Labour Hire Firm Paid Mick Gatto Over $1 Million for Big Build Access
Wanderstayfinder.com – A labour hire firm paid Mick Gatto more than $1 million over nine years to secure work on Victorian government Big Build sites, according to testimony at the CFMEU corruption inquiry. Integrity expert Geoffrey Watson SC told the Queensland inquiry that Rotting from the Top report alleged the construction union gave favourable treatment to companies controlled by the underworld figure through dummy directors.
Watson appeared before the inquiry on Friday defending his findings about M Group companies. He stated that bank records showed payments to Gatto totaling $1.04m between 2016 and 2025, with amounts becoming larger and more regular over time. The payments included $65,000 spread across six weeks in April 2020 and a single $77,000 transfer in July 2022.
Payments Made Despite Tax Debts
Watson highlighted that M Group paid Gatto $200,000 in the first half of 2025 while simultaneously entering administration with $13.7m in unpaid taxes. “While a company is running up a tax debt of $13m, it is paying Mick Gatto $200,000,” Watson explained. “It was paying Gatto in preference to its employees and in preference to its tax debt.”
M Group’s barrister Simon Wilson KC argued that Portia and Paragalli were not merely frontmen for Gatto. He acknowledged the firm paid Gatto a substantial amount over many years but contended these payments protected income sources. Wilson explained that M Group would win tenders but face blockage from larger CFMEU-aligned groups, requiring Gatto’s intervention to allow work to proceed.
“They’d win a tender, start to put people on the site, and they’d be blocked out by bigger groups,” Wilson told the inquiry. “They had to get Gatto to come in and say, ‘Come on, these people can be in.'”
Watson characterized the arrangement as paying Gatto to fix contracts, while Wilson countered that a genuine Gatto company would not need such payments. The two legal representatives clashed frequently during Watson’s cross-examination, prompting Commissioner Stuart Wood KC to repeatedly intervene in the proceedings.
Political Fallout and Union Reform
Watson’s third and final appearance at the inquiry follows Jacinta Allan’s resignation as premier after losing Labor caucus support amid the corruption scandal. Her successor Ben Carroll committed to a royal commission into the construction industry on his first day as premier. The newly appointed CFMEU administrator Michael Crosby told ABC’s 7.30 that while sceptical about royal commissions, he welcomed the broader industry examination.
“We will fix this union up. It’ll be back in the fold of the union movement as a powerful, strong, ethical union,” Crosby declared. “That’s not going to last if it’s sitting in an industry riddled with corruption.” He identified fixers as still holding criminal influence over contract allocation in the sector.
Watson revealed that Victorian Labor government representatives had not contacted him despite criticizing his $15bn corruption estimate. “They made statements to the press without asking me anything about how I arrived at the report or what I did to achieve it,” he said. “They were bitterly critical remarks. It’s hard to interpret them as anything less than suggesting I made it up.”
Shadow attorney general James Newbury maintained that “Labor may have a new leader, but under Ben Carroll, underworld linked labour hire firms are still profiting off the corrupted Big Build.” The Victorian government has been contacted for further comment on these developments.
Frequently Asked Questions
How much did the labour hire firm pay Mick Gatto? Bank records revealed M Group companies paid Gatto $1.04 million between 2016 and 2025, with payments increasing in frequency and size over time.
Why were payments made to Gatto? M Group’s legal team argued payments protected income sources by securing access to Big Build contracts blocked by larger CFMEU-aligned groups.
What is the current status of the inquiry? Geoffrey Watson SC completed his third and final appearance at the Queensland CFMEU inquiry, with Premier Ben Carroll committing to a royal commission into the construction industry.
How much corruption did Watson estimate? Watson’s report estimated that corruption in the construction union cost Victorian taxpayers up to $15 billion.
