Health Services Union whistleblower Kathy Jackson had access to $250,000 of members’ entitlement money

HSU whistleblower Kathy Jackson was given access to a union bank account holding over $250,000 worth of members’ entitlement money, the Royal Commission into Trade Unions has heard.

HEALTH Services Union whistleblower Kathy Jackson was given access to a union bank account holding over $250,000 worth of members’ entitlement money for her own personal and union use, the Royal Commission into Trade Unions heard today.

Union officials today gave evidence that Ms Jackson had three union credit cards and authority over when payments were made from the union branch accFpaidounts.

Ms Jackson’s allegations of corruption helped put HSU NSW General Secretary Michael Williamson behind bars and expose Labor MP Craig Thomson’s misuse of union funds to pay for porn and prostitutes.

But Counsel assisting the Commission, Jeremy Stoljar, has said new allegations had come out in recent weeks that Ms Jackson had misused union funds including paying $1 million off two personal credit cards between 2000 and 2011 with members’ money and had involvement in a slush fund.

Today the Commission heard the union had put more than $250,000 in payments of overdue workers entitlements from the Peter MacCallum Cancer Centre into a slush fund controlled by Ms Jackson.

Ex HSU Union worker Katherine Wilkinson arriving at the commission this morning. Picture: Ross Schultz

Records show Ms Jackson personally authorised $284,500 to be transferred into the National Development Health Account.

HSU No 3 Branch Committee Member Katherine Wilkinson told the Commission that Ms Jackson would tell the committee when she needed to use the money held in the National Development Health Account.

“She would indicate to us a particular thing that may have required a certain amount of money and would suggest that we use the Peter Mac money to cover that and it was always accepted.

“I also recall that Ms Jackson was also authorised to spend for her personal purposes because she had not received sitting fees,” she said.

The 14 members of the Branch Committee of Management each received a $100 payment for attending the monthly meetings. Ms Wilkinson said the balance of the cash drawn out to pay the sitting fees was retained by Ms Jackson.

Jane Holt, the bookkeeper for the No 3 Branch of the union, said the sitting fees for each meeting were usually $8000. The Commission did not explore whether Ms Jackson kept the $6600 cash difference.

Kathy Jackson (sitting) and Katherine Wilkinson (standing) outside commission this morning. Picture: Ross Schultz

Accounts also showed she received a $48,000 “honorarium” for attending branch meetings over three years.

Ms Holt said Ms Jackson had three union credit cards and was “a bit inclined to give me a shoebox of receipts” to reconcile the card statements.

The cards were mostly used for travel, accommodation, meals, phone and petrol charges.

“If I did not know what the expenses were for I would ask her to clarify,” said Ms Holt.

Asked who gave the green light for payments from the branch accounts she said: “Kathy was the authority for the payments.”

She said Ms Jackson would speak to her in person about one-off payments. “I did not keep notes of Ms Jackson’s verbal instructions,” she said.

In the past Ms Jackson has denied allegations that she used her union credit cards to pay for personal items including shoes, make-up, bottles of French champagne, a ski trip and a deluxe room at the Bellagio hotel in Las Vegas.

The hearing continues.