Union boss and husband accused of pocketing cash in $2.7m ghost printing scheme

The Fair Work Commission has launched legal action against Health Workers Union boss Diana Asmar, alleging she approved payment of more than $2.7 million to a printing business and got cash back.

The commission filed civil proceedings against Asmar, her husband, David Asmar, and five senior members of the HWU executive team in the Federal Court on Friday.

Health Workers Union Victorian secretary Diana Asmar.Credit: Justin McManus

It is alleged Diana Asmar failed to act in accordance with the minimum standards of behaviour required of an officer of a registered organisation as secretary of the Health Workers Union.

As well as allegations that Diana Asmar got $120,000 in purported financial reimbursements despite no evidence of any relevant business expenses, the commission also alleged she personally authorised $2.7 million to be paid to a printing business for services that were never provided.

“[Asmar] personally received the benefit of cashback transactions relating to the printing conduct, including through the conduct of her spouse, David Asmar, who it is alleged was involved in arranging for the relevant payments to be made and received,” the commission said in a statement.

The commission wants the court to find the Asmars contravened the Fair Work (Registered Organisations) Act 2009, and that her conduct was enabled by other senior officers of the HWU. The HWU is the Victorian branch of the national Health Services Union, which the commission said was not involved in the alleged offending.

Diana Asmar has been contacted for comment. Privately, she has vigorously denied the claims regarding ghost printing. She is yet to provide an explanation to the union’s national office

The legal action comes after Asmar refused to stand down from the union after reports in The Age and The Australian Financial Review of an investigation into her branch allegedly spending $2.7 million on ghost printing services and Asmar claiming $100,000-plus in questionable reimbursements.

The commission cited HWU branch finance manager Kerry Georgiev, branch committee of management member Nick Katsis, branch assistant secretary David Eden, branch senior vice president Lee Atkinson, and branch president Rhonda Barclay as the other respondents of the legal action. They are accused of failing to comply with financial policies and procedures governing payments.

The Fair Work Commission said it would ask the court to make the Asmars compensate the HWU, and ban them from holding office in a registered organisation for five years. It also wants all seven respondents to pay penalties.

The commission also alleges that HWU finance manager Georgiev accessed the accounts of the other senior officers and used their unique banking token codes to process the payments from the branch’s bank accounts.

“The alleged conduct, which occurred between 2016 and 2021, significantly impacted the branch’s finances and the ability of the branch to serve the best interests of its members,” the commission said in a statement.

Health Services Union national secretary Lloyd Williams said the national executive wanted Asmar stood down immediately, and called on the HWU branch to deal with it urgently.

“The broader Health Services Union is horrified by [the allegations] that have been laid by the Fair Work Commission against Diana Asmar and six other individuals from the Health Workers Union,” Williams said.

“Our union has no tolerance for misuse of members’ funds, and it’s important to specify that this is isolated to the Victoria Health Workers Union branch. The union’s national executive has consistently sought to stand Diana Asmar aside while this investigation has been under way.”

Williams said the HSU’s legal representatives would spend the next few days examining the best way to restore integrity to the branch.

On Friday, The Age and the AFR reported a senior official at the Health Workers Union called for the organisation to stand Asmar down, claiming the branch was dysfunctional, that memberships may be inflated, staff have been underpaid and scores of pay deals have not been finalised.

Get the day’s breaking news, entertainment ideas and a long read to enjoy. Sign up to receive our Evening Edition newsletter here.