Labour Hire Firm Paid Mick Gatto $1M for Big Build Work 2026

In a shocking revelation, a labour hire firm paid underworld figure Mick Gatto more than $1 million over nine years to secure work on Victorian government Big Build sites, as detailed in the CFMEU inquiry. The payments, which increased over time, have raised serious questions about corruption and influence in the construction industry.

Key Allegations in the CFMEU Inquiry

Integrity expert Geoffrey Watson SC testified before the Queensland inquiry into the Construction, Forestry and Maritime Employees Union (CFMEU) on Friday. His report, Rotting from the Top, alleged that Gatto controlled several M Group companies through 'dummy directors' Michael Portia and Tony Paragalli. Watson claimed these companies received favourable treatment from the CFMEU on Victorian government projects due to their connection to Gatto.

While Gatto, Paragalli, and Portia have denied the allegations, Watson stood by his central claim that Gatto 'controls' the companies. He noted that since the report was completed, bank accounts revealed M Group companies paid Gatto $1.04 million between 2016 and 2025, with payments becoming 'larger and more regular' over time.

Financial Details of the Payments

The inquiry heard that M Group made a $65,000 payment over six weeks in April 2020 and a single payment of $77,000 in July 2022. In the first half of 2025 alone, M Group paid Gatto $200,000, while the company entered administration in May owing $13.7 million in tax. Watson highlighted the stark contrast: 'While a company is running up a tax debt of $13m, it is paying Mick Gatto $200,000. It was paying Gatto in preference to its employees. It was paying Gatto in preference to its tax debt.'

Comparison: Payments vs. Tax Debt

This table illustrates the growing payments to Gatto even as the company's financial obligations mounted, suggesting a priority on personal payments over legal debts.

Implications for the Construction Industry

The allegations raise serious concerns about the integrity of labour hire arrangements on public infrastructure projects. If true, they indicate that connections to underworld figures could influence contract awards, undermining fair competition and worker safety.

• Corruption risk: Payments to Gatto suggest potential undue influence over CFMEU and project approvals.
• Financial mismanagement: Paying Gatto while ignoring tax debts harms employees and taxpayers.
• Regulatory failure: The inquiry highlights gaps in oversight of labour hire firms on government projects.
• Need for reform: Stricter vetting and transparency measures are essential to prevent similar abuses.

Legal and Ethical Considerations

M Group's barrister, Simon Wilson KC, argued that Portia and Paragalli 'may' also own part of the companies, but the evidence of control remains contested. The inquiry continues to examine whether Gatto's role was merely advisory or operational, and whether the payments were legitimate consulting fees or disguised bribes.

What This Means for Workers and Taxpayers

Workers on Big Build sites deserve assurance that their employers are financially sound and free from criminal influence. Taxpayers funding these projects expect their money to go towards infrastructure, not personal payouts. The inquiry's findings could lead to new laws requiring disclosure of all payments to third parties by labour hire firms.

FAQ

The CFMEU inquiry continues to uncover evidence of potential corruption in the construction sector. As more details emerge, it is crucial for regulators and the public to demand accountability and transparency from all parties involved in government-funded projects.