• Notices issued to individuals involved
• Fair Work Australia instructing lawyers
• Union 'failed to protect members'

NSW Police raid the Pitt St offices of the Health Services Union. Picture: John Grainger Source: The Australian

CRAIG Thomson today denied any wrong-doing while national secretary of the Health Services Union after Fair Work Australia pointed to an abject failure to control finances of the union.

The former Labor MP, now an independent, said he would strenuously defend himself against any proceedings brought against him based on the FWA findings.

General manager of FWA, Bernadette O'Neill, today said she could not name those mentioned in the 1100-page document because she had no protection against defamation proceedings.

But she had forwarded the document to a Senate committee which could release the findings under privileged.

Mr Thomson attacked FWA and its report.

"This whole investigation has been nothing short of a joke,'' he said.

"It is unprecedented that an investigative body has such little confidence in its report that it seeks parliamentary privilege as a condition of the report's release.''

Mr Thomson said the Commonwealth Director of Public Prosecutions, which has forwarded the FWA findings to NSW and Victorian police, "has made it clear that there are no findings of a criminal nature in the report''.

"The Police have made it clear that there is nothing in the Fair Work Australia Report that is of a criminal nature. I'm very glad the police have seen it, because that is what I have always called for, for police to be handed the Fair Work Australia Report.''

Mr Thomson is linked to "the great majority'' of instances of inappropriate spending detailed in the Fair Work Australia, according to details released today.

These alleged breaches included spending of union money on "escort services, spousal travel, and excessive travel and hospitality expenditure".

The investigation of finances of the Health Services Union by FWA claims it found "an organisation that abjectly failed to have adequate governance''.

Proceedings based on the findings will be launched in the Federal Court. But these are likely to be under civil law and not criminal charges.

The FWA's Bernadette O'Neill said the contraventions related to the union's head office and two current officials, a former auditor, and one former official.

Mr Thomson has said he believes his name is mentioned in the report. He was the national secretary of the HSU from 2003-07.

And today he linked current HSU national secretary Kathy Jackson and East Branch president Michael Williamson to the group figuring in the FWA allegations.

"The investigation reveals an organisation that abjectly failed to have adequate governance arrangements in place to protect union members' funds against misuse,'' wrote Ms O'Neill.

"Substantial funds were, in my view, spent inappropriately including on escort services, spousal travel, and excessive travel and hospitality expenditure.

"After considering the report fully I have concluded that it is in the public interest to act on all of the findings made by the delegate (who investigated the HSU). I have decided that the public interest strongly favours acting wherever possible to ensure that organisations and their officers and employees are properly held to account for the expenditure of the union's funds.

"I consider that taking this action will have an important general and specific deterrent effect on this and other organisations.''

Mr Thomson said the findings were based on allegations and had not been tested in a court.

"These assertions are not based on proper evidence,'' he said.

"These allegations are burdened with claims by two people, Michael Williamson and Kathy Jackson, who are currently under criminal investigation.

"The investigation conducted by the Fair Work Australia delegate was not authorised and the report is beyond the power of Fair Work Australia.

"The investigation was not properly conducted and crucial witnesses were not interviewed. The report indicates bias on behalf of the Fair Work Australia delegate and a lack of fairness.''

HSU officials to be taken to court by Fair Work Australia | News.com.au