The Victorian government is reviewing its major construction contracts for corruption links following bribery allegations within the building industry.
A joint ABC-Fairfax Media investigation claims union officials are making corrupt deals to help companies linked to organised crime secure construction contracts.
Victoria's desalination plant, a project of the former Labor government, is among a number of projects in which companies connected to major crime figures are reportedly involved.
Planning Minister Matthew Guy says current government contracts will be examined in the wake of the revelations and any evidence of corruption will be passed on to police.
"We're not going to rip up contracts," he said.
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He denied the state's hands were tied in tackling the issue further since industrial relations falls under federal legislation.
But when pressed for further measures he could make to stop corruption, he could only stress the need to get the federal government to re-establish the Australian Building and Construction Commission (ABCC).
The corruption allegations have embroiled the CFMEU and state Labor, which readmitted the union to the party's left faction and accepts its donations.
Mr Guy said it's clear a future state Labor government under Daniel Andrews would be held hostage to the building union.
"He would pander to the CFMEU. He would be scared to discipline the CFMEU," he said.
Mr Andrews stressed the need to get police involved in investigating the allegations as quickly as possible.
"The most important thing to do is to establish the facts," the opposition leader said.
When asked if Labor should end its relationship with the CFMEU, Mr Andrews said he did not want to prejudge the outcome of any police investigation.
"Once those facts have been established by Victoria Police, I'll be more than happy to deal with them," he said.
Deputy Labor leader James Merlino said he also didn't want to prejudge an investigation by urging the party to scrap accepting union donations.
"It will be the police investigation that will determine whether these are isolated instances or whether this is widespread across the industry," he said.
Mr Merlino did not comment directly when asked if Labor had been aware of corruption allegations about the desalination plant, instead repeating that the matter should be investigated by police.
