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

The CFMEU inquiry has revealed that a labour hire firm paid Mick Gatto more than $1 million to secure work on Victorian government Big Build sites. This disclosure comes as part of an ongoing investigation into union influence and alleged underworld connections in the construction industry.

Key Allegations in the CFMEU Inquiry

Integrity expert Geoffrey Watson SC presented evidence before the Queensland inquiry, defending his report titled "Rotting from the Top." The report alleged that Gatto controlled several M Group companies through "dummy directors" Michael Portia and Tony Paragalli. Watson claimed these companies received favorable treatment from the CFMEU on Big Build projects due to their connection to Gatto.

While Watson acknowledged he "probably shouldn't have said Mick Gatto owned them," he stood by his central allegation that Gatto "controls" the companies. He noted that bank accounts showed M Group companies paid Gatto $1.04 million between 2016 and 2025, with payments becoming "larger and more regular" over time.

Payment Details and Tax Debt Concerns

The payments included $65,000 over six weeks in April 2020 and a single payment of $77,000 in July 2022. Watson highlighted that M Group paid Gatto $200,000 in the first half of 2025, while M Group Trades and Labour entered administration in May owing $13.7 million in tax. "While a company is running up a tax debt of $13m, it is paying Mick Gatto $200,000," Watson said. "It was paying Gatto in preference to its employees. It was paying Gatto in preference to its tax debt."

Defense and Denials

M Group's barrister, Simon Wilson KC, said that while Portia and Paragalli "may" have roles, the allegations of Gatto's control were overstated. Gatto, Paragalli, and Portia have previously denied the allegations. However, Watson argued that "more than ever, it is my view that all the evidence points to Mick Gatto controlling the M Group companies."

Comparison of Payments and Tax Debt

Implications for the Construction Industry

This case raises serious questions about governance and financial priorities in labour hire firms operating on government projects. The inquiry's findings could lead to stricter regulations and oversight for companies involved in public infrastructure work.

Key Takeaways

• Mick Gatto received over $1M from M Group over nine years.
• Payments increased while the company accrued a $13.7M tax debt.
• The CFMEU inquiry alleges Gatto controlled the firms, despite denials.
• This may prompt reforms in labour hire practices on government projects.

FAQ

As the inquiry continues, stakeholders in the construction and labour hire sectors should monitor developments closely. This case underscores the need for transparent financial practices and accountability when dealing with public funds.