Melbourne Metro Tunnel $6 Million Allegations Lead to Police Probe

Police are investigating $6 million in alleged misuse of funds for Melbourne's Metro Tunnel. This is a major probe into potential corruption.
By Newsroom | Crime, Infrastructure |

A specialist police taskforce has initiated a significant inquiry into alleged multimillion-dollar misappropriation connected to Melbourne's Metro Tunnel project. These allegations involve claims that officials and contractors were aware of the irregularities for an extended period without formally reporting them to the authorities. The focus of the investigation appears to be on actions by the corporate entity Schindler, which was contracted for escalator installation and has faced scrutiny over potential "corporate corruption" linked to the "Big Build" initiative.

Victoria Police have confirmed they received no formal report or allegations of criminality regarding this specific incident, directly contradicting statements made by the Minister for Transport Infrastructure, Gabrielle Williams. This discrepancy emerged when Duncan Elliott, Chief Executive of the Victorian Infrastructure Delivery Authority (VIDA), declined to confirm whether allegations of criminal misconduct were formally provided to the police. Instead, he stated that VIDA shared "the outcomes of the investigation that CYP and Schindler had undertaken."

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Concerns have also been raised regarding the timeline and transparency of any government referral. The alleged misappropriation, amounting to approximately $6 million for "damaged" machinery claimed in October 2024 and supposedly referred to police in November 2025, has drawn sharp criticism. Opposition figures have labelled the government's actions as a "cover-up" and a "hollow referral," questioning the commitment to a "zero-tolerance" stance on misconduct.

Contractor's Response and Internal Actions

Schindler's Australian headquarters has acknowledged awareness of concerns raised by the Metro Tunnel consortium. While not providing reasons for the delay in formally alerting police, the company confirmed it had become aware of these issues. Reports indicate that Schindler subsequently repaid the funds and terminated the employment of three individuals. However, these internal actions reportedly occurred without a formal police report being filed, a detail highlighted as a point of concern regarding government oversight.

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Previous Incidents and Broader Scrutiny

This current investigation is not the first time issues have surfaced concerning the Metro Tunnel project. It is understood that similar allegations of false timesheets for uncompleted work have been detected previously, with the practice reportedly continuing. The "Big Build" program itself faces ongoing scrutiny regarding expenditure and fund management, with claims that current "Taskforce Hawk" prosecutions do not directly address corruption or misuse of Big Build funds.

Official Statements and Governmental Position

Minister Gabrielle Williams stated in Parliament that she ensured the matter was referred to Victoria Police for adequate investigation. However, her inability to confirm the exact date of referral or whether the Premier's office was informed adds to the ongoing questions surrounding the government's handling of the situation. The Victorian Infrastructure Delivery Authority, when previously questioned about not formally reporting the alleged Schindler fraud, referred inquiries back to the government.

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Frequently Asked Questions

Q: What is the police investigating regarding the Melbourne Metro Tunnel?
Victoria Police are investigating claims of $6 million being misused on the Metro Tunnel project. The probe looks into whether officials and contractors knew about the problems for a long time but didn't tell the police.
Q: What role did the contractor Schindler play?
Schindler, which installed escalators, is a focus of the investigation. They reportedly repaid funds and fired staff after concerns were raised about damaged machinery claims.
Q: Why are people concerned about the government's actions?
Critics say the government might have delayed reporting the alleged fraud to the police. They question the government's promise to have zero tolerance for misconduct.
Q: Did the Minister for Transport Infrastructure report the issue to the police?
The Minister stated she referred the matter to the police. However, she could not confirm the exact date of the referral or if the Premier's office was told, leading to more questions.
Q: What did the Victorian Infrastructure Delivery Authority (VIDA) say?
VIDA's Chief Executive did not confirm if criminal misconduct allegations were given to the police. He stated that VIDA shared findings from investigations done by the project consortium and Schindler.