Union to aid police in brothel inquiry
Source: Agencies |
August 25, 2011, Thursday
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Print Edition
Print Edition
A POLITICAL scandal that threatens to bring down Australia's fragile government deepened yesterday, with a trade union reporting to police allegations that a lawmaker paid prostitutes with thousands of dollars of union money.
The allegations date back to 2005 and 2007, when Craig Thomson was national secretary of the Health Services Union. They were first raised by a Sydney newspaper in 2009, but police did not investigate then because the union, which is aligned with the governing Labor Party, made no complaint.
Yesterday, the union's executive board voted unanimously to refer the matter to police and cooperate with any investigation of Thomson, who was elected to parliament in 2007. He has denied any wrongdoing.
A conviction for theft or fraud would force Thomson to quit and cost Prime Minister Julia Gillard's year-old government its single-seat majority.
With opinion polls showing the government is deeply unpopular, observers agree the ruling party would have little hope of retaining Thomson's seat in a by-election.
Gillard told parliament yesterday she continued to stand by Thomson. The government voted down an opposition motion calling on him to give parliament an explanation.
Police announced on Tuesday they were investigating the lawmaker on the basis of evidence forwarded by an opposition politician, but prosecutions for crimes such as theft and fraud usually require a complaint from a victim.
Kathy Jackson, who replaced Thomson as the union's national secretary then ordered an audit of accounts compiled during his tenure, said police would be given full access to records.
She said: "Police are investigating this matter and we are not going to cause any impediment to them and will provide every record that we have available."
She said an audit in 2009 "established a basis for suspecting that there may have been misuse or misappropriation of union funds."
Thomson is alleged to have used his union credit card to pay prostitutes at a Sydney brothel thousands of dollars in two transactions in 2005 and 2007.
Thomson has denied the allegations and claims an unnamed man took his credit card and forged his signature. Thomson also said the man had repaid the money.
The allegations date back to 2005 and 2007, when Craig Thomson was national secretary of the Health Services Union. They were first raised by a Sydney newspaper in 2009, but police did not investigate then because the union, which is aligned with the governing Labor Party, made no complaint.
Yesterday, the union's executive board voted unanimously to refer the matter to police and cooperate with any investigation of Thomson, who was elected to parliament in 2007. He has denied any wrongdoing.
A conviction for theft or fraud would force Thomson to quit and cost Prime Minister Julia Gillard's year-old government its single-seat majority.
With opinion polls showing the government is deeply unpopular, observers agree the ruling party would have little hope of retaining Thomson's seat in a by-election.
Gillard told parliament yesterday she continued to stand by Thomson. The government voted down an opposition motion calling on him to give parliament an explanation.
Police announced on Tuesday they were investigating the lawmaker on the basis of evidence forwarded by an opposition politician, but prosecutions for crimes such as theft and fraud usually require a complaint from a victim.
Kathy Jackson, who replaced Thomson as the union's national secretary then ordered an audit of accounts compiled during his tenure, said police would be given full access to records.
She said: "Police are investigating this matter and we are not going to cause any impediment to them and will provide every record that we have available."
She said an audit in 2009 "established a basis for suspecting that there may have been misuse or misappropriation of union funds."
Thomson is alleged to have used his union credit card to pay prostitutes at a Sydney brothel thousands of dollars in two transactions in 2005 and 2007.
Thomson has denied the allegations and claims an unnamed man took his credit card and forged his signature. Thomson also said the man had repaid the money.
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