The MSAV, VPA and AHP are component associations of the HSU Victoria Number 4 Branch. Our associations joined the HSU in the 1990s after the abolition by the Kennett government of the Victorian Industrial Relations Commission. These three Victorian unions (MSAV, VPA and AHP) formed the Victoria Number 4 Branch of the HSU, a federally registered Union, in order to be able to obtain federal awards and agreements via the (then) federal Commission, the AIRC.

Over the last two years, the media has from time to time reported allegations that a previous national secretary of the HSU ‘rorted’ Union funds, including alleged cash withdrawals of more than $100,000 and payments to “escort services” on his Union credit card, and alleged misuse of Union funds to bankroll his election campaign for the federal seat of Dobell. This has now blown into a fully fledged scandal which is rocking the foundations of the minority Labor Government.

It is worth noting that the HSU Number 4 Branch is not affiliated to the Australian Labor Party.

The members of the Branch Committee of the Victoria Number 4 Branch, first became aware of these allegations of financial impropriety in in April 2009.They were, and remain, appalled by them, and took steps to have them properly investigated by the regulatory body, Fair Work Australia (then the Australian Industrial Relations Commission/AIRC).

Our branch had received legal advice that the best course of action was to seek an investigation by the AIRC, as it has the power to subpoena documents and individuals.

Further the AIRC, and now FWA, has the power to refer its findings to the DPP

The Act at the time provided that 250 members of a registered union could request the AIRC Industrial Registrar to investigate the finances and the financial administration of their union. If such a request is made the Registrar was required to investigate the finances and the financial affairs of that Union.

Therefore in April 2009 the Committee of Management of the HSU #4 Branch passed the following resolutions:

1. The Branch Committee directs the Secretary to write to the Registrar of the Australian Industrial Relations Commission requesting an investigation into a suspected failure to comply

with Chapter 8 Part 3 of the Registration and Accountability of Organisations Schedule between 2002 and 2007 by the National Organisation of the HSU in that it failed to keep and correctly record and explain the transactions and financial position of the National Organisation between 2002 and 2007.

CARRIED UNANIMOUSLY

2. The Branch Committee will advise members of the Branch of possible financial irregularities in the National Office of the Health Services Union and seek the support of the membership of the Health Services Union in requesting the Registrar of the Australian Industrial Relations Commission to undertake an investigation into the finances and financial administration of the National Organisation between 2002 and 2007.

CARRIED UNANIMOUSLY

3. With respect to the above resolution (2) the Branch Committee directs the Secretary to prepare a pro forma document to be forwarded by email to members of the Branch, which will also be able to be accessed from the member-only pages of the MSAV/VPA/AHP website, seeking members’ support for the request for an investigation by the Registrar, and requiring them to respond in writing or electronically if they wish to provide the requested support.

CARRIED UNANIMOUSLY

Subsequently, we received more than 250 letters from MSAV, VPA and AHP members of the HSU Number 4 Branch asking for an investigation of the financial management of the national office of the Union between 2002 – 2007. These letters were hand delivered to the AIRC Registry in July 2009 together with a formal request from Dr. Kelly for an investigation of the finances of the federal union.

As a result of our resolute action, the Commission initiated an investigation which appears to remain unresolved. It also appears that the federal government is now relying on this investigation to make findings about the allegations of impropriety against the federal member for Dobell. We are concerned that this has been drawn out for such a long period of time but remain committed to ensuring that if financial impropriety has occurred, that the person or persons responsible are brought to account.

FWA has today advised the union that it expects the investigation will be completed in the last quarter of 2011.