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

The labour hire firm M Group paid underworld figure Mick Gatto more than $1 million to secure work on Victorian government Big Build projects, as revealed in a CFMEU inquiry. This payment arrangement has sparked serious questions about integrity and influence in the construction industry.

Key Findings from the CFMEU Inquiry

Integrity expert Geoffrey Watson SC testified that M Group companies paid Gatto $1.04 million between 2016 and 2025, with payments becoming larger and more regular over time. The inquiry also heard that M Group Trades and Labour entered administration in May owing $13.7 million in tax, while still paying Gatto $200,000 in the first half of 2025.

Allegations of Control and Dummy Directors

Watson's report alleged that Gatto controlled M Group through dummy directors Michael Portia and Tony Paragalli, who have denied the claims. Watson later clarified that he "probably shouldn't have said Mick Gatto owned them" but stood by his central allegation that Gatto "controls" the companies.

Payment Timeline and Tax Debt Concerns

The inquiry revealed a troubling pattern of payments while the company accrued massive tax liabilities. For instance, M Group paid Gatto $65,000 over six weeks in April 2020 and a single payment of $77,000 in July 2022.

Implications for Construction Industry Integrity

This case highlights systemic issues in labour hire and construction procurement. The alleged connection between Gatto and CFMEU influence on Big Build sites raises concerns about fair competition and transparent governance.

Key Takeaways

• M Group paid Gatto over $1M to secure Big Build contracts, according to inquiry testimony.
• Payments increased in size and frequency while the company accumulated $13.7M in tax debt.
• Watson alleges Gatto controlled M Group, despite denials from involved parties.
• The inquiry underscores the need for stronger oversight of labour hire firms in government projects.

FAQ

As the inquiry continues, industry stakeholders and policymakers must address these vulnerabilities to ensure public infrastructure projects are free from corrupt influence. The revelations serve as a stark reminder of the need for rigorous due diligence and accountability in labour hire practices.