Mick Gatto Payments Exposed in CFMEU Inquiry Over Big Build 2026

The CFMEU inquiry revealed that a labour hire firm paid Mick Gatto over $1 million to secure work on Victoria's Big Build projects, raising serious questions about union influence and business ethics. This article examines the key findings and what they mean for the construction industry.

Payments to Mick Gatto Under Scrutiny

Integrity expert Geoffrey Watson SC testified that M Group companies paid Gatto $1.04 million between 2016 and 2025. Payments grew larger and more regular over time, including $65,000 in six weeks during April 2020 and a single $77,000 payment in July 2022.

Watson noted that M Group Trades and Labour entered administration in May owing $13.7 million in tax, yet still paid Gatto $200,000 in the first half of 2025. He criticized this as paying Gatto in preference to employees and tax debts.

Allegations of Control and Dummy Directors

Watson's report alleged Gatto controlled M Group companies through "dummy directors" Michael Portia and Tony Paragalli. While he later softened his language, he maintained that "all the evidence points to Mick Gatto controlling the M Group companies."

The companies allegedly received favorable treatment from the CFMEU on Victorian government Big Build projects due to their connection to Gatto. Gatto, Paragalli, and Portia have denied these allegations.

Comparison of Key Payments to Mick Gatto

Implications for Construction Industry Compliance

This case highlights the need for transparent labour hire practices and strict compliance with tax obligations. Businesses must avoid arrangements that prioritize personal payments over employee wages and tax debts.

• Ensure all payments to consultants are documented and justified.
• Regularly audit financial transactions for conflicts of interest.
• Maintain clear separation between company ownership and external influence.
• Prioritize tax payments and employee entitlements over discretionary spending.

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