Nick McKenzie on Mick Gatto, the underworld, and construction corruption

Summary

Podcast Summary:

7am – Nick McKenzie on Mick Gatto, the Underworld, and Construction Corruption
Date: June 4, 2026
Host: Daniel James (Solstice Media)
Guest: Nick McKenzie (Investigative Reporter)

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Overview

This episode dives into the powerful shadow cast by Mick Gatto over Melbourne’s history of gangland activity and his deep, ongoing influence in Victoria’s construction sector. With recent police raids on Gatto’s home and major figures in the industry, host Daniel James and investigative journalist Nick McKenzie explore the unfolding battle between law enforcement and organised crime. They discuss corruption, intimidation, and the alleged entanglement of construction unions and government contracts with the criminal underworld.

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Key Discussion Points & Insights

1. Mick Gatto’s Notoriety & Underworld Legacy

[01:08–02:31]

• Mick Gatto is described as “arguably Australia’s best known gangland figure,” pivotal to the Melbourne gangland wars.

• Friends and associates of Gatto (e.g., Mario Condello, Graham Kinniburgh) were murdered, and Gatto himself reportedly survived an assassination attempt by Andrew “Benji” Veniaman. Gatto later killed Veniaman, acquitted on grounds of self-defence, cementing his legend.

  “He’s known for the gangland wars and his involvement in those... But really what he’s done for the last 30 years is ply his trade as the best known gangland fixer in Victoria’s construction sector.”
  — Nick McKenzie [02:32]

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2. Recent Police Raids and Taskforce Hawk

[02:48–04:21]

• Recent police raids targeted Gatto and his wife, who were briefly arrested, then released without charge.

• Officially, police probe “allegations of financial crime,” though Gatto claims it’s about a minor driving infringement. McKenzie suggests the raid’s true purpose was to seize devices and issue a broad deterrent warning.

• Taskforce Hawk, established in response to reporting on construction sector corruption, is focusing on Gatto as a key figure.

  “We can safely say this is a way of Taskforce Hawk actually getting through the front door of Gatto’s property... it’s saying not just to Gatto, but to the underworld, ‘We are on your tail.’”
  — Nick McKenzie [03:50]

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3. The Gatto Extortion Model in Construction

[04:44–07:15]

• Geoffrey Watson SC (noted corruption investigator) describes a system where construction companies pay Gatto to resolve site disputes, allegedly facilitated by relationships with corrupt union officials (particularly within the CFMEU).

• These “disputes” are sometimes manufactured to create the need for Gatto’s “mediation,” with companies sometimes paying massive sums for resolution.

• Allegations (not proven in court) liken this arrangement to mafia-style extortion.

  “Gatto is in cahoots with corrupt or dodgy CFMEU officials... He says to a company, ‘You hire me and if there’s a drama on a building site, I’ll sort it out because I’ve got connections at the CFMEU.’”
  — Nick McKenzie [05:29]

  “It is, according to Watson... basically a mafia style extortion rule.”
  — Nick McKenzie [06:29]

  “There are many companies, this is a fact, paying Gatto a fortune for their right to operate in the building sector across Australia. And the question remains: why?”
  — Nick McKenzie [07:15]

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4. Secret Recording—The “Menace” of Gatto

[07:27–08:20]

• McKenzie recounts a secret tape of Gatto negotiating with a developer; Gatto hints at his power to halt or disrupt construction sites, cloaked in a thinly veiled threat.

  “I can stop anyone doing anything, mate. And I say that respectfully. I don’t want to be a smartie. We can cause you grief.”
  — Mick Gatto (secret recording) [07:43]

• Despite Gatto’s denial of wrongdoing, building companies continue to pay him substantial sums, reflecting the ongoing culture of fear and intimidation.

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5. Personal Encounters: Gatto’s Intimidating Tactics

[08:20–09:30]

• McKenzie describes direct encounters with Gatto:
  He’s received warnings and menacing calls when his reporting closes in on Gatto’s activities.

  “He’s careful, but he’s told me to watch myself.”
  — Nick McKenzie [08:34]

  “You don’t print the truth, I’ve got a problem with you. If I ever see you, I’ll deal with you.”
  — Mick Gatto [08:44]

  “You don’t hire Mick Gatto because he’s an industrial relations whiz... With that [reputation] comes the air of threat, the air of menace. And anyone who says that’s not the case has rocks in their head.”
  — Nick McKenzie [09:17]

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6. Ongoing Violence & the Big Build

[10:08–11:59]

• Police also raided the property of major construction contractor Nick Marich, who employs Gatto and another alleged gangland figure, John Khoury.

