Report Confirms Abuse in HSU East Funds Handling

More charges of Health Services Union (HSU) funds misuse were confirmed Monday on union officials, similar to charges made by HSU Executive President Kathy Jackson on embattled MP Craig Thomson.

The final report by Ian Temby and Dennis Robertson confirmed that that there was excessive claims on credit cards, misuse of HSU money, nepotism and poor governance by union officials.

Of $20 million payments made by HSU made without competitive tenders, over $5 million were directly paid to firms run by Michael Williamson, the national general secretary of HSU East.

At the same time, his wife, Julieanne Williamson, was paid $384,625 for performing archiving work from 2005 to 2009, while HSU paid $1.5 million to purchase and renovate a warehouse used by the Williamson son, Christopher, who was also employed by the union.

Mr Williamson's final salary was at $395,000 annually, which represented a 25 per cent hike from the previous year. Another 12 HSU East officials were paid at least $130,000 each yearly until September 2011.

Due to wrong procurement practices which Messrs Temby and Robertson described as very inadequate, a supplier - Access Focus - sold HSU East business cards, water bottles, beanies and membership books that were 100 to 300 per cent higher than industry prices.

HSU East officials spend an average of $600,000 yearly the past four years on union credit cards due to lack of guidelines on its use and expense reimbursements, Mr Temby said.

Mr Williamson went on leave in late 2011 after New South Wales police initiated an investigation into corruption charges against HSU officials. Mr Thomson was kicked out of the Labor party and is neither accepted by the Coalition.

Federal Workplace Relations Minister Bill Shorten said the HSU final report does not reflect trade unions in Australia.

"The vast majority of Australian trade unions, trade unionists, people representing trade unions, work very hard and their conduct is exemplary.... I don't think a few rotten apples should be allowed to describe the whole labour movement in Australia," the minister was quoted by ABC.