Breaking: Royal commission probing construction sector corruption in Victoria opens

The royal commission into corruption in Victoria's construction sector has begun with its first open hearing in Melbourne.The hearing, in the Melbourne Magistrates' Court, has addressed the inquiry's terms of reference, and is expected to detail the next steps before witnesses are called at later hearings.Associate to the commissioner Peter Tantalos kicked off proceedings by reading out a long letters patent that established the inquiry and its scope.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" on major public infrastructure projects in Victoria including those of the government's signature Big Build initiative.The royal commission will also investigate circumstances where there had been a lack of adherence to proper process, improper influence, favouritism or nepotism, he 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". "The terms of reference are broad. They are expansive. Nothing is off limits," he said last month.The Victorian branch of the CFMEU will be at the centre of investigations by the royal commission. (ABC News)They include the extent of corruption on major infrastructure projects, the effectiveness of oversight from government bodies and actions contractors took to mitigate risks. Former South Australian Supreme Court chief justice Christopher Kourakis is heading up the commission, which has a budget of $50 million.In August, Mr Kourakis said the commission would be looking at issues "very important to all Victorians"."I am deeply conscious of the responsibility with which I have been entrusted," he said in a statement released through the Department of Premier and Cabinet."The royal commission will undertake its work independently and rigorously. "We will follow the evidence and ensure our processes are fair, thorough and transparent."The royal commission is being headed by former Chief Justice of South Australia Chris Kourakis. (ABC News: Lincoln Rothall)Mr Carroll committed to the royal commission after toppling his predecessor Jacinta Allan, who had long refused to call an inquiry despite internal pressure.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. These are the most comprehensive, broadest terms possible," he said in August."We're going to make sure that we leave no stone unturned."Former premiers Daniel Andrews and Jacinta Allan may be called to appear before the commission. (AAP Image: Daniel Pockett)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.Mr Watson estimated that the actions of the CFMEU had cost the Victorian taxpayer around $15 billion — a figure that was strongly disputed by Ms Allan at the time.An explosive report by Geoffrey Watson SC estimated the actions of the Victorian branch of the CFMEU cost taxpayers $15 billion.Mr Watson said the terms of reference for the royal commission were "really excellently done" and he dismissed criticism by the Victorian opposition."I think they're very well designed, quite targeted, and sufficiently specific," he said."I think it's a mistake for people to go out and start undermining confidence in the commission before it starts. "After all, this is a process through which we're hoping the confidence in government will be rebuilt. Now, why criticise it at this time? I do not know why, and I might make another point: the criticism is incorrect."The commission is expected to report to the state government by August next year.