This website has been writing about the current fraud and theft going on at the Health Services Union for over 3 years and this week the Fair Work Commission (FWC) finally stepped in with a written warning regarding possible legal action if the stealing doesn’t stop. Bill Shorten’s supporters and friends Diana & David Asmar, Andrew Landeryou and his wife Kimberley Kitching make Craig Thomson and Kathy Jackson look like amateurs when it comes to stealing from low paid union members but that doesn’t worry Mr Shorten.
The FWC warning relates to the multi-million-dollar fraud at the HSU Victoria Number 1 Branch which is clearly shown by the financial records and resulted in a $1.7 million loss in the 2015 financial year which came after a $1.5 million loss in the 2014 financial year.
This is extremely embarrassing for the union movement and the Labor Party but more so for Bill Shorten because the crimes are being committed by his personal friends and supporters in the Labor Party. The fact that this is being exposed in an election year makes it a thousand times worse for Mr Shorten. If the Australian public want to know what a vote for Mr Shorten means for Australia, they should have a good look at this scandal.
In 2012 Bill Shorten had the HSU put into administration and he claimed he did it because of corruption. At the 2012 union elections he had his own cronies elected to power at the Victoria Number 1 Branch with the help of financing from union slush funds.
The Fair Work Commission warning letter (Click here to read the full letter)
It was first reported in The Age on Tuesday (23/2/16) that the Fair Work Commission had issued a warning to the HSU Victoria Number 1 Branch regarding their financial scandal. The FWC raised some of the key financial failings and made a point of reminding the union executive they face possible civil action if they bankrupt the union. Below is an extract from the letter.
The Statement of Profit & Loss reported a loss of $1,674,646 in 2015. The 2014 comparative reported a surplus of $735,745 although this included revenue received from the ‘Profit on Sale of Property’ of $2,238,012. Excluding this one-off property sale, the 2014 result would have been a loss of $1,502,267.
The Statement of Financial Position discloses Net Assets as at 30 June 2015 of $878,793 which is down from $2,553,439 as at 30 June 2014. As at 30 June 2015 current assets of $437,916 are significantly less than current liabilities of $926,859.
The Statement of Cash Flows discloses a cash balance of $83,695 as at 30 June 2015 which is down from $2,423,455 as at 30 June 2014. Trade creditors also increased to $574,073 as at 30 June 2015 from $38,185 as at 30 June 2014.
During the last two financial years the HSU-VIC1 has incurred significant operating losses, cash balances have reduced appreciably and trade creditors have increased substantially. As at 30 June 2015 current liabilities significantly exceeded current assets. Due to these factors, FWC has concerns about the on-going solvency of the HSU-VIC1.
I remind the officers of the union of their duties under sections 285 and 287 of the Fair Work (Registered Organisations) Act 2009 in relation to the financial management of the union. These sections require officers to exercise their powers and discharge their duties with care and diligence, in the best interest of the organisation and not to cause detriment to the organisation (these are civil penalty provisions). It is incumbent on the officers of the union to take appropriate steps to address the net operating loss and ensure its on-going solvency.
In other words, the FWC has said if you keep stealing from the union we will sue you personally. This would include the management and also the Branch Committee of Management (BCOM) who are meant to have oversight of Branch Secretary Diana Asmar. The FWC could and should also sue the HSU National Executive if the branch does go bankrupt as it is well known and a running joke in the Labor Party and Union movement that Bill Shorten’s crew are ripping off the HSU Victoria Number 1 Branch.
I am told that the HSU National Secretary Chris Brown continually lies to members and tells them that the national Executive has no power to do anything about Diana Asmar’s fraud and theft. This is easily proven to be a lie because in recent times the HSU National Executive has taken action against Michael Williamson, Craig Thompson and Kathy Jackson to recover member’s money.
The HSU National Executive are obviously aiding and abetting the fraud by helping conceal it to stay on good terms with Labor Party leader Bill Shorten.
