craig thompson vindicated

Tuesday, August 21, 2012 » 11:42pm


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Craig Thomson says he's been vindicated after a review found inherent flaws in FWA'S inquiry into the HSU.


An independent review of former Labor MP Craig Thomson and the HSU vindicates his claims that findings by Fair Work were flawed and biased, he says.

The review by business advisory group KPMG was launched after concerns were raised FWA had taken too long to investigate financial mismanagement by the Health Services Union's (HSU) national office and in its Victoria No.1 branch.

The review report, released on Tuesday, found that FWA was inexperienced in such probes and had no 'relevant investigation standards and procedures'.

There was also a lack of adequate documentation, insufficient resources and the investigators 'did not consider all potential sources of information'.

However, the review found that FWA had conducted its interviews with witnesses appropriately.

Mr Thomson said it backed his position that the FWA investigation was flawed and biased - claims he made in parliament earlier this year.

FWA's investigation made a series of findings that credit cards were misused and union rules contravened when Mr Thomson was the HSU general secretary from 2002 to 2007.

FWA is preparing Federal Court cases against former HSU officials, including Mr Thomson, relating to the findings of its two investigation reports.

Mr Thomson said he was not sure how anyone could prosecute after the KPMG report.

'It is absolutely damning and scathing in every respect of that report,' Mr Thomson said.

'If anyone thinks they are going to go out and take civil action based on this report then they are living in dreamland.'

Workplace Relations Minister Bill Shorten said he did not draw the same conclusion about the potential success of a case and that Mr Thomson deserved his day in court.

'Whatever happens in court will be tested in court,' Mr Shorten told Sky News.

The federal government had accepted the findings of the KPMG report, which was both 'tough and honest', Mr Shorten said.

The federal government has pledged to legislate any changes recommended by KPMG.

The minister would not be drawn on whether Mr Thomson would return to the Labor party fold, after the now independent MP told reporters it was an 'issue for the future'.

Opposition workplace relations spokesman Eric Abetz said FWA had either engaged in an institutional go-slow or administrative incompetence.

'It would appear from the KPMG report that ... in fact it was a bit of both,' Senator Abetz told reporters.

'The evidence is there Fair Work Australia did not treat this matter seriously as it should have done.'

KPMG had identified gross incompetence in the investigation of the matter but a fresh investigation was not required because the report did not distract from the FWA findings against Mr Thomson and the HSU, Senator Abetz said.

'I don't think anything changes in relation to the findings and the prosecution of these matters in relation to the federal court,' he said.

'For Mr Thomson to claim somehow that this vindicates him is a complete nonsense.

'Mr Thomson, we now know, will say anything to try and justify himself.'

The FWA's HSU national office probe began as an inquiry in April 2009, which led to an investigation which concluded in March this year.

The Victoria No.1 branch probe began in January 2009 and ended in December 2011.