HWU boss Diana Asmar has powers restricted amid allegations of financial impropriety

Health Workers Union boss Diana Asmar has effectively been stood down until a court decides if the union will be placed into administration amid allegations of financial impropriety.

Health Workers Union boss Diana Asmar’s branch secretary powers will be restricted.

Health Workers Union boss Diana Asmar’s branch secretary powers will be restricted until a court decides if the union will be placed into administration.

Federal Court Justice Craig Dowling made the orders on Friday, effectively standing Ms Asmar down, amid serious allegations of financial impropriety, including the misappropriation of $2.7m of union funds.

The national Health Services Union made a push to bar Ms Asmar, who heads the Victorian branch, following allegations by the Fair Work Commission she had falsely claimed more than $120,000 in payments from the union.

Health Workers Union Secretary Diana Asmar. Picture: Peter Ristevski

She also allegedly approved $2.7m in payments to a printing business between 2016 and 2021 for services that were never provided.

HSU National Secretary Lloyd Williams said the court’s decision was a major win for members.

“This significant victory for our members. It is a major step towards refocusing the HWU on making members’ interests its unwavering priority,” he said.

“Serious allegations of misconduct remain before the court and this outcome vindicates our proactive approach in addressing these issues.

“We have zero tolerance for any misuse of members’ funds.”

Justice Dowling had previously restricted Ms Asmar’s powers, preventing her from sacking employees.

Last month she was accused of standing down two Victorian union officials and a five call centre workers following a speech in which she allegedly denounced “traitors” within the organisation.

A case management hearing will take place at the Fair Work Commission on Monday.