Where workers’ fees went: dates, a tattoo and Tiffany

Alleged lavish ‘personal’ spending on National Union of Workers credit cards is ‘disgusting’ says Labor.

Danielle O'Brien, witness to the Royal Commission into Trade Unions in Sydney. Picture Craig Greenhill

Lavish “personal” spending on National Union of Workers credit cards — including visits to dating websites and a tattoo — has been alleged at the trade union royal commission amid claims powerful NSW branch boss Derrick Belan used members’ funds “to pay his bills”.

Union corporate credit cards in Mr Belan’s name were used to buy holidays, jewellery, bed linen, skateboards, sporting events and an assortment of other items worth at least $50,000 between 2009 and 2015, the inquiry heard yesterday.

It was also alleged Mr Belan transferred money to his niece, union book keeper Danielle O’Brien, by making cash payments to her PayPal account from his union credit card.

Ms O’Brien, who tearfully admitted to her own spending of thousands of dollars of union funds on toys, holidays, furniture and other “non-union” items, told the inquiry she used the payments from Mr Belan “mostly to pay his bills”.

Labor frontbencher Chris Bowen today said the spending allegations were “disgusting” if true and should be dealt with through the “full force of the law”.

“If these allegations are true they are disgusting,” Mr Bowen, the opposition’s treasury spokesman, said on ABC radio.

“It is theft and it is the betrayal of hardworking unionists around the country. Hardworking union officials have a right to feel betrayed and let down as do the members if these allegations are true.

“It should be dealt with through the full force of the law.”

But Mr Bowen declined to say if the allegations “justified” the royal commission and instead maintained Labor had concerns about TURC’s processes, including a recent “McCarthyist attempt” to obtain the personal details of 9000 Victorian party members.

The PayPal payments for sums ranging from $2000 to $4000 were made as recently as September and against the background of the inquiry which has been investigating alleged union corruption and breaches of governance for almost two years.

Ms O’Brien, who had been working at the union since she joined as a receptionist aged 18 in 1999, broke down several times throughout her testimony.

Mr Belan’s American Express Corporate Card and Commonwealth Bank Corporate MasterCard, billed to the union branch, were used to buy clothing, bed linen, Lego toys, sunglasses, Easter eggs, makeup, jewellery from Tiffany & Co, perfume and other “obviously personal items” from shopping website catchoftheday.com.au worth almost $40,000, counsel assisting the commission Sarah McNaughton SC said.

Union credit card records also show $12,000 spent on iTunes, $2271.70 in fees for dating websites and payments for a tattoo, Ms McNaughton’s opening statement alleged at the start of a three-day hearing into the NUW’s NSW branch.

“The commission has also identified suspicious transactions on the corporate cards of other current and former branch officials and employees,” Ms McNaughton said.

Mr Belan’s lawyer Maria Gerace told the inquiry Mr Belan was being treated at a psychiatric facility and wanted to be excused from appearing on medical grounds.

But Commissioner Dyson Heydon dismissed the application and ordered the long-time union boss to appear.

As the Commission waited for Mr Belan to arrive, Ms O’Brien testified that she paid for a holiday and a $2740 bill for surgery for Mr Belan, which he asked to be put on the corporate credit card.

“Did you question him when he asked you that?” Ms McNaughton asked Ms O’Brien.

“Of course not … he’s the state secretary and the money is spent at the secretary’s discretion, as far as I’m aware,” said Ms O’Brien.

A union credit card was also used to buy 15 tickets at $1600 to a “Monster Jam” truck tour which Ms O’Brien and Mr Belan attended with their children and other union delegates.

The inquiry also heard about $68,395 in payments from union branch funds to Ms O’Brien’s personal accounts “under the guise of wage payments to union officials and employees” between 2011 and 2015.

Ms O’Brien sobbed as she was confronted with evidence of the payments.

“I don’t remember doing that. I don’t why I did that. I don’t remember doing it. I’m so sorry,” she said.

Ms O’Brien also told the commission she “liked to buy things”.

“I just like to buy things. I can’t help it …. I have a problem,” she said.

Mr Belan abruptly stood down as NSW boss in recent weeks after 14 years in the post after he was summonsed to appear before the Commission.

Ms O’Brien also resigned along with her uncle, NUW organiser Nick Belan, who is Derrick Belan’s brother.

The national office of the NUW, which represents mostly low-paid warehouse, distribution and labour hire workers, has distanced itself from the NSW branch, which has been described by union sources as “isolationist”.

The commission will also hear allegations this week that the NUW’s NSW branch paid former NSW Labor MP Paul Gibson $271,566 for “consultant services” for two years after Mr Gibson left parliament.

The union has been unable to produce any evidence of the work performed, Ms McNaughton told the inquiry.

Mr Gibson was close to the Belans’ late father, Frank, who was NSW secretary of the Storemen and Packers Union and, following amalgamation, the NUW’s NSW branch, from 1983 until his death in October 2001 when Derrick Belan took over.

Mr Belan and the NUW’s NSW Branch signed a deed on October 26 to “release Mr Belan from all claims the Branch may have against Mr Belan”, Ms McNaughton alleged yesterday.

“The Commission will consider the scope and intent of that release and its appropriateness from a governance perspective”.