• Marich is involved in massive infrastructure projects supported by taxpayer money, and police are investigating links to recent firebombings, although no charges have been confirmed.

• The discussion points to the deep infiltration of organised crime—bikie gangs, gangland “fixers”—within state-funded construction.

  “There’s organised crime, there’s gangland operations still happening as we speak in the building sector, and there’s a real struggle between law enforcement and the dark side at the moment that’s still playing out.”
  — Nick McKenzie [11:52]

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7. Government Response & Frustration with Inaction

[11:59–15:22]

• Recent government promises to give Victoria’s anti-corruption watchdog (IBAC) more investigative powers are seen as too little, too late.
  Actual reform is likely 18 months away, despite ongoing and well-documented issues.

  “It should have been in place two years ago when this stuff all started coming out... As we speak, there’s no anti-corruption agency that’s on the job looking at the way gangland figures, bikie gangs have infiltrated government projects.”
  — Nick McKenzie [12:27]

• Nepotism and corruption have led to situations where bikie-affiliated workers earn massive salaries on government jobs.

  “It’s your bickies, it’s your money... Someone who doesn’t have to rock up to work holding a stop sign because they [have] the right bikie gang affiliation can earn 300 grand a year on a government project—that is not right.”
  — Nick McKenzie [14:33]

• McKenzie expresses deep frustration at the lack of meaningful action, calling it the “most obvious corruption scandal” he’s encountered in two decades of reporting.

  “Am I frustrated? Absolutely. But I think every Victorian, every Australian should be frustrated because this is your—it’s your bickies, it’s your money.”
  — Nick McKenzie [14:22]

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Notable Quotes & Memorable Moments

• Gatto’s Justification Post-Raid:

  “The only thing I can say is when they use 20 or 30 police over a speeding fine, this country is in trouble.”
  — Mick Gatto [03:44]

• Geoffrey Watson SC on the CFMEU (Union and Crime Allegations):

  “The Victorian CFMEU under John Setka was a crime organisation.”
  — Geoffrey Watson SC [05:22]

• Reflecting on Threats as a Reporter:

  “You don’t print the truth, I’ve got a problem with you. If I ever see you, I’ll deal with you.”
  — Mick Gatto (to Nick McKenzie) [08:44]
  "You know, that doesn’t sound very nice, Mick."
  — Nick McKenzie [08:49]

• Final Frustration:

  “You’ve riled me up now. You’ve made me angry about it.”
  — Nick McKenzie [15:24]

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Important Timestamps

• [01:08] – Gatto’s underworld legend explained
• [02:57] – Police raids and Taskforce Hawk detailed
• [04:44] – The “Gatto extortion model” in construction
• [07:27] – Secret recording of Gatto threatening a developer
• [08:26] – McKenzie’s personal encounters and threats from Gatto
• [10:26] – Contractor Nick Marich’s arrest, firebombings, and the bikie connection
• [11:59] – Premier’s announcement on anti-corruption reforms
• [14:02] – McKenzie’s personal frustration and call to public outrage

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Tone and Language

The episode balances a narrative, investigative tone with moments of clipped outrage and urgency, especially from McKenzie. There’s a direct, occasionally sardonic undercurrent—particularly in exchanges recounting threats or highlighting the “absurdity” of criminals openly profiting from public funds.

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Conclusion

The episode paints a sobering picture of the depth and persistence of criminal influence in Victoria’s building sector, underscored by ineffectual government and regulatory responses. McKenzie’s reporting and personal experiences underscore how unresolved corruption issues directly impact the public, calling for broad frustration—and action—among listeners.

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For listeners who missed this episode, this summary distills the key themes, figures, and revelations, offering a comprehensive understanding of the complex entanglement of crime and legitimate business in Australia’s construction industry.

