Cafe meetings ‘behind alleged multimillion-dollar ghost-printing scheme’

Health Workers Union boss Diana Asmar and her husband allegedly stitched up a multimillion-dollar “ghost printing” arrangement during meetings at a string of cafes around suburban Melbourne.

The allegation comes as the embattled union has been given an ultimatum from its national office to stand down senior officials facing civil proceedings in the Federal Court, stop payment of legal fees and appoint an administrator.

Health Workers Union boss Diana Asmar has privately denied allegations against her.Credit: Justin McManus

In August, the Fair Work Commission launched civil action against Asmar, alleging she received more than $120,000 in purported financial reimbursements despite no evidence they were relevant business expenses. She was also alleged to have authorised $2.7 million in “cashback transactions” to a printing service for services never provided.

The HWU is a Victorian branch of the national Health Services Union, which has had no allegations against it.

Last week, the federal office sent a letter to the state branch demanding it stand down those named by the commission from the senior leadership team pending the outcome of the case and rescind a motion that would have allowed the use of union funds to pay Asmar’s legal fees.

That letter, seen by The Age, urged the union’s leadership team to act on the demands by September 3, or the federal office would launch court proceedings to appoint an independent administrator itself.

It also took aim at the senior branch committee of management’s [BCOM] response to the allegations against the union, describing them as “inappropriately and woefully inadequate” given court proceedings had been launched.

“That the BCOM would see fit to fund the branch secretary’s legal expenses to defend the [allegations] laid against her on 13 August, 2024, is particularly concerning,” the letter reads.

“It is alleged that she misappropriated union funds. It is incongruous that the BCOM would see fit to do this without condition at the same time as deciding to commence its own investigation into the same allegations.”

The Health Workers Union and its secretary, Diana Asmar, are being investigated by the Fair Work Commission.Credit: Luis Enrique Asqui

The Fair Work 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.

Included in the HSU’s letter to the Victorian branch are court documents, seen by this masthead, which detail how more than $120,0000 in reimbursements were alleged to have been illegitimately claimed and $2.7 million in union money was allegedly paid for services not provided.

They accuse Asmar and her husband, David, of involvement in a $2.7 million cashback scheme between 2016 and 2021.

The commission traced 170 transactions – ranging from $8000 to as high as $55,000 – over this period in which HWU funds were paid to a printing company named Southern Publishing.

After the transactions were made, it said, bank records showed money would be withdrawn from the company’s account. Later, “unexplained” deposits worth thousands of dollars were allegedly made into joint or individual Asmar accounts.

The commission’s documents allege the pair would be in contact with the director of Southern Publishing in the days before and after these payments.

They claim David Asmar and the printing director would frequently meet at cafes in Tullamarine, Northcote and Mount Eliza, with records showing them both making purchases at these locations.

Diana Asmar was not present at these meetings but was allegedly involved with them over the phone.

The commission documents provide examples where it is alleged, following these meetings, HWU payments would later be made to Southern Publishing or cash would be deposited into one of the Asmars’ single or joint bank accounts.

The union’s office in Melbourne.Credit: Elke Meitzel

It is alleged that the Asmars ultimately received more than $1.2 million in cash back from the business “in circumstances where she [Diana Asmar] knew that the money had been paid to Southern Publishing from the HSU as fees for no service”.

The commission alleges Diana Asmar improperly used her position as state secretary to the detriment of the union and its members. It claims she knew no work would be provided for the payments she authorised.

The documents also detail transfers of money dating back to 2017 that “were not for the legitimate reimbursement of business expenses incurred by Ms Asmar”.

Some of these payments, including hundreds of dollars spent at Officeworks and Village Cinemas, were allegedly made years before the transactions they had been claimed against.

The commission also alleges that other reimbursements paid to Asmar were justified using transactions that she was not involved in. These included a trip to a Pancake Parlour outlet and thousands of dollars in meals at cafes and restaurants in Melbourne’s north and the Mornington Peninsula.

Details of the investigation were first revealed in The Age and The Australian Financial Review.

Before the commission’s allegations, a senior HWU official sent a letter to the branch committee of management calling for Asmar to stand down pending further investigation. The letter claimed the branch was dysfunctional, that memberships may be inflated, staff have been underpaid and scores of pay deals have not been finalised.

“Every day that Asmar continues to refuse to step down causes further reputational damage to the HWU,” the official wrote.

Asmar has in private vigorously denied the claims regarding ghost printing. She is yet to respond publicly and did not respond when contacted for comment.

She has so far refused to stand down despite calls internally and from the national office.

The Fair Work 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 in the legal action. They are accused of failing to comply with financial policies and procedures governing payments.

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