(Transcript from World News Radio)
As the Abbott government prepares for its Royal Commission into union corruption, the movement has been dealt another blow.
Former Labor MP Craig Thomson has been found guilty of misusing work credit cards on personal expenses, including prostitutes, during his time as Health Services Union secretary.
Thea Cowie reports.
Almost five years after concerns were first raised, a Melbourne magistrate has found Thomson guilty of most of the 140 charges levelled against him.
The court has found the former Labor MP guilty of obtaining financial advantage by deception and theft during his time as Health Services Union boss between 2002 and 2007.
The Magistrate ruled it was illegal for the 49-year-old to use his work credit cards to rack up at least $6000 worth of escort and prostitute services.
Magistrate Charlie Rozencwajg told the court, while there was some difficulty in defining what constituted business use, it would be an "affront" to think union funds could be used for sexual services.
The 49-year-old was also convicted of dishonestly making a series of cash withdrawals totalling $10,000, of using union credit cards to pay for cigarettes, and for expenses after resigning from the union to become a Labor MP.
Charges which were dismissed included some allegations relating to the travel expenses of Thomson's then-wife Christa.
All counts of using union credit cards to pay for pornographic movies were dismissed, with the magistrate saying that didn't meet the standard required to prove the charge of obtaining financial advantage by deception.
In court, Thomson's lawyers argued the former union boss was allowed to authorise expenditure of up to $50,000 without approval from the union's national executive.
Several union witnesses told the court they believed there were no concrete written rules on what union funds could be spent on.
Over the past five years, Thomson has maintained his innocence; speaking here in 2012 after the announcement of a police investigation.
"I am very confident that at the end of this investigation that I will be vindicated in terms of the position I have taken form the start. I don't expect to be charged in relation to this matter. I expect that at the end of the day the position I have taken, where I spoke for over an hour in Parliament which I have said for the last four years that I have done no wrong doing will be vindicated."
For three years Labor stood by Thomson - the House of Representatives member for the New South Wales seat of Dobell.
In 2011, then Prime Minister Julia Gillard repeated her support.
"I have complete confidence in the Member for Dobell. Of course there's an obligation on all Members of the Parliament to abide by the rules in relation to declarations of interest."
But in April 2012, Ms Gillard asked Thomson to quit the Labor Party.
Then Opposition leader Tony Abbott asked why Thomson had been supported so long.
"The Prime Minister's judgment is in question. Because for months, indeed years, she kept saying she had full confidence in Craig Thomson. She now needs to explain how she could say that given what is coming out now into the public arena."
Last week, Mr Abbott announced a Royal Commission into union governance and corruption to be headed by a former High Court judge.
It comes after an election pledge to launch an inquiry into the union movement, following allegations of corruption and links to criminal gangs.
Some of the charges Thomson has been found guilty of face a maximum prison sentence of five years.
He will appear before a plea hearing on the 18th of March.
