In a Victorian parliamentary hearing on Monday, Independent Broad-based Anti-corruption Commission leaders were questioned on their handling of Premier Jacinta Allan's mid-2024 referral into CFMEU misconduct.
Scrutiny of the IBAC referral ramped up after barrister Geoffrey Watson SC's report found worksites became drug distribution hubs, killers were handed high-paying jobs and strippers performed for night crews following the infiltration of organised crime into the union's Victorian branch.
Redacted sections of the report, entitled Rotting from the Top, claimed Victorian government inaction also caused an estimated $15 billion in blowouts on the state's Big Build.
The premier was told the referral was outside IBAC's jurisdiction in October 2024, but the watchdog did not confirm it was dismissed until February 16, 2026.
Integrity and Oversight Committee deputy chair and Liberal MP Kim Wells accused IBAC commissioner Victoria Elliott of giving members "the run-around" in September 2025 when she did not reveal the status of the referral.
Ms Elliott explained the agency broke with its practice of not providing a running commentary to clear up "confusion" after the referral letter was released by the government.
"It was not the same situation," she told the committee.
The independent agency can investigate public officials, but not contractors or third parties such as union officials and bikies under its legislative framework.
Ms Elliott reiterated the watchdog's support for "follow the dollar" powers, as recommended by the committee in December.
"In relation to (the) Big Build, we consider that these amendments will enable us to follow the money," she said.
The agency is also seeking a broader definition of corrupt conduct as it can currently only investigate when there is a link to an indictable offence.
"It is an extremely high bar," Ms Elliott said.
The hearing came as the Allan Labor government split off a change to hate speech laws, prompted by Sydney's Bondi Beach terror attack, from an omnibus bill.
The wide-ranging legislation was abruptly pulled in the state's upper house on February 19, with the Greens, opposition and crossbench MPs preparing to team up to pass an amendment to give IBAC "follow the dollar" powers.
Attorney-General Sonya Kilkenny denied the move to present the laws - which remove a requirement for Director of Public Prosecutions consent before police can pursue criminal vilification charges - as a standalone bill was designed to block the IBAC changes.
Shadow Attorney-General James Newbury accused the premier of standing in the way of giving the watchdog "real teeth", while the Greens said Labor were "running scared".
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