The Victorian Liberals and Nationals have referred one of the largest corruption cases in the state's history to the Independent Broad-Based Anti-Corruption Commission (IBAC) for investigation.

It comes after findings of corruption from an investigation into the CFMEU were released last week.

Geoffrey Watson SC carried out the investigation as part of Queensland's Commission of Inquiry and he accused the Victorian government of inaction on issues emerging with the union.

The commission was also shown a redacted draft final report in which Mr Watson estimated that the actions of the CFMEU had cost the Victorian taxpayer about $15 billion.

"A $15 billion corruption scandal is simply staggering," Ovens Valley MP Tim McCurdy said.

"If the Ovens Valley received its fair share of that money, it would amount to around $170 million invested right here in our electorate.

"That’s funding that could have gone into safer roads, better hospitals and stronger schools for local families, instead of being lost to corruption under the watch of Premier Jacinta Allan.

"Victorians deserve answers, accountability and an end to this failure of leadership.

“At a time when families are already under pressure, the idea that every household has effectively paid thousands of dollars because of government failure is unacceptable. "Victorians deserve to know who knew what, and when.”

Premier Jacinta Allan spoke to the allegations last week and said it was clear there has been "a rotten culture that needs to be weeded out".

"When allegations were raised with me they were referred to the relevant authority for their investigation," she said.

"When the media reports around the widespread nature of this rotten culture became public in the middle of 2024, we acted immediately, recognising that this is unacceptable behaviour.

"This is why we commissioned Greg Wilson to undertake that inquiry and we have implemented those recommendations from the Wilson inquiry."

Premier Allan described the $15b figure as a figure the administrators has given but it "has not been well tested or properly founded, as said by the administrator".

"In terms of criminal behaviour it is for the law enforcement agencies, Victoria Police particularly, the federal police to investigate any claims," she said.

Victoria Police Taskforce Hawk was established to target criminal behaviour linked to the construction industry.

Last Thursday afternoon taskforce detectives charged two men as part of an investigation into blackmail.

The charges relate to allegations of blackmail committed at a business in Brooklyn on 19 January 2026, when a demand was allegedly made for the victim to pay $663,000.