Transcript

[A]

I'm Daniel James and you're listening to 7am in Melbourne. Few names carry the weight of Mick Gaddo. For decades he's been known as a survivor of the gangland wars, a man whose influence has stretched from the city's underworld into the heart of the construction industry. This week, police raided his home. Gaddo and his wife were arrested, then released without charge. He says it's all over a driving infringement. Police say they're investigating alleged financial offense defences. But the raiders landed in the middle of a much larger fight over corruption, intimidation and alleged underworld influence inside Victoria's building sector. Today, Investigative reporter Nick McKenzie on Mick Gatto, corruption in the construction industry and the reckoning now facing the state's big Build. It's Friday, June 5th. Nick, for those who aren't familiar with Mick Gatto, can you give us a quick reminder of how big a deal he is in the Melbourne underworld?

[B]

Well, he's arguably Australia's best known gangland figure. He's certainly Melbourne's best known gangland figure. Came to massive attention in the gangland wars.

[C]

Melbourne is once again facing the spectre of gangland war with a crime family patriarch shot dead in front of his home. And just hours later, two other men were gunned down. Double fatal shooting happened late initially, his

[B]

friends were getting knocked off left, right and centre. His best mate, Mario Condello was murdered in an execution outside his house. Graham Kinneborough, the famous criminal, AKA the Munster, was also shot dead, executed at his house. And there was a period where I think Gatto thought it was coming for him. He was then confronted, according to Gatto's story, at the back of a restaurant by the most famous gangland hitman, Andrew Benji Veniaman. There was a scuffle, Gatto grabbed a pistol which he said Veniaman had and he shot Veniaman dead. Gatto was charged with murder and that became a very, very significant case. But Gatto beat that charge on self defence grounds.

[A]

For a story that's gripped Melbourne today provided another riveting chapter. Underworld figure Dominic Gatto acquitted of mur.

[D]

Thank God for the jury system, that's

[B]

all I can say. So he's known for the gangland wars and his involvement in those and that of his so called Carlton Crew. But really what he's done for the last 30 years is play his trade as the best known gangland fixer in Victoria's construction sector.

[A]

So this week police raided the home of Mick and his wife, arrested them, then released them without charge. What do we know about what's being investigated?

[B]

Well, two years ago, we began writing a series of stories. We're still writing those stories two years later. It was called the Building Bad Series. It was about allegations of significant organised crime and corruption in the construction sector across Australia, but especially in Victoria. And as a result of those still ongoing reports, the Victorian Government responded, the Victoria police responded and launched a task force called Taskforce Hawke, a specialist task force looking at wrongdoing in the building sector. One of its most obvious targets since its inception, of course, is Mick Gatto, because he's a gangland figure in the construction sector doing his wheeling and dealing. He was raided by Taskforce Hawk. What's it all about? Well, I think the paperwork is in relation to, according to the police, allegations of financial crime. Mick Gaddoes and his lawyer have both said it's to do with speeding tickets or infringements.

[D]

The only thing I can say is when they use 20 or 30 police over a speeding fine, this country is in trouble.

[B]

But I think we can safely say this is a way of Taskforce Hawk actually getting through the front door of Gatto's property. Once you're through the front door, you grab the devices, the phone, the laptop, see what else you can find. And it's an act of great deterrence. It's saying not just to Gaddo, but to the underworld, we are on your tail. We are looking at you now. Gaddo's response to it is, stop hassling me. This is a witch hunt. This is rubbish. They've taken a knife from your end of baton.

[D]

Toothpick. The toothpick. Anyway, I've got to go. Take care, guys.

[B]

Cheers. But we also know this. We know this because we've reported it now many times. Gaddo is on the payroll of many of the construction companies in Melbourne and some interstate. I'm not saying it's unlawful, that would be defamatory. But I am saying anyone who's a little bit skeptical would wonder why anyone would need to pay a gangland figure to operate on a major construction site in Victoria.

[A]

Yeah, if we go to that a little bit. Nick, you've done heaps of reporting on this. Can you tell us about what Geoffrey Watson SC described as the ghetto extortion model?

[B]

Well, so, Geoffrey Watson, sc, corruption buster of some repute. He used to be the counsel assisting at the New South Wales Anti Corruption ICAC Commission. He was hired by the CFMEU administrator to investigate corruption in the cfmeu. And what Watson says in the recent Commission of inquiry in Queensland, this is another inquiry looking at the cfmeu. He says the Ghatto business model. Effectively Gatto, is in cahoots with corrupt or dodgy CFMEU officials.

[E]

The Victorian CFMEU under John Sitka was a crime organisation.

