HSU corruption campaigner accused of misconduct

EMMA ALBERICI, PRESENTER: The campaign to clean up alleged financial misconduct at the Health Services Union is being taken directly to Canberra.

At the same time, the woman at the centre of the campaign to rid the union of corruption has herself been accused of financial misconduct and been criticised by the union’s national executive.

But Kathy Jackson says she’s going to the national capital to lobby all parties to support her.

From Melbourne, Hamish Fitzsimmons reports.

HAMISH FITZSIMMONS, REPORTER: The executive of the Health Services Union has lost patience with what it says is an internal brawl for control of its branches that’s become very public.

CHRIS BROWN, ACTING NATIONAL PRESIDENT, HEALTH SERVICES UNION: The factional fight that’s occurring has really started to get a bit confused with the issue of trying to clean up the union and identify the areas where there may have been financial improprieties.

HAMISH FITZSIMMONS: That impropriety revolves around allegations former union official, now federal Labor MP Craig Thomson used a union credit card for personal use, including cash advances and prostitutes.

HSU national secretary Kathy Jackson has been credited with leading the push for inquiries into Mr Thomson by Fair Work Australia. But the union’s executive says it’s also been deeply involved.

CHRIS BROWN: Whilst Kathy Jackson signed the letter of referral to Fair Work Australia, it was in fact a resolution of the national executive that had authorised that to occur. And there were a number of individuals on the executive, including myself, that put a lot of work into trying to identify what actually had occurred with the finances of the union.

HAMISH FITZSIMMONS: Ms Jackson says complaints against Craig Thomson were first made to Fair Work Australia three years ago.

Industrial Relations Minister Bill Shorten says if charges are recommended, the report may never be released.

Kathy Jackson is critical of the delays and now says she’ll take her complaints to Canberra.

KATHY JACKSON, NATIONAL SECRETARY, HEALTH SERVICES UNION: What I will be seeking also is meetings with the Government, the Opposition, the independents and obviously the Greens. And I will take my concerns to them and I hope they treat them seriously.

HAMISH FITZSIMMONS: The HSU’s president and former ALP vice president Michael Williamson is, along with Craig Thomson, under New South Wales Police investigation for allegations of financial misconduct, which they both deny.

The HSU national executive says Kathy Jackson has a conflict of interest speaking out about the investigations, saying she wants to wrest the HSU’s east branch from Michael Williamson’s control.

KATHY JACKSON: I do not want Michael Williamson’s job. I’m prepared to walk away at the end of this.

HAMISH FITZSIMMONS: Last year the HSU donated $600,000 to the ALP before it severed ties over the Thomson affair. The union admits it’s got an image problem.

CHRIS BROWN: If there are people that have done wrong, they should be dealt with by the appropriate authority, and once that’s done, I think we can get back to putting our full focus and attention onto our members and onto getting good outcomes for our members.

HAMISH FITZSIMMONS: There’ve been regular personal attacks on Kathy Jackson. Recently a former union economist claimed she laundered money and destroyed documents. Ms Jackson says the claims are completely fabricated and that her opponents will try any smear, no matter how outrageous.

KATHY JACKSON: Here they are smearing me, here they are involving my family, people that I love. The damage to the Labor Party is appalling, and I regret that, but it’s not of my making.

HAMISH FITZSIMMONS: Observers say the brawling within the HSU wouldn’t be so public in a different political climate.

NICK ECONOMOU, POLITICS, MONASH UNI: It’s only because of the link between the union and Craig Thomson and the fact that the Gillard Government really depends on him hanging onto his seat in whatever circumstance that there’s this great interest in what’s otherwise a fairly minor internecine battle.

HAMISH FITZSIMMONS: It’s a battle that could irreparably damage the Gillard Government should it force a by-election in Mr Thomson’s marginal seat.

Hamish Fitzsimmons, Lateline.

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