The pattern is what matters—not just the denial.
In the long and tangled history of labour, power, and organised crime, Victoria's construction industry finds itself once again at a crossroads — where the machinery of public infrastructure meets the shadow economy that has long sought to profit from it. M1 Trades & Labour, a firm operating on some of the state's most significant building projects, now faces licence cancellation after Queensland's anti-corruption inquiry drew a public line between its operations and the underworld figure Mick Gatto. The Labour Hire Authority's notice, issued in the wake of months of investigation and a damning report titled 'Rotting from the Top,' raises the enduring question of how deeply corruption can embed itself in the foundations of public works before the institutions meant to prevent it are moved to act.
- A Queensland anti-corruption commissioner took the unusual step of calling a media conference to publicly name a Victorian labour-hire firm operating on the Gold Coast, signalling that the rot had spread beyond state lines.
- Investigators documented tens of millions of dollars flowing through suspicious arrangements between M Group companies and the CFMEU, with one barrister concluding that Mick Gatto's denial of ownership was 'transparently false.'
- Victoria's Labour Hire Authority has now issued a formal notice of intention to cancel M1 Trades & Labour's licence, while the Transport Infrastructure Minister scrambles to determine how many Big Build projects the firm currently services.
- The company's Queensland director — sharing a surname with a man found to have acted as Gatto's 'dummy director' across 28 companies — insists he operates entirely independently and has no connection to Victorian corruption allegations.
- With a 14-day window to respond and the right to keep working until a final ruling, the firm remains on active worksites, including the North-East Link, as the determination plays out.
- Opposition voices are asking why it took a Queensland inquiry to surface what they call the 'depth of corruption' embedded in Victorian government-funded construction — a question that hangs uncomfortably over the state's regulatory institutions.
A labour-hire firm quietly expanding onto Queensland's Gold Coast has found itself at the centre of a public reckoning after the commissioner leading that state's CFMEU inquiry called a media conference to raise concerns about its Victorian connections. M1 Traffic Control, which operates on some of Victoria's largest infrastructure projects, was linked by the inquiry's senior counsel to a network of companies alleged to have funnelled tens of millions of dollars through suspicious arrangements with the union. Barrister Geoffrey Watson's investigation — 'Rotting from the Top' — documented what he described as 'inexplicable favouritism' toward M Group companies, and concluded that Mick Gatto's denial of ownership over these entities was 'transparently false.'
Within days of the Queensland intervention, Victoria's Labour Hire Authority issued a notice of intention to cancel M1 Trades & Labour's licence. Transport Infrastructure Minister Gabrielle Williams confirmed the company had workers on the North-East Link project and was investigating its presence on other Big Build sites. A contract with Goulburn-Murray Water worth approximately $1.6 million was also identified as listing the firm as a supplier.
Gatto, acquitted of murder in 2005, has consistently denied profiting from construction industry corruption, telling media he had never been paid by the government, unions, or the Big Build. Yet the inquiry found his father, Tony Paragalli, had served as a frontman and 'dummy director' across at least 28 companies. The Queensland operation's listed director shares that same surname — Jordan David Paragalli — who told media he runs the Queensland business independently and has no connection to Gatto or any Victorian allegations.
The company has fourteen days to respond to the cancellation notice and may continue operating on sites until a final determination is reached. If the authority upholds its decision, M1 will be removed from all projects it currently services. Opposition Leader Jess Wilson questioned why a Queensland inquiry had been required to expose what she called the depth of corruption embedded in Victorian government-funded construction — a pointed challenge to the state's own regulatory record.
A labour-hire company operating on some of Victoria's biggest construction projects now faces removal from worksites after Queensland's anti-corruption inquiry publicly linked it to underworld figure Mick Gatto. The firm, M1 Traffic Control, had been quietly expanding its operations on the Gold Coast when Stuart Wood, the commissioner leading Queensland's CFMEU inquiry, called a media conference to air concerns about the company's connections to corruption exposed in Victoria.
The inquiry's senior counsel, Patrick Wheelahan, drew a direct line between M1 Traffic Control's Queensland operation and a web of companies in Victoria that had funnelled tens of millions of dollars through suspicious arrangements with the CFMEU. Barrister Geoffrey Watson's investigation, titled "Rotting from the Top," had documented what he called "inexplicable favouritism" toward M Group companies. Though Gatto denied owning these entities, Watson concluded the denial was "transparently false."
Within days of the Queensland inquiry's intervention, Victoria's Labour Hire Authority issued a notice of intention to cancel M1 Trades & Labour's licence. Transport Infrastructure Minister Gabrielle Williams confirmed the company currently has workers on the North-East Link project and said she was investigating whether it held contracts on other Big Build sites. A separate contract with Goulburn-Murray Water, valued at approximately $1.6 million for field-based labour services, also lists the firm as a supplier.
Gatto has consistently denied profiting from construction industry corruption. Acquitted of murdering underworld figure Andrew Veniamin in 2005, he told media in February that neither the government, unions, nor the Big Build had ever paid him. He maintains he was never a standover man in the construction sector. Yet the inquiry found that his father, Tony Paragalli, had served as a frontman for Gatto, acting as a "dummy director" for at least 28 companies spanning security, transport, hotels, and telecommunications.
The Queensland operation lists Jordan David Paragalli as its director—the same surname as Tony Paragalli. When questioned about the connection, Jordan Paragalli told the media he was the sole operator of the Queensland business and had "absolutely nothing to do" with Gatto or any Victorian corruption allegations. He described the Queensland venture as a completely separate operation under the same banner, with no links to the CFMEU.
Under the cancellation notice, M1 Traffic Control has fourteen days to mount a response and can continue working on sites until a final determination is made. If the authority upholds the decision, the company will be removed from all projects it currently services. Williams deflected questions about the timing of the notice, noting that the Labour Hire Authority had cancelled more than 140 licences as part of a broader investigation spanning months. Opposition Leader Jess Wilson said it was troubling that a Queensland inquiry had been needed to expose what she called the "depth of corruption" embedded in Victorian government-funded construction sites.
Notable Quotes
While it's under the same banner, it's a completely separate venture with no CFMEU link to it or anything like that.— Jordan Paragalli, Queensland M1 Traffic Control director
If that final determination is upheld, M Group will be walked off any sites that they're on.— Gabrielle Williams, Transport Infrastructure Minister
The Hearth Conversation Another angle on the story
Why did a Queensland inquiry need to expose what sounds like a Victorian problem?
The corruption had been operating quietly for years. It took an independent inquiry in another state, with real investigative power, to connect the dots and make the connections public enough that regulators had to act.
So Gatto denies all of this. What's the actual evidence linking him to M1 Traffic Control?
The inquiry found his father was a dummy director for dozens of companies that received unexplained favours from the CFMEU. The Queensland operation has the same corporate structure and now a Paragalli as director. The pattern is what matters.
But Jordan Paragalli says he's independent. Can he actually be?
That's the question regulators are now asking. The structural similarity, the name, the timing—it's enough to warrant investigation, which is why the licence cancellation notice was issued.
What happens to the workers on these sites if the company gets removed?
That's the practical problem nobody's discussing yet. Hundreds of workers could lose their jobs or need to be reassigned. The corruption investigation is necessary, but the human cost is real.
Does Gatto face any direct charges from this?
Not yet. He's denied everything and hasn't been charged. The inquiry exposed the pattern, but proving criminal intent is different from documenting suspicious corporate arrangements.