Health Workers Union thrown into administration amid Asmar probe

The embattled Victorian Health Workers Union has been placed into temporary administration in the ongoing legal fight involving alleged rorting of union funds.

Loyalists to secretary Diana Asmar have now been barred from running the branch, after she was prevented on December 13 from carrying out her role.

Health Workers Union boss Diana Asmar.Credit: Justin McManus

The Federal Court on Monday appointed former National Union of Workers general secretary Charlie Donnelly as interim administrator.

The union’s national executive has been fighting since September to put the HWU, which represents about 16,000 mostly low-paid health sector workers, into administration. The national executive argues the HWU no longer functions effectively.

“This outcome is a big win for HWU members and justifies the resolve of our union in seeking interim administration,” Health Services Union national secretary Lloyd Williams said in a statement.

The HWU is one Victorian branch within the national HSU, which is not subject to the allegations.

The HSU has been seeking to have the HWU put into administration since September, when the Fair Work Commission launched civil proceedings against Diana Asmar and her husband, David Asmar.

They have been accused by the commission of stitching up a multimillion-dollar “ghost printing” arrangement.

Its investigation into the Asmars – revealed by this masthead – alleges a printing business received $2.7 million in HWU member funds for no service, with the money instead going into private accounts, and that more than $120,000 in reimbursements was claimed without evidence of relevant business expenses.

Justice Craig Dowling first made orders on October 7 limiting Asmar’s powers, including preventing her dismissing any employees or altering their employment.

Asmar gave an undertaking to the court she would follow the judge’s orders. She was called back to court early this month amid concerns she had been meting out punishment to “traitors”.

On December 13, Dowling restricted Asmar’s duties, preventing her from carrying out her role until the court decided whether to make the administration order.

The Health Services Union’s application is due to return to the Federal Court in April for an eight-day hearing.

The Fair Work Commission has launched a separate civil proceeding against Asmar, David Asmar, and five senior members of the HWU executive team over the printing cashback allegations.

With AAP

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