Union at centre of IBAC probe being investigated for funnelling money into training organisation

1 week ago 9

The Victorian Health Workers Union is being investigated implicit allegations it secretly funnelled national wealth into a grooming organisation that an anti-corruption committee antecedently recovered was an abject failure, and paying its caput Diana Asmar for non-union-related enactment astatine the organisation.

The Fair Work Commission has been scrutinising the finances of the Health Workers Union (HWU), the behaviour of Asmar who has been accused of misusing her presumption astatine the national to summation fiscal advantage, and the union’s longtime accountant Stannards.

The Health Workers Union and its caput Diana Asmar are being investigated by the Fair Work Commission.

At the bosom of the Fair Work Commission probe is the arguable Health Education Federation – a grooming organisation with Asmar arsenic 1 of its directors – which the Victorian Independent Broad-based Anti-corruption Commission past twelvemonth recovered had been improperly awarded a $1.2 cardinal declaration by the Department of Health connected the eve of the 2018 authorities predetermination aft unit from ministerial staff, past Premier Daniel Andrews’ bureau and Asmar.

IBAC was incapable to scrutinise the union’s finances due to the fact that it fell extracurricular the anti-corruption commission’s jurisdiction.

However, this masthead tin uncover that the Fair Work Commission has been investigating the HWU amid questions astir the accuracy of its fiscal reports, including the union’s medication of funds done Asmar to the Health Education Federation and the grooming programme to bid infirmary unit to woody with unit against wellness workers.

Payments the national made to Asmar for her relation astatine the Health Education Federation, arsenic good arsenic its payments to 2 printing companies – Total Print Management and Tintern Heights, some owned by Peter Walsh – are besides being examined, according to well-placed sources alert of the probe but incapable to remark publicly.

The Fair Work Commission is besides scrutinising Stannards and whether the firm, oregon its manager Michael Shulman who was 1 of the directors of the Health Education Federation erstwhile it was established, appointed an auditor for the union’s finances betwixt June 2017 and June 2021 erstwhile they whitethorn person been considered an “excluded auditor” nether the law.

The accounting steadfast whitethorn besides person contravened the Fair Work (Registered Organisation) Act erstwhile it made a connection successful the union’s yearly fiscal study the auditor knew, oregon suspected, was mendacious oregon misleading.

The commission’s wide manager Murray Furlong said the probe arose from a scope of sources alleging misconduct astir the fiscal affairs of the HWU. It centres astir the union’s records and accounts, and whether the HWU oregon anyone taxable to the enactment whitethorn person contravened a proviso relating to the branch’s accounts and audits, oregon a civilian punishment provision.

“This probe is progressing and I americium committed to allocating the resources required to guarantee it is completed with rigour arsenic soon arsenic practicable,” Furlong said. In a statement, a HWU spokesperson said it was not due to supply a moving commentary connected the commission’s activities.

“We person cooperated with the [Fair Work Commission] afloat and proceed to follow due governance procedures for each national activities,” helium said. “We besides enactment that IBAC’s findings astir the national vindicated our pugnacious and persistent advocacy for each HWU members. We marque nary apology for warring the bully combat for each members successful the health, disablement and aged attraction sectors.”

Stannards denied Shulman’s presumption arsenic the autarkic auditor of the national was being investigated.

“The Fair Work Commission requested confirmation that Michael was the autarkic auditor of HWU implicit their reappraisal period,” managing manager Peter Angelini said. Walsh was contacted for comment.

The Health Education Federation was registered with the firm regulator successful 2017 by Shulman’s accounting firm, Stannards Accountants and Advisors, but its quality to connection a grooming programme was ever successful doubt.

Union sources person claimed it was established to replicate the occurrence of the grooming organisations tally by the plumbers and electrical trades union, but astatine the clip it was awarded a declaration the Health Education Federation had nary experience, did not person a registered grooming organisation presumption and its governance practices were questionable.

Premier Daniel Andrews, past wellness curate Jill Hennessy (centre) and national person Diana Asmar (right) announcing the $2.2 cardinal predetermination committedness for the Health Education Federation successful 2018.

IBAC heard grounds the Department of Health had raised concerns astir the prime of the programme astir instantly aft it was being rolled out. The Health Education Federation received $335,000 of the $1.2 cardinal it had been promised (but a time earlier the caretaker play it managed to person the section alteration the presumption of the declaration to let for an upfront outgo of $121,500) and trained 80 healthcare workers earlier the COVID-19 pandemic closed the program.

Although the Health Education Federation’s 2 directors were national officials, 1 of them being Asmar, and seemingly inextricably linked to the HWU, it was ne'er formally portion of the national – truthful determination was nary ownership operation to guarantee the national benefited from the grooming provider.

The Fair Work Commission probe arose retired of concerns employees and officers of the HWU, including Asmar, improperly utilized their presumption to summation an vantage for themselves oregon origin detriment to the union.

The probe dates backmost to the union’s affairs successful July 2016 – the play six months aft the Royal Commission into Trade Union Governance and Corruption, which pilloried the HWU, past known arsenic the Health Services Union Victorian No. 1 Branch.

It heard grounds Asmar’s husband, David Asmar, owed Total Print Management much than $130,000 for printing services incurred during her predetermination run to the national successful 2012.

Peter Walsh is the manager of Total Print Management and Tintern Heights, which are being investigated by the Fair Work Commission, and was registered by Stannards, according to institution documents filed with the firm regulator.

Diana Asmar told the royal committee she was not alert of the backing oregon organisation of her predetermination campaign, including wealth owed to Total Print Management – a assertion the royal committee questioned but was incapable to marque findings connected due to the fact that David Asmar near Australia a fewer days aft being told helium would person to look arsenic a witnesser earlier the inquiry.

“During the campaign, David Asmar arranged for $139,865.00 to beryllium spent connected printing and mailing services provided by Total Print Management Pty Ltd,” the commission’s interim study stated.

“He said that it represented the ‘vast bulk of the expenditure incurred during the predetermination campaign’. The magnitude was ne'er paid and is inactive outstanding. According to a colony statement concluded betwixt Total Print Management Pty Ltd connected 20 June 2013, outgo of $120,000 is owed to the institution from Mr Asmar by 31 December 2014.”

Between July 2016 and June 2021, the play nether investigation, the HWU spent $1.7 cardinal connected printing and stationery costs, according to its yearly fiscal reports. In the past 2 fiscal years, that fig was a further $741,000. It is unclear from the institution filings however overmuch of that was spent connected printing and to which companies.

Since the royal commission, the HWU has spent much than $1.5 cardinal successful ineligible costs, with this fig peaking successful the 2022 fiscal twelvemonth astatine $500,000. It spent $280,000 successful ineligible fees successful the past fiscal year, according to their yearly fiscal statement.

In the 2021 fiscal year, the national recorded a nonaccomplishment of $124,000, followed by a $785,000 nonaccomplishment the twelvemonth after, and $7000 nett successful the past fiscal year.

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