime. And while we don't know, there's a cover

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<v Speaker 1>up in place, and that cover up remains in place

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<v Speaker 1>as I speak here.

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<v Speaker 2>Right now, coming up, how far has the rot spread

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<v Speaker 2>outside Victoria? So, Nick, what has the Victorian government said

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<v Speaker 2>about the allegation so far?

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<v Speaker 4>Have they said anything? Whenever we reveal.

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<v Speaker 1>More of this corruption and crime we hear the same

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<v Speaker 1>thing or terrible. We don't like corruption and crime, says

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<v Speaker 1>the Victorian premier in the government. It's appalling. It should

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<v Speaker 1>be referred to the authorities. And they said that again

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<v Speaker 1>last week in response to this latest eruption.

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<v Speaker 5>When allegations were raised with me, they were referred to

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<v Speaker 5>the relevant authority for their investigation. I have said that

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<v Speaker 5>on previous occasions. Then when the media reports around the

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<v Speaker 5>widespread nature of this rotten culture became public in the

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<v Speaker 5>middle of twenty twenty four, we acted immediately.

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<v Speaker 1>It just handles this shit samage to the Victorian police

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<v Speaker 1>and to other authorities and says, well, you make of

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<v Speaker 1>it what you will. That's never going to get to

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<v Speaker 1>the bottom of this. I mean, the Victorian Police do

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<v Speaker 1>a fine job, but like every state police force around

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<v Speaker 1>this country, they're utterly stretched. And it's not the job

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<v Speaker 1>of the Victorian police to ask the question order to

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<v Speaker 1>answer it. What did politicians know about corruption? Did they

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<v Speaker 1>enable it by failing to act on it? What do

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<v Speaker 1>the bureaucrats know about corruption? How did this corruption work?

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<v Speaker 1>That These are questions that for well outside the duties

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<v Speaker 1>of the Victoria Police Force. Their question is normally left

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<v Speaker 1>for some proper inquiry, a commission of inquiry, a royal commission.

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<v Speaker 1>So while there is a strong comment from Victoria Labor government,

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<v Speaker 1>it's actually very very weak in substance.

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<v Speaker 4>And let's not forget this.

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<v Speaker 1>The minister responsible for many of these projects while they

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<v Speaker 1>were hosting this corruption and crime wasn't another than the

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<v Speaker 1>Premier just Cinter Allen. She was the Transport and Infrastructure

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<v Speaker 1>minister in charge of these major government projects. While the

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<v Speaker 1>infiltration of organized crime, of biokis, of corrupt unionits occurred,

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<v Speaker 1>it happened under her watch. And so that system of

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<v Speaker 1>Westminster accountability, the bucks should stop at the top. And

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<v Speaker 1>that might be the reason why we're not having a

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<v Speaker 1>proper system of accountability in place to ask those critical

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<v Speaker 1>questions who in government knew what and when and why

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<v Speaker 1>didn't they act.

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<v Speaker 2>A lot of the focus has been on what's been

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<v Speaker 2>going on in Victoria's CFMU, but Queensland, as we know,

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<v Speaker 2>is looking into the union there as well. It's had

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<v Speaker 2>its own commission of inquiry. So how widespread do you

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<v Speaker 2>think corruption is across the construction industry.

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<v Speaker 4>It's vastly widespread.

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<v Speaker 1>We've seen very significant cases of organized crime infiltration and

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<v Speaker 1>corp union operations in New South Wales, to a lesser extent, Queensland,

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<v Speaker 1>and certainly to a massive extent in Victoria. There's issues

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<v Speaker 1>in WA, there's issues in South Australia. This has been

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<v Speaker 1>a festering problem in Australia for decades. But there is

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<v Speaker 1>some silver linings the Victorian police. The police in Victoria

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<v Speaker 1>are doing a good job finally having a.

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<v Speaker 4>Crack at some of these criminal elements.

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<v Speaker 1>But the same thing is not happening in New South

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<v Speaker 1>Wales and Queensland and elsewhere where.

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<v Speaker 4>Why is it such a problem.

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<v Speaker 1>Well, we've had decades long issue of organized crime of

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<v Speaker 1>union corruption on construction sites. It must be said that

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<v Speaker 1>this can't happen without corrupt corporates. This is as much

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<v Speaker 1>a union problem as it is a company problem, and

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<v Speaker 1>it's a problem that we've seen overseas, most famously in

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<v Speaker 1>the United States, the FBI had mega task forces set

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<v Speaker 1>up to crack down on the unions working with the

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<v Speaker 1>mafia in New York and other places to corrupt the

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<v Speaker 1>construction industry there.

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<v Speaker 4>So we're group of it. In Australia.

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<v Speaker 1>It's starting to have some real political consequence now and

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<v Speaker 1>maybe now this is the moment for change. Will we

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<v Speaker 1>have a proper cleanup of the sector, this vital sector

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<v Speaker 1>in Australia or will in five years will we be

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<v Speaker 1>reading the very same headlines we've been reading most recently.

