HSU whistleblower Kathy Jackson says book with details of $250,000 account was in her desk but is now missing

HEALTH Services Union whistleblower Kathy Jackson kept details of a bank account containing over $250,000 of union money in an exercise book in her desk.

Kimberly Kitching leaves the Royal Commission with a privately hired security guard.

HEALTH Services Union whistleblower Kathy Jackson kept details of a bank account containing over $250,000 of union money in an exercise book in her desk.

But today she told the Trades Union Royal Commission that her office had been ransacked and the book was missing.

Asked about numerous transactions up to $50,000 from the account she said that she would be guessing to say what any of the money was used for.

And she said that the HSU was not alone — unaudited “off-line” accounts dealing in large amounts of cash were common across the union movement.

“Other unions such as the AWU, the NUW, the SDA etc also had accounts that were run by the organisation but not audited as such by the branch auditors, they were off-line sort of accounts,” she said.

Counsel assisting the Commission Jeremy Stoljar has said that allegations of corruption have emerged against Ms Jackson including being involved in a slush fund and paying $1 million off two personal credit cards with members’ money.

Ms Jackson has accused Labor leader Bill Shorten, the ALP and union officials of conducting a smear campaign against her after she blew the whistle on corruption that led to the conviction of HSU NSW General Secretary Michael Williamson and Labor MP Craig Thomson.

Counsel assisting the Commission into Trade Union Governance and Corruption Jeremy Stoljar.

Kathy Jackson accused Bill Shorten yesterday of branch stacking. Picture: Kym Smith

Yesterday she confirmed she controlled a slush fund, which she called a “fighting fund” or “war chest”, that was financed from over $250,000 of unpaid members entitlements money paid to the union by the Peter MacCallum Cancer Centre.

Ms Jackson said was given carte blanche to use the money for her union purposes, such as election funding or Christmas parties, and to use $4000 a year for personal use.

But as Mr Stoljar went through the bank records for the National Health Development Account, into which the entitlement money was paid, Ms Jackson struggled to recall what any of the payments were for.

Kathy Jackson blew the whistle on union corruption leading to the conviction of HSU NSW general secretary Michael Williamson.

Kathy Jackson blew the whistle on union corruption that led to the conviction of Labor MP Craig Thomson.

Mr Stoljar pointed to withdrawals of $5000, $8000 and even $50,000 and asked: “Do you remember what they were used for.”

Ms Jackson repeatedly replied: “No” or “They were used for either political or industrial purposes.”

She said she kept a tally of all payments from the account in an exercise book which was lost after her office was ransacked while she was involuntarily sectioned because of the stress of the ALP and union campaign against her.

“If I had my exercise book every transaction would have been recorded faithfully,” said Ms Jackson.

“Some people may find that unpalatable but that’s how business was conducted, not just in my union but in other unions as well.”

Ms Jackson also recalled meeting representatives from tobacco company Phillip Morris.

“I did ask at the time, you know, what are you doing contributing to HSU elections?

“Basically the response was ‘we can’t give it away. It’s very hard to give our money away to political parties these days’,” she said.

UNION OFFICIAL KIMBERLEY KITCHING HIRES BODYGUARD

EMOTIONS were running so high at the Trades Union Royal Commission yesterday that a union official and close friend of Labor leader Bill Shorten claimed she needed to hire a bodyguard to protect her.

Kimberley Kitching leaves the Royal Commission with a privately hired security guard.

Kimberly Kitching with her bodyguard.

Kimberley Kitching, general manager of the HSU No 1 branch in Victoria, called for protection after an ally of whistleblower Kathy Jackson allegedly abused her.

Ms Kitching went to the police after an altercation with former union official Marco Bolano in a cafe near the Commission in Market Street in the middle of the city.

Mr Bolano strongly denied the allegations.

“Kimberley was really shaken up,” said a witness. “Bolano followed her to a cafe.”

Ms Kitching called her office after the alleged incident and a security guard from Advent Security was hired to accompany her to and from the Commission.

Ms Kitching is attending the Commission to help lawyers prepare to cross examine Ms Jackson, who blew the whistle on corruption that led to the conviction of HSU NSW General Secretary Michael Williamson and Labor MP Craig Thomson.

Mr Bolano is a former HSU official and key ally of Ms Jackson, who helped him fund his failed 2009 union election campaign with an envelope of union slush fund cash.

He denied abusing Ms Kitching but confirmed taking photographs of her talking to a journalist in a cafe and putting his arm around a union blogger during a media scrum and telling him to leave Ms Jackson alone.

Members of Ms Jackson’s camp have become increasingly agitated at the Commission after she accused Mr Shorten of branch stacking and being involved in an ALP and union smear campaign against her.

Ms Jackson’s husband Michael Lawler, deputy president of the Fair Work Commission, said: “I am so concerned about my beloved who has been smeared beyond belief.”