Mick Gatto Payments Exposed in CFMEU Inquiry: Labour Hire Firm 2026

The CFMEU inquiry has exposed that labour hire firm M Group paid Mick Gatto over $1 million to secure work on Victoria's Big Build projects, raising serious questions about union influence and corporate governance. This revelation comes from integrity expert Geoffrey Watson SC, who testified before the Queensland inquiry into the Construction, Forestry and Maritime Employees Union (CFMEU) on Friday.

Watson's report, titled "Rotting from the Top," alleged that Gatto controlled several M Group companies through "dummy directors" Michael Portia and Tony Paragalli. While Gatto, Paragalli, and Portia have denied these allegations, Watson stood by his central claim that Gatto "controls" the companies, even after acknowledging he "probably shouldn't have said Mick Gatto owned them."

Payments to Mick Gatto: A Timeline of Financial Transactions

Since completing his report, Watson has reviewed bank accounts showing M Group companies paid Gatto $1.04 million between 2016 and 2025. The payments became "larger and more regular" over time, with notable transactions including $65,000 over six weeks in April 2020 and a single payment of $77,000 in July 2022.

Watson highlighted a critical issue: "While a company is running up a tax debt of $13m, it is paying Mick Gatto $200,000," he said. "It was paying Gatto in preference to its employees. It was paying Gatto in preference to its tax debt."

M Group's Legal Defense and the CFMEU Connection

M Group's barrister, Simon Wilson KC, argued that Portia and Paragalli "may" have ownership stakes, but the inquiry continues to scrutinize the firm's operations. Watson alleged that M Group companies received "favourable treatment from the CFMEU" on Victorian government Big Build projects, with benefits showered due to their connection to Gatto.

The inquiry has brought to light the complex web of relationships between labour hire firms, construction unions, and underworld figures. This case underscores the need for greater transparency in government infrastructure contracts and union oversight.

Key Takeaways from the CFMEU Inquiry Testimony

• Mick Gatto received over $1 million from M Group between 2016 and 2025.
• Payments increased in size and frequency, including $200,000 in early 2025.
• M Group Trades and Labour entered administration in May, owing $13.7 million in tax.
• Watson's report alleged CFMEU provided "favourable treatment" to M Group on Big Build projects.
• Gatto, Portia, and Paragalli deny any wrongdoing, but Watson maintains Gatto controls the companies.

This case highlights the importance of due diligence in labour hire arrangements, especially on publicly funded projects. Companies must prioritize tax obligations and employee wages over payments to individuals with potential conflicts of interest.

FAQ

As the inquiry continues, more details may emerge about the extent of Gatto's influence and the actions of M Group. For now, this testimony serves as a stark reminder of the risks associated with opaque financial dealings in the construction sector.