I dissected the 2014 Financial Report in an article I posted in February 2015 titled “Bill Shorten’s supporters involved in multi-million-$ fraud at the HSU” (Click here to read) You can read it yourself but I want to make 2 relevant points. Point one is at one section of the article I wrote:
“Take the $2,238,012 profit from the sale of the building out of the 2014 finances and the reported $735,745 profit becomes a $1,502,267 loss.” and above in the FWC letter they wrote:
“The 2014 comparative reported a surplus of $735,745 although this included revenue received from the ‘Profit on Sale of Property’ of $2,238,012. Excluding this one-off property sale, the 2014 result would have been a loss of $1,502,267.”
Looks like Kangaroo Court of Australia might have a fan at the Fair Work Commission although they did state a fairly obvious point that any fraud investigator would pick up. But the real point is that the FWC have been aware of the financial troubles for over 12 months, since the very suspicious 2014 Financial Report loss of $1,502,267, and taken no action.
The second point is the wages blowout seems to be one of the main financial expenses they are using to steal the money.
Total Wages in 2013 was: $1,820,807
Total Wages in 2014 was: $3,451,989
Total Wages in 2015 was: $2,910,451
Why have wages blown out so much? It is well known that Asmar has employed a long list of union and Labor Party cronies who do literally nothing for their money. How can wages legitimately increase by $1,631,182 from 2013 to 2014 which is almost double? It couldn’t! Wages have decreased in 2015 but are still over a million dollars more than 2013 and cannot be justified. I am reliably told that the service the union provides has decreased dramatically, not increased as should be the case with the extra wages bill.
Is Diana Asmar running a 7-Eleven payroll scam?
The 7-Eleven convenience stores are in the middle of a national scandal were they ripped of employees’ wages. One of the scams that 7-Eleven owners used was to pay employees the correct wages into their bank accounts then make them pay some back in cash.
I think Asmar and Co might be using a similar scam. Pay union and Labor Party cronies money to do nothing then get some of the money back in cash. It is about the only thing that would explain why wages have skyrocketed but service from the union for members has become a joke as they do almost nothing for members.
2015 Interview with Sue Hay
I went to Melbourne in June 2015 and recorded the below interview regarding the corruption going on at the HSU Victoria Number 1 Branch. It is worth watching again given the above FWC letter as it supports the allegations made in the below interview.
The interview is with Sue Hay who was at the time of the interview a delegate for HSU members at the Monash Medical Centre. Ms Hay is not an employee of the HSU but previously liaised with the HSU on behalf of members who work at the Monash Medical Centre. Ms Hay has a good knowledge of the people involved and what is happening inside the HSU Victoria Number 1 Branch which at the time was still under investigation by the Royal Commission.
The further you look the worse it gets
No need to look further to know there is something badly wrong at the HSU but if you do you will see that the people running the show at the HSU have previous form on the board for fraud and theft. For example, Kimberley Kitching’s husband Andrew Landeryou is a known union fraudster and thief and is also Bill Shorten’s good friend. Diana Asmar fled her role with Darebin Council in 2013 while making legal threats to the Victorian Ombudsman George Brouwer if he released a report which included allegations of bribery and theft while Diana Asmar worked there. (Click here to read more)
The financial losses under the leadership of the Asmars, Landeryou and Kitching happened while they were under investigation for corrupt and criminal conduct by the Trade Union Royal Commission and the Fair Work Commission. This seems to explain the $1.4 million in legal fees in 2015. The Royal Commission recommended criminal charges against Diana Asmar, Kimberley Kitching and five others (Click here to read) and the FWC found that Asmar and Kitching had acted corruptly and lied to the commission. (Click here to read)
Also worth noting is recent allegations that HSU Victoria Number 1 branch has also been used under Asmar’s management for branch stacking in the Labor Party which David Asmar and Andrew Landeryou are notorious for. (Click here to read more)
The Fair Work Commission is long overdue taking action and has probably done too little too late, but it is a step in the right direction. It FWC warning letter also vindicates the work many HSU members have done to expose the corruption and also the numerous articles this website has published.
Please use the Twitter, Facebook and email etc. buttons below and help promote this post.
This website is independent and reliant on donations to keep publishing. If you would like to support the continuance of this site, please click on the button below to donate via PayPal or go to the donations page for other donation options. (Click here to go to the Donations page)
If you would like to follow this website, you can by email notification which is at the top right of this page and about twice a week you will be notified when there is a new article.
You can also support this site by buying a t-shirt or coffee mug at my online shop (Click here to visit the shop)
Thank you for your support.