HSU money checks ‘poor governance’: Combet

Senior government minister Greg Combet says the lack of financial controls in the Health Services Union’s East branch is “poor governance”.

Union council members on Monday received an interim report into the East branch’s governance which found there was no procurement policy, no tender for large supply contracts, no pricing comparisons and no credit card policy or budgetary controls.

The report, by Ian Temby QC and accountant Dennis Robertson, found the branch’s internal controls were inadequate and urgently needed review.

“It’s certainly surprising from what I have seen of the report that there were no, it was described as no, financial controls and no policy in relation to the use of union credit cards,” Mr Combet told ABC TV on Tuesday.

“That is pretty poor governance in anyone’s language.”

The former ACTU secretary said poor financial control was one of the reasons the federal government was seeking to have an administrator appointed to the East branch.

Mr Combet said he was disappointed for the members of the HSU and people should focus on running the union in an appropriate way with proper governance.

“It has pained me a lot to see the saga that’s played out with the Health Services Union.”

Allegations against the branch’s general secretary Michael Williamson formed the basis of the inquiry.

It did not examine allegations against the now independent MP Craig Thomson who was the HSU’s national secretary before entering parliament in 2007.

Prime Minister Julia Gillard announced on Sunday that Mr Thomson would sit on the crossbenches as an independent MP pending a Fair Work Australia investigation into claims he misused his union credit card including to pay for prostitutes.

Mr Thomson denies the allegations.

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