Vic transport dept in corruption probe

Victoria's anti-corruption watchdog will investigate how lucrative contracts to build transport infrastructure were awarded to companies with ties to public servants.

The Independent Broad-based Anti-corruption Commission (IBAC) will examine contracts awarded from 2007 to 2013 for projects including the construction of new railway car parks, and the supply and installation of bus infrastructure.

It is alleged the companies involved were established, or controlled by, current or former Department of Transport (DOT) or Public Transport Victoria (PTV) workers.

A statement posted on the IBAC website says its Operation Fitzroy investigation will examine systems and controls in place at the DOT and PTV concerning procurement.

It will also focus on "instances of officers of the DOT, and PTV, providing benefits to themselves, their family, friends or associated and other conflicts of interest".

Public Transport Minister Terry Mulder has acknowledged the investigation into his department.

"The IBAC was established by the Victorian coalition government to investigate allegations of serious corrupt conduct," Mr Mulder said on Wednesday.

"It is not appropriate for me to provide any comment on the current investigation being conducted by the commission."

The IBAC was established in February 2013 to investigate allegations of serious public sector corruption in Victoria, and Operation Fitzroy will be its first to include public hearings.

The hearings will begin on July 21.