Major Big Build labour hire company embroiled in fraud investigation

A Victoria Police taskforce alleges a major state government Big Build labour hire subcontractor is involved in alleged criminal conduct bringing fresh focus on allegations dogging Labor’s signature infrastructure project.

On Thursday morning, police released a statement detailing how Taskforce Hawk, which is probing the construction industry, had arrested two people and charged one of them as part of an investigation into alleged financial misconduct linked to a Port Melbourne labour hire company.

The new Town Hall station on Melbourne’s Metro Tunnel line.Credit: Wayne Taylor

Police did not name the business, but this masthead can reveal the allegations relate to BK Labour, a major supplier of workers across multiple Big Build projects, including the recently opened Metro Tunnel and various level crossing removal projects.

BK is closely linked to the so-called Irish faction of the CFMEU and has been subject of multiple allegations that it was improperly pushed on to major government projects by certain union officials.

In a statement, police said a warrant was executed on Wednesday at the company’s headquarters in Port Melbourne and a 66-year-old Middle Park man and a 66-year-old Docklands woman were arrested.

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The man was charged with one count of using a false document and bailed to appear at Melbourne Magistrates’ Court in June.

“Police will allege invoices were falsified and are investigating a number of other payments and cash withdrawals. The arrests are part of a broader Taskforce Hawk investigation into the labour hire industry,” the statement said.

The investigation is focused on allegations of payments for preferential treatment on major government projects, according to a source not able to speak publicly.

The woman was released pending further enquiries.

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As a part of its response to revelations in this masthead’s Building Bad series, the union’s administration has moved to clean up the corruption-tainted labour hire industry alongside sweeping action from Victoria’s Labour Hire Authority.

BK Labour recently told clients that the firm was shutting down.

In a letter to clients, obtained by this masthead, the company said it was voluntarily winding up in a “planned and orderly process” that would not adversely affect its creditors.

It said in the statement that the decision was taken after “much contemplation”, so that the company’s directors could retire.

BK Labour declined to comment when contacted on Thursday.

More to come

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