Suspended Health Workers Union boss fights to pause Federal Court legal action launched by Fair Work Commission

Health Workers Union boss Diana Asmar could be hit with “serious” criminal charges over allegations of financial impropriety, her lawyer claims, as she fights to halt legal action against her.

Suspended Health Workers Union state secretary Diana Asmar may be hit with ‘serious’ criminal charges, her lawyer says. Picture: Peter Ristevski

Suspended union boss Diana Asmar could be hit with “serious” criminal charges over allegations of financial impropriety involving $2.7m of members’ money, her lawyer says.

The Fair Work Commission has launched legal action in the Federal Court against Ms Asmar, who was stood down from the national executive of the Health Services Union in August, alleging she approved $2.7m in payments to a printing business between 2016 and 2021 for services that were never provided.

But on Friday, Ms Asmar’s lawyer, Rishi Nathwani KC, argued the proceedings should be “stayed” – or paused – given criminal proceedings are “on the cards”.

The FWC filed the action against Ms Asmar, her husband and five others in the Federal Court in August, seeking the Asmars compensate the HWU for the missing funds and pay penalties.

It is alleged Ms Asmar received “the benefit of cashback transactions” worth thousands of dollars under the “ghost printing” arrangement, with the FWC to argue she failed to act in accordance with the minimum standards of behaviour required of a union officer.

Ms Asmar is the state secretary of the Health Workers Union, which is the Victorian branch of the HSU.

Ms Asmar is alleged to have approved $2.7m in payments to a printing business between 2016 and 2021 for services that were never provided.

Mr Nathwani told the court that Victoria Police had arrested a 74-year-old Mount Eliza man, the director of the printing business, earlier this month as it probed the allegations.

“When one looks at what’s alleged and how the money is transferred to (the printing business), Diana Asmar is all over it, according to the allegations made by the statement of claim,” he said.

“And so it must follow, if (the director of the printing business) is charged, (Ms Asmar) would be charged, because it’s not suggested (the director) has kept all the money.”

The director was released by the police pending further inquiries.

It is understood Ms Asmar denies the claims.

Mr Nathwani said his client could either defend the Federal Court proceedings by participating and “abrogating her right to silence” or be prejudiced by not putting on a proper defence.

“The police can sit back and watch it all unravel and use the evidence as they wish, if she were to participate, thereby completely abrogating her right to silence,” he said.

He added: “The reality is … she has looming over her the prospect of very serious criminal proceedings.

“If anyone is convicted of this type of fraud, they will receive a prison sentence. She has that hanging over her head.”

The Fair Work Commission has launched legal action in the Federal Court against Ms Asmar. Picture: David Crosling

Matthew Follett KC, for the FWC, said Mr Nathwani was relying on “nothing other than suspicion” when talking about criminal proceedings against Ms Asmar.

“He’s asking you to accept the premise … that (the director and Ms Asmar) are in exactly the same basket, but they’re not being treated by the police as in the same basket,” he told Justice Craig Dowling.

The court heard that Victoria Police had confirmed in September that Ms Asmar was, at that point in time, not under investigation.

Justice Dowling noted a criticism of the stay was that it would operate “until such time that Victoria Police notify there are to be no changes”.

However, Mr Follett argued if a stay was to be granted, “short, periodic stays” would be favoured over “open-ended or lengthy stays”.

Last month, the HSU obtained an injunction preventing Ms Asmar and her fellow HWU officials from using union resources to fund their legal defence.

Justice Dowling will hand down his decision at a later date.