[B]

Gatto says to a company, you hire me and if there's a drama on a building site, I'll sort it out because I've got connections at the cfmeu.

[E]

The CFMEU had built up such a momentum of authority and power that everybody was scared of them.

[B]

Suddenly there's a drama on a building site and so suddenly Ghatto's in great demand and a company will pay, let's say, a million bucks to sort out those problems. And one of the problems, the union has come on the site, they've said it's unsafe, they've sent the men into the a worker's stop that's costing the builder a fortune every day. How bad did things get in Victoria?

[E]

Oh, my God. It's out of control.

[B]

The allegation that's been put up there by Geoffrey Watson in a Royal Commission type setting, so it's protected from defamation, is it's all a setup. There's no real safety issue or problem. Gaddo engineers this issue with his mates in the union so he can cop and earn. The builder's happy to pay. They think they're getting a service. They're not. It is, according to Watson, allegedly. And again, under the protection of this commission of inquiry, it's basically a mafia style extortion rule.

[E]

And on paper they looked like so silly, so childish schoolyard bullies. And I thought, oh, this is nothing. It was then I spent some weeks interviewing people when I realised I was wrong and it was quite different.

[B]

Now, that's not proven. Gatto absolutely says it's false and no evidence has come out to substantiate it. But what we do know is this. There are many companies, this is a fact, paying Gatto a fortune for their right to operate in the building sector across Australia. And the question remains why?

[A]

He's been a central figure in your building. Bad revelations in 2024 and before that, you uncovered a secret recording of Gatto. Can you remind the people at home of what was on that recording?

[B]

Oh, it was just a classic. Gatto doing his business, how he does his business. He was calling up a developer. He'd been hired to mediate or intervene in a dispute. And what Gatto says on this tape, he says it carefully, but there is an unmistakable air of menace.

[D]

I can stop anyone Doing anything, mate. And I say that respectfully. I don't want to be a smartie. We can cause you grief.

[B]

What he's saying is I can stop building sites from operating as they should, costing you a hell of a lot of money, effectively, is what I think that means. Now, again, I'm not saying that's a direct threat, I'm not saying it's unlawful. The developer in question actually spoke out and said, basically, why should we involve a gangland figure in a commercial dispute in a building site? No, thank you. But also, what we know is the builder at Hyde Gatto, did pay Mick Gatto a significant amount of money to intervene. And this is the way the building industry has worked. And unfortunately, it's the way the building industry still works.

[A]

In all of your reporting on this, Nick, have you ever received a call from Mick Gatto yourself?

[B]

I've dealt with Mick Gatto a number of times. I mean, I call him as a reporter. I have to put questions to him. He calls me from time to time when he hears that I'm calling around about him, I get the ugly side of Mick Gatto. He's careful, but he's told me to watch myself.

[D]

You don't print the truth. I've got a problem with you. If I ever see you, I'll deal with you.

[B]

You know, that doesn't sound very nice, Mick.

[D]

Well, I mean, you know, I'll probably spit at you or something.

[B]

You know, I think the way he treats a journalist doing their job and that's all I'm doing, says a lot about how he actually operates his business. You don't hire Mick Gaddo because he's an industrial relations whiz who understands employment law and the ins and outs of an enterprise bargaining agreement. You hire him if you're a building company because he's the most notorious figure in Victoria's gangland. And with that, he doesn't have to say a word. With that comes the air of threat, the air of menace. And anyone who says that's not the case has rocks in their head.

[A]

Coming up, another arrest, another firebombing, and a whole lot of frustration.

[F]

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[A]

Spin Quest is a free to play social casino. Void where prohibited. Visit spinquest.com for more details. Nick Big build contractor Nick Marriage was also arrested a few days ago. Who is he and what is his connection to Ghetto?

[B]

Nick Marich, classic case study of a building industry success story. This guy runs a piling company, Earthworks company are doing significant work preparing things for a major government infrastructure project. He'll come in first and he'll do those works that are required to begin that building process. And he's done extremely well. His company is called lte. He's booming in Victoria, he's booming in Queensland. He's on government jobs, taxpayer jobs in both states. But he's also got Mick Gaddo and another alleged gangland figure, John Khoury, on his payroll. He's tied up with the Comanchero Bikie gang. Why does a very successful building company owner need to work with bikies and gangland figures? What's he getting from them now? The police a few days ago raided his one of his properties. They've grabbed his phones and according to the police statement, it's over an alleged firebombing of a construction industry person's home. A number of buildings, properties, cars, machinery have been torched all across Melbourne. Police are obviously investigating whether Marich has any connection to that. I'm not saying Marich's involved in that, but the police are curious as to what he knows about these firebombings and they raided his property just a few days before Gaddo's. All unanswered questions, I guess. Boil it right down. What does it all mean? It means there's organised crime, there's gangland operations still happening as we speak in the building sector, and there's a real struggle between law enforcement and the dark side at the moment that's still playing out.

