By Ashoka Peiris, source from The Age
The Victorian state government in Australia has launched giant Metro Tunnel project that has been corrupted by Forestry and Maritime Employees Union (CFMEU) delegates. Working for the state’s biggest labour hire firm, sparking the sacking of union delegates and an urgent investigation into the extent of a “ghost shifts” scam on one of Labor’s signature projects.
Reporters Sarah Dankert and Nick Mackenzie provided details for ‘The Age’. As they point out, with both the union and the company supporting the sacking of two delegates this week and the launching of probes to uncover the extent of the fraud against the taxpayer.
The ghost shifts – a practice where subcontractors filed fake invoices for workers’ shifts that never worked, which increased the overall project cost to the taxpayers – were discovered by project partner John Holland, the key construction company working on the $15 billion tunnel project. These kinds of fraudulent transactions took place within the Rajapaksa-Ranil political junta before the current Sri Lankan President Anura Kumara Dissanayake took power.
To clearly understand, the labour hire firm implicated is MC Labour – a major player in Victoria’s construction sector. With union backing, it has operated a near-monopoly of labour hire supply on the Metro Tunnel site, sparking concern from industry insiders that the ghost shift scandal could have already cost the taxpayer millions of dollars.
A spokesman for the Victorian government has confirmed the matter was under investigation and could be referred to the police. According to that spokesperson, “We are aware CYP D&C [Cross Yarra Partnership Design and Construction] Joint Venture is currently undertaking an urgent investigation and if there were any criminal activity involved, it will be referred to the Victoria Police,” he said.
“These allegations are extremely serious and deeply concerning.”
“If there are any additional costs as a result of these allegations they will be borne by the consortium.”
Three senior sources familiar with the matter, who spoke on the condition of anonymity, also confirmed the sackings of the CFMEU delegates and MC Labour’s alleged involvement. One of those sources said the alleged rort had potentially cost the taxpayer “many millions”, while another said it was a sum much lower.
While multiple stories in media outlets have detailed “ghost shift” allegations on various Labor Big Build sites, it is the first time those believed to be responsible have been sacked.