Trade unions royal commission: ‘suspicious’ transactions probed

Luxury gifts and a tattoo among $50k in ‘suspicious transactions’ on a former union boss’s credit card, inquiry told.

Transactions on the corporate credit card of former National Union of Workers boss Derrick Belan are being probed.

A powerful and enigmatic union leader faces allegations of possible credit card misuse and use of members’ money to fund lavish “personal” purchases of clothes, jewellery, and entertainment.

Again.

In an echo of the revelations around former Health Services Union leader Kathy Jackson, the trade union royal commission today heard damaging claims of fraud, this time concerning National Union of Workers NSW state secretary Darack “Derrick” Belan.

“Investigations by the commission have identified a large number of suspicious transactions on branch credit card statements,” counsel assisting the commission Sarah McNaughton SC said in her opening statement at the start of three days of hearings into the union.

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, Ms McNaughton said.

Mr Belan’s union credit card also records $12,000 in payments from ITunes, $2271.70 in fees for dating websites and payments for entertainment, holidays, accommodation, and a tattoo.

The purchases were made between 2009 and 2015.

“A significant issue for investigation is whether Mr Belan or others (with or without his knowledge of permission) obtained the benefit of the purchases on his corporate card,” Ms McNaughton said.

Mr Belan, who abruptly stood down as NSW boss last week after 14 years in the post, asked to be excused from giving testimony to the Commission today on the grounds he had been admitted to a Sydney psychiatric facility.

However, Commissioner Dyson Heydon rejected Mr Belan’s application to and compelled him to appear.

The inquiry also heard $68,395 in payments from union branch funds to personal accounts owned by Mr Belan’s niece and branch bookkeeper Danielle O’Brien, were made “under the guise of wage payments to union officials and employees” in the past four years.

“Ms O’Brien’s access to and possibly use of the Branch’s corporate cards as accounts manager will be part of the investigation,” Ms McNaughton said.

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

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

In further allegations aired at the commission this morning, the inquiry heard NUW NSW branch paid former NSW Labor MP Paul Gibson $271,566 for “consultant services”.

The payments were made in the two years after Gibson left Parliament with the union unable to produce any evidence of the work performed, Ms McNaughton said.

Mr Gibson, who had a close relationship with Mr Belan’s late father and predecessor as NUW NSW Branch secretary, Frank, left Parliament in 2011.

Action Workforce, a subsidiary of troubled public labor and training company Ashley Services Group, has also come under investigation with executives including company founder Ross Shrimpton called to give evidence about favours done for Mr Belan.

“The Commission is investigating whether there has been any conduct which may constitute the giving of any corrupt commission or reward to Mr Belan”.

On October 26, the Branch and Mr Belan signed a Deed to “release Mr Belan from all claims the Branch may have against Mr Belan”, Ms McNaughton said.

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

Mr Belan was summonsed to appear before the Commission on October 16, and resigned from the union the following week.

The late Mr Frank Belan 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.