Jacinta Allan remains under intense scrutiny after a damning report claimed the Victorian government "did nothing" to curb rising criminality within the state's rogue construction union, causing an estimated $15 billion in major project budget blowouts.
Ms Allan has defended criticisms by arguing she referred all allegations of misconduct raised with her to relevant authorities, including a referral to the Victorian corruption watchdog in mid-2024.
In a rare public statement, the Independent Broad-based Anti-corruption Commission confirmed her referral was determined to be outside of the body's jurisdiction.
The independent agency can investigate public officials, but not contractors or third parties such as union officials and bikies under its legislative framework.
Ms Allan was notified of IBAC's response on October 11, 2024 and denied she worded her referral in a way that was designed to fail.
"There were referrals to made to the Fair Work Commission, to Victoria Police and IBAC," she told reporters on Tuesday amid fierce questioning.
"I made those referrals immediately and I'm not going to cut across how those independent investigative bodies respond."
The Victorian opposition described her referral letter, released to the media on Sunday to counter claims the government turned a blind eye, as a "hoax" and "con".
The premier should have been aware of the limitation when she made the referral, former IBAC commissioner Robert Redlich said.
"If she didn't know, she should have," he told Melbourne radio station 3AW.
In December, Victorian parliament's powerful Integrity and Oversight Committee recommended the IBAC Act be amended to give the watchdog "follow the dollar" powers to probe public funds spent by private entities.
Mr Redlich said the government should have addressed the gap long ago, given allegations of CFMEU corruption went back the best part of a decade.
The state coalition and Greens have signalled their support for reforms to expand the watchdog's scope, but Ms Allan was non-committal.
"I've got no announcements to make regarding IBAC," she said.
Barrister Geoffrey Watson SC's report into the CFMEU claimed worksites became drug distribution hubs, killers were handed high-paying jobs and strippers performed for night crews after organised crime infiltrated the union.
His report, entitled Rotting from the Top, named former union officials John Setka and Joe Myles as malign influences, along with Victorian underworld figure Mick Gatto.
Redacted sections claimed the state Labor government looked the other way and much of the estimated $15 billion lost was "poured directly into the hands of criminals and organised crime gangs".Â
Ms Allan continued to reject calling a state royal commission to test the "unfounded" allegations, declaring CFMEU administrator Mark Irving KC had the "responsibility and authority" to probe their veracity.
Opposition Leader Jess Wilson said it was premier's responsibility to oversee how Victorian taxpayer's money was spent.
"This premier, once again, is refusing to take any responsibility," she said.
"It's like she couldn't care less that taxpayer money has gone to fund criminal syndicates in this state on government worksites."
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