A report into CFMEU corruption alleges Tony Gatto used dummy directors to control firms and systematically evade tax [1].
The findings suggest a coordinated effort to infiltrate the Big Build program in Victoria. Because this program involves massive public infrastructure spending, the allegations of systemic tax evasion and underworld influence raise significant questions about the integrity of government procurement.
John Broderick, the author of the report, said Gatto sat atop a corporate morass [1]. According to the report, Gatto utilized a network of dummy directors to maintain control over various firms while shielding his own involvement [1]. This structure allowed the firms to operate within the Big Build program while avoiding fiscal obligations to the state [1].
Broderick said the tax evasion occurred over decades [1]. The report outlines how these corporate maneuvers were used to facilitate the infiltration of the construction industry, allowing Gatto to exercise influence over projects funded by the Victorian government [1].
Broderick has since criticized the Victorian government regarding the handling of these findings [1]. He said the government's response suggested he had made up the allegations, which he said was an attempt to undermine the report's evidence [1].
The report focuses on the intersection of organized crime and labor unions within the construction sector. By using proxy directors, Gatto allegedly bypassed regulatory checks that would otherwise prevent individuals with his background from securing government contracts [1].
“Tony Gatto used dummy directors to control firms and systematically evade tax.”
These allegations highlight a systemic vulnerability in the Victorian government's infrastructure oversight. If an underworld figure can successfully use proxy directors to secure roles in the Big Build program, it suggests that current due-diligence processes are insufficient to detect sophisticated corporate layering used for tax evasion and organized crime infiltration.
