thomson charged, page-4

Kincella,
Thomson is the gift that keeps on giving for the Lib/Nat coalition.

There is much, much more to come.

Add in the Gillard Slater & Gordon matters, and well, it would seem there are good times ahead.

Fair Work Australia charges Craig Thomson over union funds by: EAN HIGGINS From: The Australian October 15, 2012 2:36PM Increase Text SizeDecrease Text SizePrintEmail
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Fair Work Australia has laid charges against Independent MP Craig Thomson alleging he misused Health Services Union funds. Picture: Kym Smith Source: The Australian
FAIR Work Australia has laid charges against independent MP Craig Thomson, alleging he broke industrial laws and union rules in splurging hundreds of thousands dollars of union funds on prostitutes, spousal travel, and high living.
FWA spokeswoman Diana Lloyd confirmed to The Australian that civil charges were filed in the Federal Court this morning, and are due to be served on Mr Thomson.

Ms Lloyd said FWA would be seeking "pecuniary penalties, as well as compensation" from Mr Thomson.

The move follows FWA's three year investigation into allegations Mr Thomson, when he was Health Services Union national secretary between 2002 and 2007, misused his union credit cards for cash advances without receipts, the services of escort agencies, and air tickets for his then wife Krista.

General Manager of Fair Work Australia Bernadette O’Neill confirmed the statement of claim was based largely on the findings of the extensive investigation however, it also included several additional allegations in relation to the alleged misuse of union monies.

...She said the claim included 37 alleged breaches of general duties imposed on officers of registered organisations and 25 alleged breaches of HSU rules.

“I have not taken this action lightly. I am satisfied that it is in the public interest to pursue the allegations in the documents filed in the Federal Court today and consider that there is a reasonable prospect of success ” Ms O’Neill said.

“If successful I will be seeking the imposition of pecuniary penalties relating to each of the 37 alleged contraventions where penalties are available.

“I will also be seeking orders requiring Mr Thomson to pay compensation for losses allegedly incurred by the HSU by reason of the alleged breaches of general duties should they be proven.”

The maximum pecuniary penalty that can be imposed by the Court in respect of each contravention of the general duties is $6,600 for an individual. Pecuniary penalties are not available for breaches of union rules.

FWA's report into the national office also found Mr Thomson had appointed staff without the appropriate union authorities, including two people who worked on his electoral campaign in his marginal NSW central coast seat of Dobell in 2007, which he won for Labor but now holds as an independent since Julia Gillard encouraged him to leave the ALP.

The FWA report, released in May, found 105 contraventions of civil penalty provisions, and another 76 contraventions of union rules, allegedly committed by Mr Thomson, national secretary Kathy Jackson, then national president Michael Williamson, an auditor, and the union itself.

FWA attributed the vast majority of the alleged civil penalty contraventions and rule breaches to Mr Thomson, and it is not immediately known whether charges will be laid against others.

In a statement at the time of the report's release, FWA general manager Bernadette O'Neill said:

"The investigation reveals an organisation that abjectly failed to have adequate governance arrangements in place to protect union members' funds against misuse. Substantial funds were, in my view, spent inappropriately including on escort services, spousal travel, and excessive travel and hospitality expenditure."

Mr Thomson has consistently denied he has engaged in any wrong-doing, rejecting the allegations against him.

The FWA action against Mr Thomson, being of a civil rather than criminal nature, has no direct bearing on his legal ability to continue in parliament, though it would be likely to embolden the federal coalition to apply further pressure on him to resign.

Since becoming an independent Mr Thomson has continued to support the government.

If he were to give up his seat, Dobell would be likely to fall to the Liberals at the subsequent by-election, further evening the numbers in parliament and making it difficult for Labor to continue to govern.

Two police investigations are separately looking into alleged criminal misconduct by Mr Thomson, and are well advanced.

Victorian police are examining whether the alleged misspending of union funds by Mr Thomson constitutes fraud.

NSW police Strike Force Carnarvon is examining allegations raised by Ms Jackson and other union officials claiming Mr Thomson, and Mr Williamson, received secret commissions in the form of credit cards on the account of a graphic designer who had a $680,000 a year contract with the union, John Gilleland.

Mr Thomson, Mr Williamson, and Mr Gilleland strenuously deny the allegations.

An MP must resign if he or she is convicted of a criminal offence carrying a penalty of one year or more in prison, or if declared bankrupt.

Earlier this month Mr Williamson was charged with interfering with Strike Force Carnarvon's investigation, and he is due to face court later this month.