Mick Gatto’s suspected Queensland operation called out, putting Jacinta Allan under fresh pressure
A labor hire company named as a front for gangland figure Mick Gatto and making millions of dollars from the Victorian government’s Big Build has shut down its Gold Coast-based operation amid a major investigation in Queensland.
The Queensland CFMEU commission of inquiry held a press conference outside M1 Traffic Control Queensland offices to highlight concerns about potential links to Gatto, in a move that could see organizations lose their operating licences.
KC’s appearance outside the company’s offices in Brisbane on Wednesday morning is highly unusual for such an investigation, said Commissioner Stuart Wood, KC, and senior counsel Patrick Wheelahan, who is assisting with its investigation.
In a press release, the commission noted a report by anti-corruption lawyer Geoffrey Watson, KC, last month which found M Group was a reputed front company for Gatto and that a new company in Queensland was also linked in the same way.
Wood said no findings had been made about the organization or any other organisation, but he called for the information to be kept confidential and for procedural fairness to all under investigation.
Wheelahan told the media that the commission did not suggest that the company was owned by Gatto or that there was any wrongdoing.
But he said Victoria was concerned there could be a repeat of the Big Build experience ahead of the Olympics, where Watson estimated $15 billion was wasted.
“The pot of money in the build-up to the Olympics is clearly going to be in Queensland now, I think $130 billion is what’s going to be spent,” he said.
“It would be a big mistake not to do research. [Watson’s] “He reported that one of the companies he said was linked to Mick Gatto was now incorporated in Queensland because he didn’t want Queensland to end up like Victoria.”
The move underlines Victorian authorities’ decision to continue allowing M Group to continue operating in the southern state.
The Victorian government insisted it had taken adequate action to clean up the construction industry following this byline’s reporting, but M Group still has a license to operate in the state.
The Watson report, submitted alongside last month’s inquiry, said Gatto owned a number of companies within Group M and there was “no doubt” he had received favorable treatment from the CFMEU.
He predicted that one company in the group would earn $52 million in 2025.
“Gatto, of course, denies ownership of Group M companies, but this is patently false. Gatto’s attempts to conceal his involvement are crude,” Watson’s report said.
The Queensland commission said M1 Traffic Control Queensland had similar ownership structures to other Gatto companies disclosed by Watson.
Watson found Gatto exerted a malicious influence and detailed several examples of what he called “criminal conduct.”
Gatto has repeatedly denied wrongdoing and publicly mocked Watson’s findings.
M1 Traffic Control is licensed as a labor hire operator by Queensland regulators, but the northern state’s authorities will almost certainly face pressure to review that license in light of Wednesday’s press conference.
Victoria’s Labor Hiring Authority first licensed the labor hiring group in 2022 and renewed its license last year.
The authority’s powers are limited and, even after a recent legislative change, it is often unable to take over labor hire companies found by law enforcement or investigations to have organized crime links or to be corrupt.
But dozens of construction companies, including those with ties to gangland figures and bikes, have had their licenses revoked.
BK Labour, a company recently stripped of its licence, has applied to the state administrative tribunal to have its license reinstated, despite its owners being charged by Victoria Police’s specialist Taskforce Hawk.
The moves come after this imprint said on Wednesday that the state’s Ombudsman had criticized the agency that runs Big Build for poor record-keeping that hampered its ability to investigate the whistleblower’s alleged corruption.
The Ombudsman’s concerns about the Victorian Infrastructure Delivery Authority’s lax record-keeping were revealed in a briefing note last month, resulting in referrals to the state’s anti-corruption watchdog and auditor general.
“VIDA’s poor financial record keeping and reporting increases corruption risks, and there is a need to strengthen management and reporting mechanisms to enable effective oversight and accountability,” the Ombudsman note said.
The Auditor General also released a report on Wednesday revealing the government had failed to keep Victorians informed about the performance of massive infrastructure projects.
More to come
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Nick McKenzie is an Age investigative journalist who has been named the Graham Perkin Australian Journalist of the Year three times. The winner of 20 Walkley Awards, including the Gold Walkley, he explores politics, business, foreign affairs and criminal justice.Connect via email.
Matt Dennien is a reporter covering state politics and public services for the Brisbane Times. He previously worked for newspapers in Tasmania and Brisbane community radio station 4ZZZ. Contact him securely on Signal @mattdennien.15Connect via email.
