Fresh allegations surrounding Victoria’s multi-billion-dollar Big Build infrastructure program have intensified political pressure on Premier Jacinta Allan, with the Opposition arguing the latest claims strengthen the case for a Royal Commission into alleged corruption involving the Construction, Forestry and Maritime Employees Union (CFMEU) and major government projects.

The latest controversy centres on claims made by former Victorian Health Building Authority (VHBA) executive director Stephen King, who alleges government officials pressured public servants to remove a plastering subcontractor from a major hospital redevelopment after the company fell into dispute with the CFMEU.

King, who previously oversaw high-value and high-risk health infrastructure projects, told The Age that he was instructed the subcontractor should be removed because of pressure being exerted on the government by the union. Two former officials have reportedly supported aspects of his account.

The allegations relate to the approximately $320 million redevelopment of Melbourne’s Royal Victorian Eye and Ear Hospital, one of many projects delivered under Victoria’s broader Big Build infrastructure program.

Premier Jacinta Allan has firmly rejected the claims.

Responding to questions from reporters, Allan said the media reports were incorrect and maintained the dispute was a commercial matter between contractors rather than an intervention directed by government.

She said mediation processes—not ministerial direction—ultimately resulted in the parties separating and denied the government had instructed that any subcontractor be removed.

When asked why a senior former public servant would make such allegations, Allan declined to speculate, instead repeating that official advice received by her government indicated the claims were unfounded.

The Premier also encouraged anyone possessing evidence of wrongdoing to provide it to Victoria Police or other appropriate authorities.

Those responses have done little to quiet growing political controversy.

Opposition Leader Jess Wilson has renewed calls for a Royal Commission, arguing only an independent inquiry with compulsory powers can establish the full extent of alleged corruption involving government projects, organised crime figures and elements of the CFMEU.

The Opposition contends existing police investigations focus primarily on potential criminal conduct rather than broader questions about government decision-making, procurement practices and political accountability.

The latest allegations emerge against the backdrop of a much wider scandal that has dominated Victorian politics throughout the past year.

Investigations into the Victorian branch of the CFMEU have alleged organised crime infiltration, intimidation, extortion and unlawful influence over major taxpayer-funded construction projects.

Former Victorian CFMEU secretary John Setka resigned in 2024 following extensive reporting into alleged misconduct, after which the union’s construction division was placed into administration by the Commonwealth Government.

A report prepared by Geoffrey Watson SC for the union’s administrator alleged corruption associated with the Big Build may have cost Victorian taxpayers as much as $15 billion.

Watson argued criminal conduct and corrupt practices inflated construction costs well beyond normal increases caused by inflation or supply-chain pressures.

That estimate has become one of the most disputed elements of the wider controversy.

The Victorian Government has challenged both the methodology and conclusions behind the figure, arguing there is insufficient evidence to support the claimed financial impact.

Allan has acknowledged that criminal behaviour occurred on some construction sites but has consistently rejected suggestions that the estimate represents an established or independently verified cost to taxpayers.

The Premier has also repeatedly refused demands for a Royal Commission.

Instead, the government argues existing law enforcement agencies already possess appropriate powers to investigate allegations of criminal conduct.

Victoria Police has laid numerous criminal charges arising from investigations into construction industry corruption, while the government has strengthened labour hire regulation, cancelled licences and introduced additional reporting requirements for contractors working on publicly funded projects.

Supporters of a Royal Commission argue those measures do not answer broader questions about how alleged corruption was able to develop over many years or whether government agencies responded appropriately to warning signs.

Former Victorian Ombudsman Deborah Glass and former IBAC commissioner Robert Redlich are among those who have publicly supported an independent inquiry, describing the allegations as potentially one of the most significant public integrity issues Victoria has faced in decades.

The latest hospital project allegations have therefore become part of a much larger political debate.

According to King, the issue was not simply a dispute between private companies but an example of inappropriate influence allegedly being exercised over government decision-making.

The government strongly disputes that interpretation and maintains there is no evidence that ministers directed public servants to act on behalf of the union.

Because no Royal Commission or court has tested King’s allegations, they remain disputed.

Political pressure has nevertheless intensified as Victoria moves closer to the state election.

Opinion polling has shown Labor facing increasing electoral challenges after more than a decade in government, with corruption allegations becoming one of the Opposition’s principal campaign issues.

The Coalition has committed that, if elected, it would establish a Royal Commission into the Big Build and the broader allegations surrounding the CFMEU’s influence over publicly funded construction projects.

Labor rejects suggestions that refusing a Royal Commission demonstrates an unwillingness to investigate wrongdoing.

Ministers argue that independent police investigations, criminal prosecutions and regulatory reforms are more appropriate mechanisms than a broad public inquiry, particularly while criminal investigations remain active.

The debate highlights the competing approaches now shaping Victorian politics.

The Opposition argues only a Royal Commission can restore public confidence by compelling witnesses to give evidence under oath and examining both alleged criminal conduct and government decision-making.

The government maintains that existing investigative bodies are already performing that role and warns against duplicating ongoing investigations for political purposes.

For Victorian voters, the allegations have become intertwined with broader concerns about infrastructure costs, government accountability and integrity in public administration.

With the election approaching and new allegations continuing to emerge, the controversy surrounding the Big Build is likely to remain one of the defining political issues of the campaign.

Whether those allegations ultimately lead to a Royal Commission—or continue to be investigated through existing law enforcement and regulatory agencies—will remain a central point of difference between Labor and the Coalition in the months ahead.