[A]

The raids come after an announcement from Victorian Premier Jacinda Allen this week that a panel of experts will be looking at boosting powers of the anti corruption watchdog ibac, so it could look into corruption in the construction industry. Do you think that's enough when it comes to tackling this issue?

[B]

The Victorian premier, as you say, announced that our anti corruption body in Victoria will get new powers maybe in 18 months to follow the money from major government projects to gangland figures. It looks a lot like a belaying tactic because it should be in place, not now. It should have been in place two years ago when this stuff all started coming out. It's much needed and it's not yet in place. So as we speak, there's no anti corruption agency that's on the job. Looking at the way gangland figures, bikie gangs have infiltrated government projects. Why does this matter? I mean, this is the money of your listeners. Anyone listening to this podcast is funding these projects and by extension funding the gangland figures that are feeding off them. It's leading to increases ultimately in house prices and rail projects, road projects. So not enough is clearly being done. A real issue is lots of the dodgy behaviour in the construction industry. It might be unlawful and certainly unethical or corrupt, but it may not be criminal. Bikie gang member gets a sweetheart job, care of union corruption on a big government project and hires half his bikie gang as traffic controllers on 300 grand a year. It's certainly corrupt. It may not be criminal. The act of nepotism, it's a grave corruption. Cops can't investigate that, but an anti corruption agency can if it has the power. And the problem, Victoria, right now is no agency has the power to investigate this sort of conduct.

[A]

And finally, Nick, I've listened and read a number of interviews with you in relation to the corruption on the or the alleged corruption on the Big build. And it seems to me that you've become more and more frustrated with the inaction when it comes to the multiple allegations flying about. Am I right?

[B]

I mean, how can you not be frustrated? I'm a taxpayer like everybody else and you know, my 20 years as an investigative reporter, never have I come across such an obvious corruption scandal that's been met with such a poor response. Now let's bring this back to where we started. Mick Gatto on paper has been rated for relatively minor offending. It's just alleged and he denies it. That's to say nothing of all the many hundreds of millions of dollars on major government projects that have gone to bikie clubs and other dodgy people. Companies that should never have got contracts, which have got contracts. They're gangland aligned and they're making money now. So am I frustrated? Absolutely. But I think every Victorian, every Australian should be frustrated because this is your, it's your bickies, it's your money. Doesn't stand to reason that a nurse or a teacher gets, let's say on a lucky, a well paid one, ninety grand a year. I'm flucking that figure out, but thereabouts. And someone who doesn't have to rock up to work holding a stop sign because they pardon the right bikie gang affiliation can earn 300 grand a year on a government project that is not right. And until that's exposed and stopped, everyone in the public, I think, should be frustrated, should be angry and. And I'm certainly going to be channeling that anger and frustration towards continuing investigations.

[A]

Nick McKenzie, thank you so much for your time.

[B]

You've riled me up now. You've made me angry about it.

[A]

But my sorry, mate.

[B]

My pleasure.

[A]

Also in the news, the PM says we have an ideological disagreement with the US over plans to impose a 12.5% tariff on goods from Australia. The US has announced plans to impose the new tariff on dozens of countries it says have failed to prevent the importation of goods made with slavery and forced labor. Anthony Albanese says the tariff is unjustified and inconsistent with our free trade agreement with America. And an update on the story we brought you last week about the legal aid crisis in the Northern Territory, which has seen dozens of people, including children, forced to represent themselves in court on serious charges. Criminal lawyer Clancy Dane had been fighting for defendants right to a fair trial, which in most cases means the right to legal representation. Well, this week he won the fight in the Supreme Court, which means if people aren't able to get access to a lawyer, the local court will be able to put their cases on hold until they can. I'm Daniel James. You've been listening to 7am we'll be back tomorrow.