The controversies stem from several allegations that a major supplier gave the secret commissions to HSU head Michael Williamson. He is also involved in a ”factional warfare” with Kathy Jackson. Jackson is also a union member and the whistleblower of the case. 

The NSW police are already involved with the investigation. Ian Temby heads the formal inquiry and said work is being delayed because of cancellations of union council meetings. 

Temby has sent a letter to Health Services Union lawyers, which indicated that the union council should be informed of the deficiencies in the union’s procurement process. The letter also said that remedial action should begin immediately and “not months down the track.” 

Peter Mylan, the union’s acting head, said that the council meeting might have been cancelled in response to the Federal court proceedings that Jackson has initiated, which also calls for the resignation of Williamson. 

Williamson denies the allegations against him. He was head of HSU for the last 17 years. 

It was The Herald that first came out with the story. The expose said Williamson is part owner of United Edge, that IT firm that the union consults with. His wife’s company also provides secretarial services to HSU while his personal architect is on retainer basis for the union.

According to Attorney General Nicola Roxon, this is an option the government can pursue to take the heat off the political debate that has raised and put the credibility of HSU in question.

The Attorney General, however, said no move has been made at this point as all allegations are still considered as hearsay. Roxon said no one has come forward and provided concrete evidence citing the misdeeds in details.

The former MP allegedly made use of union credit cards for personal gain. These include partaking in lavish meals or regularly getting cash withdrawals. He was also said to have been using this to pay for prostitutes.

Craig Thomson was head of the HSU between 2002 through 2007.

Human Rights lawyer Geoffrey Robertson, who said that offences like these in the British parliament would have already been given proper action, spearheaded his suspension. Mr. Robertson, who is a dual-citizen, further said that suspending Thomson while matters are still being looked into, prevents tarnishing the institution’s credibility and effectiveness.

The Attorney General, however, states that the suspension of MPs in their party pending investigations has no bearing or precedence in Australia. Former officials during the time Thomson served also weren’t being under federal investigation, even as corruption within the HSU is subject to police scrutiny and internal investigation in NSW and Victoria.

Reports said that the body was ready to give Williamson the boot but he decided to resign instead. Williamson’s resignation, however, doesn’t include his position as national president of Health Services Union and general secretary of HSUeast branch. 

The Unions NSW has accepted the resignation, which extended to Williamson losing his place on the superannuation fund First State Super board. 

The Unions NSW also suspended HSU from its roster. It also warned HSU that it will remain suspended if it doesn’t make changes to its financial and governance arrangements. 

The suspension reflects the decision of Australian Council of Trade Unions (ACTU) when it suspended HSU last week. 

Williamson has figured in a series of scandals on financial mismanagement and bad workplace practices. He, however, insisted that he is innocent and vows to fight those who are pushing to disgrace him. 

In another twist of Williamson’s continuing battles, documents have surfaced showing union official and former Labour government minister Peter O’ Toole’s warning to John Robertson about Williamson. O’Toole strongly encouraged Robertson to prevent Williamson from becoming the national president of ALP. 

This, however, did not materialize and Robertson has come under fire for not implementing the request. Deputy Premier Andrew Stoner said Roberston did not exercise good judgment on the issue and must have turned a blind eye despite serious allegations against Williamson. 

Prime Minister Julia Gillard has remained mum about the issue, saying only that the correct process must be observed.

HSU has figured in several controversies involving workplace breaches and financial mismanagement. The body is also facing investigation from Fair Work Australia and police probes in Victoria and NSW.

ACTU President Ged Kearney said the decision sends a strong message to HSU officials to come up with better governance procedures. Kearney added that the decision also aims to protect union members, adding that the body has zero tolerance on members getting involved in corruption issues. 

The suspension of HSU meant that it will not be represented in the executive and ACTU Congress in May this year. 

Although the decision to suspend HSU is not unanimous, ACTU secretary Jeff Lawrence said the body voted “overwhelmingly.” Unions Tasmania, HSU and small unions grouping were the ones who voted against the suspension of HSI. 

Lawrence said that the suspension does not make any suggestion of guilt. The body also recognizes HSU’s efforts to address the issues. 

He stressed that the decision is not merely a publicity stunt but a strong message to their ranks to remain faithful to their duties. 

HSU represents more than 60,000 health workers in Australia. Its membership includes community and hospital health workers. The Australian Council of Trade is the governing body that represents workers in Australia. 

ACTU said it will continue to monitor the developments of the situation. The body also said that it is open to discussing the future of HSU if the need arises.