Bendigo Health executive and audit committee members met with IBAC this week.

In a statement released to the Bendigo Advertiser, Bendigo Health said it would assist IBAC with the investigation.

''Last year Bendigo Health confirmed that an independent investigation had been undertaken into allegations made about a staff member who was accused of serious misconduct,'' a Bendigo Health spokesperson said.

''All appropriate government agencies were notified and upon completion of the investigation the matter was referred to police.

''This week members of the Bendigo Health executive and audit committee met with the Independent Broad-based Anti-corruption Commission.

''IBAC confirmed they will now take over the investigation from the Police.

''Bendigo Health will work with IBAC and assist wherever possible.''

The Bendigo Advertiser reported on December 17 that Bendigo Health had completed an investigation into corruption allegations.

The manager was suspended from duties last month when the allegations were raised.

It is alleged he pressured winning bidders of Bendigo Health electrical projects to sub-contract labour-hire employees from certain firms.

Some of the kick-backs are believed to have included labour and building materials used in the manager's private home renovations.

Bendigo Health chief executive officer John Mulder said the investigation had been undertaken by independent investigators on behalf of Bendigo Health and all information had been passed to Victoria Police.

"Bendigo Health are not in a position to make any further comment at this stage given this is now a police investigation,'' he said.

The Bendigo Advertiser understands as many as 50 individuals and businesses were interviewed during the investigation.

The new state health minister, Jill Hennessy,  has been briefed on the matter.

State government spokesman Chris Reilly said during the investigation that "any matters (that) require referral to IBAC or police or other agencies, should occur immediately''.