Labor and police clash over reporting ‘semantics’ of alleged $6m scam

The Allan government and Victoria Police are at loggerheads over whether transport department officials formally reported to police a $6 million fraud allegedly attempted by a contractor on the Metro Tunnel rail project.

A police taskforce recently launched an investigation into the alleged October 2024 deception, in which employees of Swiss company Schindler Group claimed $6 million to replace escalators damaged by flooding in the new Metro Tunnel CBD train stations, but which were never replaced.

After The Age first revealed the alleged rip-off in February, Victoria Police said it was “advised” of the incident in November 2025, but that Big Build officials and the project’s lead contractor did not make a “formal report”. The police investigation only began after the alleged corruption was reported publicly and police received further information.

Premier Jacinta Allan and Transport Infrastructure Minister Gabrielle Williams batted away questions on Monday about whether government officials ever made a criminal referral to police.

Williams told a budget estimates hearing that she first learnt of the alleged fraud in November 2025 from Victorian Infrastructure Delivery Authority (VIDA) bureaucrats, who she said told her they had already made a “referral” to police on November 21.

“I was notified that an incident had taken place, the nature of that and that a referral had been made,” she said during Monday’s public accounts and estimates committee hearing.

The government’s response to revelations of Big Build rorting and criminal infiltration is that misconduct should be reported to and dealt with by police.

Nationals committee member Jade Benham put to Williams there was a “very big difference” between a referral to Victoria Police and a formal report of criminality.

“I’m not sure if it’s helpful to enter into a debate around semantics,” Williams responded. “The information was provided to Victoria Police and Victoria Police is now investigating.”

VIDA interim director general Duncan Elliott told the hearing that the department’s referral to police consisted of a summary of two internal investigations carried out by Schindler Group and the Metro Tunnel’s head contractor, Cross Yarra Partnership (CYP).

Elliott defended the fact that it took 12 months for the contractor to tell his agency about the alleged fraud – and only after it completed its own internal investigation.

“The main thing from our point of view is that as soon as CYP became aware of it, they took steps to understand what had occurred, and then took steps to rectify the situation, terminate the staff members involved and recover the funds,” Elliott said.

Elliott said he did not know if Schindler was currently working on any government funded project but could not rule it out. “It’s possible, absolutely,” he said.

CYP was the lead contractor on the $15 billion Metro Tunnel. The consortium consists of construction giant John Holland – which is engaged in other major Victorian projects including the $34.5 billion Suburban Rail Loop, and part-owns both Metro Trains and Yarra Trams – along with Bouygues Construction and property giant Lendlease.

Opposition transport infrastructure spokesperson Evan Mulholland accused Labor of “covering-up Big Build corruption” by failing to ensure the alleged crimes were formally reported to police.

“This was another hollow ‘referral’ designed to fail,” he said.

The premier argued on Monday that the police investigation was proof the government’s reformed “system of accountability” was working.

“In November of last year, the Victorian Infrastructure Delivery Authority made a referral to Victoria Police, and I’m pleased to see that Victoria Police are investigating this matter,” she said.

Pressed on whether a criminal referral was ever made, Allan did not answer the question directly, but said: “That information was reported to Victoria Police … They’re investigating this matter, and again, it’s consistent with the broader work of Taskforce Hawk, where they’ve laid something like 88 charges … We are seeing, through their work and also to the work of the Labour Hire Authority that there is a changed system and culture demonstrating the zero tolerance we have for allegations of criminal behaviour.”

Start the day with a summary of the day’s most important and interesting stories, analysis and insights. Sign up for our Morning Edition newsletter.