ALLEGATIONS UNIONS IN $3M PRINT RORT

The Australian Financial Review, and other Nine newspapers, say that the bosses of two high profile trade unions are facing investigation for ordering ghost printing, from three print management businesses.

The AFR says union bosses John Sekta, ex-CFMEU chief, and Diana Asmar from Health Services Union, are “facing a multi-agency investigation into allegations that more than $3m of union money was paid to printing firms for non-existent or ‘ghost’ services.”

The printers in the spotlight are actually print management companies. The investigators include the Victoria Police Fraud Division and Fair Work Commission.

According to the AFR the bulk of the money in question, some $2.8m, was funnelled through the Victorian branch of Health Services, of which Asmar is head, with Sekta alleged to have sent $180,000 from CFMEU in respect of issued invoices.

However the AFR says “the funds were allegedly sent to select printing firms after false invoices were issued.” It says investigators are still working to determine how the funds were later used.

Investigators are currently examining why invoices issued by the printers were paid by the unions on the same day, but without any paperwork detailing any actual print jobs.

According to the AFR, in 2020 Asmar’s branch of the union “spent $484,965 on printing, dwarfing the $17,000 to $20,000 average print spend of its sister union, the Health and Community Services Union which has 11,000 members.”

It says the HWU went on to spend more than $500,000 a year on printing in 2021 and 2022.

If proven true, it would not be the first time that union bosses or people in largely unaccountable roles with sign off on an organisation’s expenses had used printing companies for personal enrichment. Two years ago for example Matthew Hanks, who was the secret owner of a print broking business that he used to steal $1.8m from Surf NSW while he was its general manager, was sentenced to three years three months at His Majesty's Pleasure.