Systemic Corruption in State Infrastructure
A massive cache of leaked business records has exposed a continuing “pay-to-play” culture within Victoria’s $100 billion “Big Build” infrastructure program. The documents reveal that multiple subcontractors have placed notorious gangland figure Mick Gatto and his associates on their payroll, explicitly to ensure access to project sites that are otherwise controlled by the Construction, Forestry and Maritime Employees Union (CFMEU).
Despite government pledges of zero tolerance for corruption, the records confirm that payments were made as recently as 2026. Subcontractors admitted to investigators that they felt compelled to pay Gatto to circumvent industrial blockades, effectively treating his “mediation” services as an unofficial toll for the right to work on taxpayer-funded projects.
The “Everybody Eats” Economy
Former senior Victoria Police anti-corruption detective Daniel Baulch compared the state of the Big Build to graft-ridden environments in Papua New Guinea, describing a culture where “everybody eats.” The leaked files show over a dozen firms, including Cycon Civil, Project Labour Solutions, and Elite Roads, funneling millions of dollars to Gatto-controlled entities. One insider noted that without these payments, companies are routinely blocked from sites, leading to massive cost blowouts that are ultimately borne by the public.
The revelations have prompted a fierce political backlash. Former state ombudsman Deborah Glass and former IBAC chief Robert Redlich have issued a joint call for a royal commission, labeling the scandal the worst in the state’s history. They argue that existing regulatory checks have failed to penetrate the symbiotic relationship between organized crime, certain union elements, and the construction sector.
Institutional Failure and Political Stakes
The scandal is compounded by evidence that principal contractors were directed by the state government to concede to CFMEU demands to avoid project delays. This “political” appeasement, according to internal consortium correspondence, contributed to cost increases of nearly $200 million on the Metro Tunnel project alone. Labor Hire Commissioner Steve Dargavel has criticized the lack of legal teeth in current oversight, noting that the “fish rots from the head,” placing responsibility squarely on principal contractors who have tolerated or facilitated these illicit arrangements.
As the Victorian government defends its record, the opposition continues to demand an independent inquiry. For now, the “Big Build” remains under a cloud, with the intersection of underworld influence and public infrastructure spending raising fundamental questions about corporate ethics and the integrity of state-sanctioned procurement.