On March 5, 2026, a controversy emerged surrounding a labour hire licence obtained by an officer of a company linked to Mick Gatto, a figure associated with Melbourne’s underworld. This revelation was brought to light by the Victorian opposition, which raised concerns regarding the licensing process after Gatto’s associate, Stephen Kyriacou, received a 12-month ban from managing a licensed premise in 2022 due to a scandal involving a dancer’s death at Dreams Gentleman Club.
The Victorian Transport Infrastructure Minister Gabrielle Williams confirmed that M Group, the parent company of several labour hire firms, was involved in projects related to the North East Link. In a recent parliamentary session, Brad Rowswell, the opposition’s industrial relations spokesman, questioned Premier Jacinta Allan about the legitimacy of M1 Security Services, a subsidiary of M Group, which was registered in 2025 under Kyriacou’s name despite his controversial past.
Concerns Over Licensing Practices
Rowswell highlighted that public records indicated Kyriacou’s licensing occurred before the implementation of stricter regulations designed to assess the suitability of individuals associated with labour hire businesses. The previous regulatory framework, under which M1 Security Services was licensed, allowed for this approval despite Kyriacou’s disqualifying history.
In her responses, Allan stated that the Labour Hire Authority possesses adequate powers to investigate the eligibility of individuals and companies within the sector. “They have the powers to test the fit and proper person test that has been provided to the Labour Hire Authority,” she asserted, emphasizing the authority’s role in ensuring compliance with regulations.
Williams confirmed the ongoing investigations into M Group, noting that a notice of intent to cancel the licence of a subsidiary, M1 Trades & Labour Pty Ltd, had been issued recently. She indicated that this notice represented a significant step in evaluating the company’s future involvement in state-funded projects, stating, “Under the Labour Hire Authority’s processes, they can still work on the project until that final determination is made.”
Allegations of Underworld Connections
The opposition has raised questions about the approval of six M Group companies to operate on state-managed roads, calling for transparency regarding the financial connections between taxpayer-funded projects and companies associated with Gatto. Rowswell criticized Allan for her failure to disclose the extent of public funds flowing to these entities, reiterating calls for a royal commission to investigate potential corruption.
Beyond Victoria, the scrutiny surrounding M Group has gained momentum in Queensland, where the state’s commission of inquiry into the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU) has expressed concerns about M1 Traffic Control Queensland’s ties to Gatto. In a media statement, the inquiry referenced a report by lawyer Geoffrey Watson, SC, alleging that M Group operates as a front for Gatto and highlighting the potential for substantial revenue, estimating that one of its companies could earn $52 million in 2025.
While Gatto has consistently denied ownership of M Group companies, Watson’s report asserted that efforts to obscure his involvement have been “transparently false.” The report further described Gatto as a malign influence with a history of alleged criminal conduct.
In response to the allegations, Tony Paragalli, director of M1, refuted Watson’s claims, stating that there was no attempt to contact the company for clarification before the report was issued. Paragalli characterized Gatto’s relationship with M1 as a straightforward business arrangement, highlighting a fee of $30,000 per year for industrial relations mediation.
The situation continues to unfold as the Labour Hire Authority’s investigations progress, and more than 140 cancellations within the construction sector indicate a serious commitment to addressing compliance issues. Commissioner Stuart Wood has called for any information regarding ongoing investigations, ensuring that confidentiality will be maintained for those who come forward.
As the inquiry and political scrutiny intensify, the implications of Gatto’s alleged connections to these companies remain a focal point of public and governmental concern, particularly regarding the integrity of taxpayer-funded projects.
