22-August-2011
Portfolio Media Releases
Serious consideration needs to be given to subjecting the financial running of unions to ASIC (Australian Securities and Investment Commission) oversight.
This has been brought into focus by the pedestrian response by Fair Work Australia (FWA) in investigating the clear evidence of financial impropriety within the Health Services Union under Craig Thomson as national secretary.
It is undisputed that Thomson’s union credit card was used to purchase the services of prostitutes and he admits to having authorised the card’s statements. Could you imagine the head of a listed company approving his own expenses?
And it is clear that whoever made at least one brothel purchase had Thomson’s credit card, driver’s licence, his mobile phone and had a signature that matched his as confirmed by a handwriting expert.
Reports that Thomson’s credit card was also used for ATM cash withdrawals to the tune of more than $100,000 also beggar belief.
These issues emerged more than two years ago, yet FWA looks to be seriously flat-footed, giving the impression that it lacks the resources, expertise and independence to perform the role of union watchdog when it comes to finances and governance.
At Senate Estimates in February FWA was gagged by the government when asked about the progress it had made with its investigation. Even today if you look at the HSU web site the financial statements for 2007, Mr Thomson’s last year as union head, are missing. The link is there, but the documents are not.
And just last month the national Committee of Management passed a resolution in relation to the 2009 financial statements which included:
“They cannot be satisfied that the financial statements and notes give a true and fair view of the financial performance, financial position and cash flows of the reporting unit …” and
“They cannot be satisfied that the financial records of the reporting unit have been kept, as far as practicable, in a consistent manner to each of the other reporting units of the organisation.”
If companies were run this way their solvency would be under question and administrators would probably be called in.
The unions are multi-million-dollar enterprises entrusted with members’ funds but as the Craig Thomson affair demonstrates they are not subjected to the same standards and level of oversight as registered corporations.
Perhaps it is time for the unions to come under the remit of ASIC a watchdog with some teeth.