Mick Gatto Payments Exposed in CFMEU Inquiry 2026

The CFMEU inquiry has revealed that labour hire firm M Group paid Mick Gatto over $1 million to secure work on Victorian Big Build projects, raising serious concerns about union influence and corporate governance.

Key Allegations in the CFMEU Inquiry

Integrity expert Geoffrey Watson SC testified that M Group companies paid Gatto $1.04 million between 2016 and 2025, with payments increasing in size and frequency. The inquiry heard that Gatto allegedly controlled these companies through 'dummy directors' Michael Portia and Tony Paragalli.

Watson emphasized that while a company was accumulating a $13.7 million tax debt, it was paying Gatto $200,000 in early 2025. This has sparked outrage among industry stakeholders and the public.

Payments and Control Allegations

Watson stated, "More than ever, it is my view that all the evidence points to Mick Gatto controlling the M Group companies." He noted that bank accounts showed payments of $65,000 over six weeks in April 2020 and a single payment of $77,000 in July 2022.

The inquiry also heard that M Group Trades and Labour entered administration in May 2025, owing $13.7 million in tax. This raises questions about the financial management and priorities of the company.

Comparison of Payments and Tax Debt

Defense and Denials

Gatto, Paragalli, and Portia have previously denied the allegations. However, Watson stood by his central claim that Gatto controls the companies, even acknowledging he 'probably shouldn't have said' Gatto owned them outright.

M Group's barrister, Simon Wilson KC, argued that Portia and Paragalli may also own part of the companies, but the inquiry continues to examine the evidence.

Implications for the Construction Industry

This case highlights potential corruption and undue influence in the construction sector, particularly regarding government-funded projects. The CFMEU's role and its connections to underworld figures are under scrutiny.

• Payments to Gatto exceeded $1 million over nine years.
• Payments became larger and more regular over time.
• Company paid Gatto while accumulating massive tax debt.
• Allegations of dummy directors and union influence.
• Inquiry seeks to reform industry practices.

What's Next for the Inquiry?

The Queensland inquiry into the CFMEU continues to gather evidence. Watson's testimony is crucial in understanding the extent of Gatto's control and the potential need for regulatory changes.

Stakeholders are calling for greater transparency in labour hire arrangements and stricter oversight of union-affiliated companies.

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