Police Taskforce Investigates Alleged Fraud on Metro Tunnel Project

Victoria Police has launched an investigation into allegations that a contractor submitted false invoices totaling $6 million for equipment on the Metro Tunnel project that was never replaced.

Hawk began examining the claims after media reports in February. The alleged fraud occurred in October 2024 when the contractor reported flood damage to escalators and received payment for replacement parts and labor. Internal reviews later found no equipment had been replaced.

The contractor admitted the conduct, removed three employees, and repaid the funds. Police said they received information about invoicing anomalies linked to the project but have not received a formal report from project officials.

Project officials and the contractor knew of the suspected fraud for months before it was reported to police. Three sources familiar with the matter said the delay prevented investigators from using certain techniques earlier. Premier Jacinta Allan has stated that misconduct on infrastructure projects should be reported to police immediately.

Victoria Police said the investigation is ongoing and declined further comment. The contractor stated it conducted an internal review with the project consortium and addressed the matter through its own procedures.