The Yoorrook Justice Commission said it was concerned by reports of government failures to ensure fairness in the awarding and administration of large contracts in the construction sector.
It came after Premier Jacinta Allan acknowledged it took too long to reply to an Indigenous labour-hire firm's 2022 letter detailing allegations of CFMEU officials threatening violence and banning non-aligned firms from state and federally funded projects.
Yoorrook has the powers of a royal commission, meaning it can call witnesses, compel the production of documents and make findings and recommendations
Indigenous suppliers, organisations and individuals have contacted the commission in recent days wanting to share allegations of misconduct and exploitation within the sector.
The commission is investigating systemic injustices against Aboriginal and Torres Strait Islander people, including within the Victorian economy, as part of the state's treaty process and previously received submissions on the construction sector.
"Increased participation in the Victorian economy is essential for Victorian First Peoples, if true self-determination is to be achieved," commissioner and deputy chair Travis Lovett said.
Travis Lovett says Indigenous people need to fully participate in the Victorian economy. (Joel Carrett/AAP PHOTOS)
"We encourage affected First Nations businesses and individuals to continue to come forward, including on a confidential basis, to contribute to our ongoing inquiries, and inform necessary change in the sector."
Ms Allan pointed out Victoria Police and the corruption watchdog were investigating after a referral from her office over claims bikies and organised crime figures had infiltrated the union.
"I believe those agencies have the tools and powers and resources to appropriately investigate these allegations," she told reporters on Wednesday.
"Yoorrook has been established as an independent agency so I don't want to cut across the work they are doing."
Speaking just before the federal government announced it would appoint an independent administrator to the embattled union, the premier said she would welcome the move.
The union's national executive has already placed its Victorian and South Australian branches into administration and launched its own investigation.
In other moves spurred on by Ms Allan, federal Labor has begun steps to suspend the CFMEU's construction arm from the Victorian Labor Party.
The state Labor Party is also no longer accepting donations from the union's construction division, Ms Allan confirmed on Tuesday.
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