A witness has conceded that blaming union whistleblower Kathy Jackson for rorting more than $200,000 of members' money was only speculation, the royal commission into union corruption has heard.
When Craig McGregor took over as secretary of a Victorian branch of the Health Services Union (HSU) from Ms Jackson in 2012, he became concerned about references in financial statements to three alleged slush funds.
"Money was illegitimately syphoned off," he emailed HSU acting national president Chris Brown in April.
"There have been clumsy attempts to hide the account and the sums deposited into it."
But under cross examination on Tuesday, he conceded he went to the media without further investigating where the funds had gone or questioning those he believed responsible.
The Victorian police fraud squad had also dropped its investigation of Ms Jackson.
Mr McGregor said he expected journalists to verify his claims.
And when pressed under examination, he said blaming Ms Jackson for swindling money was "speculation".
Ms Jackson is due to give evidence on Wednesday.
In late 2003, the HSU decided to keep $250,000 it was given by a health centre that hadn't adequately paid its staff.
The money wasn't returned to the affected members because the branch committee of management decided it would be better spent "advancing the industrial and political purposes of the union," HSU official Katharine Wilkinson told the commission.
"I also recall that Ms Jackson was also authorised to spend for her own personal purposes because she had not been receiving sitting fees (for attending HSU meetings)," she said.
The $222,904 cash withdrawn by Ms Jackson was effectively a reimbursement for her expenses and payment for her attendance at numerous branch meetings.
"The sitting fees were usually around $8000 per meeting and would be paid in cash," self-employed book keeper Jane Holt said.
Ms Jackson says she paid the price for blowing the whistle on corrupt HSU officials, including jailed ex-HSU boss Michael Williamson.
Outside the commission on Tuesday, Ms Jackson said that Mr McGregor, Mr Williamson, opposition leader Bill Shorten and other senior union officials were "part of a gang to bring down the people that brought this to light."
She defended the HSU for keeping the $250,000 from the health centre.
"Members decided where to put that money," she said.
Ms Jackson faces further allegations that she used $1 million of members' money to pay personal credit card debts.
Share
