A Victorian labour hire firm paid more than $1 million to underworld figure Mick Gatto to secure contracts on government-led Big Build infrastructure projects, a commission of inquiry has heard. The payments, which occurred between 2016 and 2025, were allegedly made to ensure the company could operate on sites where the Construction, Forestry and Maritime Employees Union held significant influence. Integrity expert Geoffrey Watson, SC, testified that the payments became increasingly large and frequent over time, even as the firm struggled to pay its own workers and accumulated over $13 million in tax debt.
The inquiry into the CFMEU examined allegations that Gatto exerted control over M Group companies through the use of dummy directors. While Gatto and the named directors have previously denied these claims, Watson maintained that evidence points to Gatto controlling the entities to secure favorable treatment from the union. The testimony highlighted a pattern where the firm continued to pay Gatto hundreds of thousands of dollars even while entering administration and failing to meet its financial obligations to the state and its employees.
This revelation has intensified scrutiny regarding the integrity of procurement processes for Victoria's major infrastructure projects. The connection between private labour hire firms, union influence, and figures associated with organized crime has raised concerns about fair competition and the potential for systemic corruption. As the inquiry continues, the focus remains on how such arrangements were allowed to persist on public projects and what measures are necessary to ensure transparency and accountability in the construction sector moving forward.