Federal Labor MP Craig Thomson is threatening the leadership of the Health Services Union with a $1 million claim for damages following allegations of credit card misuse during his years as the union’s national secretary.

The allegations, reported by the Sydney Herald in 2009, claimed that Mr. Thomson’s bad behaviour with the HSU-issued credit card included cash withdrawals of at least $100,000 during the five years he served with the national executive board, as well as funding his campaign for the Dobell electorate and transactions with a brothel and escort services.

The damages suit to be filed by Mr. Thomson against thirteen members of the HSU national executive claims the evidence presented against him, which are alleged to be original banking documents from industry giant Commonwealth, have been falsified, or that the card was used without his knowledge. Since the story first broke, he has denied the allegations with energy, stating they arise from factions within the HSU, or are due to the preselection challenge he faces for his Central Coast seat.

Michael Williamson, the HSU national president who also serves in the same position with the ALP, has not released a comment. It’s not known if he is one of the thirteen respondents to Mr. Thomson’s suit.

The documents in question were submitted to an accounting firm, BDO Kendall, for an investigation, requested by the national executive of the HSU. The firm’s report has not been released, although a copy is believed to have been given to Fair Work Australia, the federal regulator for industrial relations, along with the original documents.

A representative for Fair Work Australia stated they are looking into the incident, although it’s not clear if a formal investigation is warranted.

Source: http://www.smh.com.au