Why it's trending
The sudden interest was triggered by the 31 July 2026 hearing in Brisbane, where Watson refused to back away from his allegations against Gatto, repeatedly clashed with Gatto's barrister, and revealed that Victoria's government had not contacted him about the report. The Courier Mail's report that Watson had declared himself 'done' with the inquiry added a dramatic twist, pushing the story beyond the usual legal coverage.
The author of the 'Rotting from the Top' report, Geoffrey Watson SC, appeared before Queensland's CFMEU inquiry on 31 July 2026 and refused to withdraw his explosive allegations linking notorious Melbourne gangland figure Mick Gatto to a network of labour-hire companies. According to ABC News, Watson told the hearing 'all the evidence points to Mr Gatto controlling the M Group companies' and that the business 'was commenced by an act of corruption.' The companies, including M1 Trades Group and M1 Traffic Control Qld, use Tony Paragalli and Michael Portia as 'dummy directors,' Watson alleged. All three men deny the claims.
The Age adds that Watson accused Gatto of using the companies to infiltrate Victoria's $109 billion Big Build program and systematically evade tax. Watson also alleged that Gatto siphoned more than $1 million from the firms and tried to hide his ownership by transferring one company to a daughter-controlled entity. However, Simon Wilson KC, acting for M1 Group, insisted the companies were always under Paragalli and Portia's control and pointed to ASIC documents showing no Gatto involvement. Watson dismissed that, saying Gatto didn't abide by filing requirements. The Courier Mail separately reported Watson declaring he was 'not coming back' to the inquiry.
These claims stem from Watson's 'Rotting from the Top' report into the CFMEU, which ABC says laid bare allegations of violence, intimidation, bullying, corruption, and bikie infiltration in the union's Queensland and Victorian branches. The inquiry, chaired by Commissioner Stuart Wood KC, has been examining those findings. The hearing on 31 July became heated when Wilson told Watson 'I'm going to be ruder later,' prompting Wood to ask 'Do we really need all this theatre?' Watson also revealed that 'nobody' from the Victorian government had contacted him despite the report's political fallout.
The standoff underscores the ongoing legal and political fight over union corruption. Gatto remains the subject of a federal and state police investigation, according to The Age, and the inquiry's findings could have major implications for Victoria's infrastructure sector and the CFMEU's leadership. Watson's apparent decision to walk away raises questions about whether the inquiry can get the full picture. The commission will ultimately decide whether to accept Watson's interpretation of the evidence or the denials from Gatto and his associates.
Timeline
- Watson authors 'Rotting from the Top'
Geoffrey Watson SC wrote a bombshell report alleging a culture of violence, intimidation and bullying in the CFMEU's Queensland branch, as well as corruption and bikie infiltration in Victoria, according to ABC News.
- Watson testifies at Queensland inquiry
He refused to withdraw claims about Mick Gatto controlling M Group companies through dummy directors, saying 'all the evidence points' to Gatto controlling them, per ABC News.
- Courtroom clash unfolds
Watson and Gatto's barrister Simon Wilson KC exchanged barbs ('I'm going to be ruder later'), prompting Commissioner Stuart Wood KC to intervene, per ABC News.
- Watson declares he's done
The Courier Mail reports Watson saying 'I'm not coming back,' declaring he was done with the inquiry.
Questions people ask
Who is Mick Gatto?
ABC News describes him as a 'notorious Melbourne gangland figure' and The Age calls him an 'underworld figure.' He is linked to M1 Trades Group and is the subject of a federal and state police investigation, but he denies any ownership of or wrongdoing related to M Group companies.
What did Geoffrey Watson SC allege?
Watson told the inquiry that Gatto controlled M Group companies via 'dummy directors' Tony Paragalli and Michael Portia, that the business was 'commenced by an act of corruption,' and that Gatto siphoned over $1 million from the companies, according to ABC News and The Age.
What is the CFMEU inquiry?
It's a Queensland commission of inquiry examining Watson's 'Rotting from the Top' report, which alleged corruption, violence, intimidation, and bikie infiltration in the CFMEU. The inquiry is chaired by Commissioner Stuart Wood KC, per ABC News.
Why did the hearing become heated?
Watson and Gatto's barrister Simon Wilson KC clashed repeatedly. Wilson said 'I'm going to be ruder later,' and Watson challenged Wilson to 'go straight for it' if he wanted to question his competence. Commissioner Wood intervened, asking if the theatre was necessary, ABC News reported.
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