Barristers bicker as Mick Gatto and gangland figures discussed at CFMEU inquiry

A top silk who investigated the Construction, Forestry and Maritime Employees Union (CFMEU) has refused to withdraw claims that a notorious Melbourne gangland figure controls a network of labour-hire companies, under tense cross-examination at a Queensland inquiry.

Lawyer Geoffrey Watson SC authored a bombshell report titled Rotting from the Top which laid bare allegations of a culture of violence, intimidation and bullying in the union’s Queensland branch.

He also alleged widespread corruption and bikie infiltration in the Victorian division under ousted leader John Setka.

Mr Watson fronted the inquiry in Brisbane on Friday and faced combative questioning by Simon Wilson KC, acting for the M1 Trades Group, a Victorian labour-hire and traffic management firm linked to underworld identity Mick Gatto.

In his report, Mr Watson alleged companies within the M Group network used “dummy directors” such as Tony Paragalli and Michael Portia to mask the involvement of Mr Gatto.

He also alleged Mr Gatto’s denials of owning the businesses were “transparently false”.

Mr Watson declined to withdraw any findings relating to Mr Gatto and the M Group.

“It is my view all the evidence points to Mr Gatto controlling the M Group companies,” he said.

“It was a business which was commenced by an act of corruption.”

The inquiry has heard M1 Traffic Control Qld Pty Ltd, a recently-established Gold Coast company, is owned by Mr Paragalli and Mr Portia.

Mr Portia, Mr Paragalli and Mr Gatto have all strongly denied any improper ties, ownership or front arrangements.

Courtroom clash

The two senior barristers repeatedly clashed during the hours-long cross-examination.

“If you want to challenge my competence, go straight for it,” Mr Watson said.

Mr Wilson replied: “I’m about to.”

“I’m going to be ruder later,” Mr Wilson replied.

The courtroom duel continued, prompted Commissioner Stuart Wood KC to intervene, warning Mr Wilson to rein it in.

“Do we really need all this theatre?” Commissioner Wood asked.

“We don’t need all the abuse,” he said.

‘They were suggesting I made it up’

Mr Watson told the inquiry that “nobody” from the Victorian government had contacted him about his explosive report, despite it fuelling a political firestorm in the state.

Former premier Jacinta Allen was ousted this week amid the fallout of Labor’s handling of alleged CFMEU corruption, with her replacement Ben Carroll swiftly announcing a royal commission into the construction sector.

Mr Watson’s allegations of criminal behaviour on the state’s Big Build program was heavily criticised by the former premier and other ministers, including attorney-general Sonya Kilkenny, who called the assessment “reckless” and “lacking evidence”.

“They made those statements to the press without asking me about how I arrived at the report … what I’d done to achieve the report,” Mr Watson said.

“They were bitterly critical remarks. It’s hard to read them as being anything less than they were suggesting I made it up,” he said.

Earlier this year, lawyers for ousted CFMEU leaders Michael Ravbar and Jade Ingham also challenged the “veracity” of Mr Watson’s findings, citing concerns over his research methods and record-keeping.

The inquiry heard Mr Watson relied on handwritten notes and chose not to tape interviews. However, he defended that approach, arguing witnesses “clam up” when being recorded.

Mr Watson also faced sustained cross-examination by Ruth O’Gorman KC, the counsel representing ousted Queensland CFMEU leader Michael Ravbar.

“Do you agree that another inference, also compellingly open, is that these things might have been occurring without Mr Ravbar’s knowledge, let alone sanctioning in advance, and that what actually happened was discrete acts of violence, not acts of violence planned and directed by Mr Ravbar?” she asked.

“That is so remote, it’s fanciful,” Mr Watson replied.

“It would mean, for example, Mr Ravbar never turned on the telly, never put on the radio, never opened a newspaper, because otherwise, wouldn’t he have come in one day and said, ‘Gee, I wonder why it’s happening to this union that the men are out inflicting violence on people all the time?'”

Mr Watson said he was adamant Mr Ravbar set a culture of coercion.

“It’s coming from the top … Ravbar had ultimate control, and it was being executed by his underlings,” he said.