Sky News8 May 2012

• Bill Shorten disturbed and disappointed by HSU report
• Report revealed member funds spent on escorts, travel
• Thomson claims he didn't notice the bills on his card

The government hopes all eyes are on the budget today while new allegations against Craig Thomson arise.

Bill Shorten admonishes HSU conduct. Picture: Ray Strange Source: The Advertiser

CRAIG Thomson didn't notice that bills for Sydney escort services had been put on his Health Services Union credit card, the former Labor MP told investigators.

It wasn't raised with him by anyone else, Mr Thomson told Fair Work Australia according to documents released last night by a Senate committee.

But he did know that another union official, Jeff Jackson, had repaid $15,000 in union money spent on prostitutes. The FWA could not find evidence of anyone having paid back money.

The former Labor MP, now an independent, was confronted by FWA investigators with six occasions when his cards were used to pay for prostitutes.

The investigators at one point had to engage in a transcontinental hunt for who wielded the credit card and where.

The FWA investigators found Mr Thomson's Mastercard had been used to pay $330 to an escort service Aboutoun Catering, which operated in all states except Victoria and Queensland, on March 26, 2003.

Before then the report shows that on February 21, Mr Thomson's Diners Club card was used to pay for his $856.62 Qantas return flight from Melbourne to Perth, the same amount for the same flight for wife Christa Thomson, and the same flight and fare for Karen Walton. He attended a HSU executive meeting in Perth.

In addition, the card was used to pay for $270 worth of cab travel between February 17 and February 22.

On February 18 a union credit card was used to withdraw $300 from an ATM in Sydney, and on February 24 $300 from an ATM in Fremantle.

"I consider that Mr Thomson used his CBA Mastercard to purchase $330 in escort services from Aboutoun either during his visit to Sydney on 17 February 2003 or while in Perth on 26 February 2003," said the FWA investigator.

Earlier FWA general manager Bernadette O'Neill said she was sending the 1100-page document to the Education and Employment Committee which could name people without risk of defaming anyone.

The document has been kept confidential until last night but Ms O'Neill said it showed an unnamed person was alleged to have spent union funds inappropriately on escort services, spousal travel and excess travel and hospitality.

The FWA detailed an interview with Mr Thomson, who was HSU national secretary from 2003-2007 when he left to stand for the win the NSW central coast seat of Dobell for Labor.

He told investigators of the escort services charges: "I wasn't aware and didn't notice those on my credit card.

"It wasn't raised with me that there was no receipt for it, otherwise I would have made some inquiries as to what it was.

"I think it's called Keywed Restaurant or something like that. That didn't stand out, you know, to me. I just didn't notice that it was there."

On March 11, 2003, Mr Thomson's credit cards were used to pay two separate accounts with a Sydney brothel, each for $570.

"Do you recall these transactions?" asked the investigator. "No, I don't," Mr Thomson replied.

The Opposition is certain to use the findings to attack the Government and Mr Thomson, and disrupt the selling of tonight's Budget.

"The volume of the findings is disturbing. It is concerning," said Workplace Relations Minister Bill Shorten.

FWA said it was powerless to do anything about credit card use that occurred after Mr Thomson resigned from the union in December 2007, but it found three contraventions of workplace laws in relation to his election spending.

In the period after the 2007 federal election until February 25, 2008, Mr Thomson spent $1425.62 on taxis, a meal, parking and newspaper subscriptions, the report says.

The investigation found "no documents" had been produced to show the union's national council or national executive had authorised Mr Thomson to use the Mastercard or Diners Club cards after his resignation.

Mr Thomson told investigators he did not have a "clear recollection" of the credit card use, but he issued a statement yesterday denying any wrongdoing and said he would defend all claims in court.

The FWA investigation also found just over $196,000 of union members' funds was used in connection with two employees who were engaged in election activities for Mr Thomson and $71,300 was spent directly on the campaign.

While Mr Thomson said all of the spending was for "legitimate HSU purposes", according to the report, investigator Terry Nassios found that neither the union's national executive or national council had authorised the spending.

Of the 181 total contraventions of workplace laws and union rules identified in the report, 156 relate to Mr Thomson, who became union secretary in August 2002.

The FWA will take all 181 matters to the Federal Court.

One of the contraventions relates to general secretary Kathy Jackson and five relate to stood-aside president Michael Williamson.

The remainder relate to the national office and to former national auditor Ian Dick.

In an interview during the investigation, Mr Thomson denied using a HSU credit card to procure escort services.

But the investigator found "the preponderance of evidence is such that I can only conclude that it was indeed Mr Thomson who used his credit card to spend the amount of $5793 for the procurement of escort services.

"I have found that Mr Thomson has expended HSU funds for the procurement of escort services for no legitimate HSU purposes," he wrote in the report.

FWA found a union rule breach and three contraventions of workplace laws relating to the escort services payments, with the report saying the funds "were not expended ... on a purpose reasonably incidental to the general administration of the HSU".

- with AAP

Bill Shorten: HSU conduct 'disturbing, disappointing' | News.com.au