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<v Speaker 2>Nick, since you started investigating this a couple of years ago.

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<v Speaker 2>There have been some attempts to clean up the industry,

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<v Speaker 2>but from what you're saying, it sounds like nothing's really changed.

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<v Speaker 1>I mean there are there has been some significant change

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<v Speaker 1>of that must be said. So the bosses of the

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<v Speaker 1>c for me, you that oversaw this corrupt mess, this

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<v Speaker 1>infiltration of organized crime into government projects, they've been turfed out,

0:13:05.200 --> 0:13:08.760
<v Speaker 1>They've left John Sector's gone, his executive.

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<v Speaker 4>Has gone in New South Wales.

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<v Speaker 1>Darren Greenfield, the former boss of this evening, he literally

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<v Speaker 1>is sitting in jail right now for taking bribes. So

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<v Speaker 1>we've had some corrupt elements removed, but what we've not

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<v Speaker 1>had is a proper, in depth cleanup of the sort

0:13:22.520 --> 0:13:26.240
<v Speaker 1>that will lead to sustainable, long term change. Companies that

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<v Speaker 1>have been part of this racket, they've faced a zero accountability.

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<v Speaker 1>Largely police aren't doing enough. There is some good work

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<v Speaker 1>by the federal police. There's some great work by the

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<v Speaker 1>Victorian police. But around the country the police it's like

0:13:41.120 --> 0:13:44.440
<v Speaker 1>squeezing water with your hands, you just displace it. There's

0:13:44.480 --> 0:13:47.480
<v Speaker 1>not enough police action, there's not enough regulatory action, there's

0:13:47.520 --> 0:13:48.200
<v Speaker 1>not enough a.

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<v Speaker 4>System wide cleaner. Why does this matter?

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<v Speaker 1>I mean, this is money that me and you are

0:13:53.320 --> 0:13:56.960
<v Speaker 1>spending as taxpayers on these government projects. So our money

0:13:57.040 --> 0:13:59.680
<v Speaker 1>is being wasted. It could be going into health, education,

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<v Speaker 1>ex it's not. It's going to the pockets of bikis.

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<v Speaker 1>We want a fair and level playing field for businesses,

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<v Speaker 1>for workers in construction. Everybody listened to this will know

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<v Speaker 1>somebody in one way or another who works in.

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<v Speaker 4>The construction industry.

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<v Speaker 1>It's a massive employer in this country, from the lowly

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<v Speaker 1>workers holding traffic signs, to subcontractors to big building companies

0:14:19.480 --> 0:14:23.000
<v Speaker 1>to union officials. It's a vast part of our economy

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<v Speaker 1>and we deserve it to be clean. It shouldn't be

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<v Speaker 1>infiltrated by organized crime. But perhaps the biggest reason is

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<v Speaker 1>when we have a corrupt union infects government, it leads

0:14:33.920 --> 0:14:35.280
<v Speaker 1>for bad political outcomes.

0:14:35.320 --> 0:14:37.280
<v Speaker 4>It leads for people in parliament who should not be

0:14:37.360 --> 0:14:37.880
<v Speaker 4>in parliament.

0:14:37.920 --> 0:14:40.520
<v Speaker 1>To see, if me, you sponsored people into our states

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<v Speaker 1>and federal parliaments for many years, should they be there.

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<v Speaker 1>So we as voters were as citizens, deserve better and

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<v Speaker 1>we deserve a proper clean out.

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<v Speaker 4>And that's why it's so important.

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<v Speaker 2>Nick, thanks for speaking with us. Also in the news,

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<v Speaker 2>Navid Akrim, the man accused of taking part in the

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<v Speaker 2>Bondai terror attack, has appeared at a Sydney court via

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<v Speaker 2>video link. The twenty four year old faces fifty nine charges,

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<v Speaker 2>including fifteen counts of murder and one of committing a

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<v Speaker 2>terrorist attack over the shooting in December. Akram's father was

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<v Speaker 2>shot dead by police at the scene of the attack,

0:15:28.160 --> 0:15:31.200
<v Speaker 2>which took place during a Jewish Harniker by the Sea event.

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<v Speaker 2>Akram's lawyer says it's too early to say how his

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<v Speaker 2>climb will plead and supermarket giant Coles has been accused

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<v Speaker 2>of a planned campaign to mislead customers over price discounts.

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<v Speaker 2>In a case now before the federal court, the consumer

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<v Speaker 2>watchdog the A Triple C is suing the supermarket, claiming

0:15:50.760 --> 0:15:53.960
<v Speaker 2>it ripped off customers by hiking prices for a short

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<v Speaker 2>period of time before dropping them for their down Down promotion.

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<v Speaker 2>Coles argues the price rises were justified, citing high inflation

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<v Speaker 2>and supply demands. I'm Nicole Johnston. This is seven a m.

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<v Speaker 2>Catch you tomorrow.