Minister demands answers from authority following corruption allegations

Victorian Health Infrastructure Minister Melissa Horne has formally requested assurances from the Victorian Infrastructure Delivery Authority (VIDA) concerning allegations of union interference on state construction sites. Horne's letter follows reports that the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU) allegedly exerted influence during the redevelopment of the Royal Victorian Eye and Ear Hospital.

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Those reports are wrong. There is no evidence or basis for that claim.

The allegations, reported by The Age, stem from claims by former Victorian Health Building Authority (VHBA) executive director Stephen King. King alleged he faced improper pressure from the government to comply with the construction union's demands, specifically regarding the removal of a subcontractor from the hospital's redevelopment project. The $317.8 million redevelopment was completed in 2024.

Premier Jacinta Allan has publicly refuted these claims, asserting that the reports are incorrect and lack any evidence or basis. "Those reports are wrong. There is no evidence or basis for that claim," Allan stated. She further clarified that any dispute was between the head contractor and the subcontractor and did not involve the government.

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These allegations of interference are deeply concerning.

However, Minister Horne, who assumed her role after the hospital's reconstruction, expressed deep concern over the "alarming allegations" of interference. Her letter seeks confirmation that VIDA Health, as the successor to VHBA, has not directed the removal of any contractors or subcontractors on health infrastructure projects, except where legally permissible. This move has been interpreted by some Labor MPs as a subtle criticism of the Premier's response, fueling internal speculation about the necessity of a royal commission to investigate the saga.

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I seek your assurance that VIDA Health (as the successor to VHBA) has not directed the removal of any contractors or sub-contractor on health infrastructure projects, except for where legally permitted to do so.