Union boss suspended from national executive, urged to stand down from all roles

Victorian Health Workers Union secretary Diana Asmar has been stripped of her national duties pending an investigation into alleged misuse of members’ funds.

The Health Services Union’s national executive on Tuesday afternoon unanimously voted to suspend Asmar from her role as national senior vice president until investigations into the state branch she leads were complete.

The HSU national leadership also urged the state branch committee of management to stand Asmar aside, appoint an administrator to the HWU and consent to a comprehensive audit.

This masthead revealed last week that the Fair Work Commission and Victoria Police were part of a multi-agency investigation examining allegations that more than $3 million in union funding was paid to printing firms for non-existent or “ghost” services.

After these reports, the HSU national executive said it had asked Asmar to stand aside from all union positions last Wednesday, but she had not.

In a statement after its Tuesday meeting, the national HSU executive said it expected to explain its position to the Victorian committee and urge it to act.

National secretary Lloyd Williams said the executive was deeply concerned about allegations of impropriety.

“We take these matters extremely seriously and are waiting for the Fair Work Commission to promptly conclude its investigation and present its evidentiary findings,” he said.

“The HSU has no tolerance for alleged misuse of union funds. Our decisions are informed by the need to protect the interests of our members, which is why we have stood Diana Asmar aside from her national executive position and intend to persuade the Victoria No.1 branch committee of management to follow a similar course.”

Asmar, who has previously told the HSU she strenuously denies the claims, has been contacted for comment.

Documents seen by this masthead have previously confirmed Victoria Police and the Fair Work Commission are investigating alleged misuse of union funds.

The money was allegedly sent to select printing firms after false invoices were issued, with investigators still working to determine how the funds were later used.

The Asmar-controlled Victorian branch allegedly funnelled through the scheme almost $2.8 million in union dues paid by some of the nation’s lowest-paid healthcare workers. It is also alleged the CFMEU separately sent $180,000 in members’ fees via the scheme.

Victoria Police and the Fair Work Commission are probing whether a firm called Southern Publishing was used by the HWU to corruptly divert money for personal enrichment, including political gain.

Investigators are examining why Southern Publishing – one of three aligned printing companies that received funds from the HWU and CFMEU – issued multiple invoices to Asmar’s union branch that were paid for on the same day but in the alleged absence of any documents showing the company had performed any work.

When contacted by this masthead, the director of the print firms said he was advised by his lawyers not to comment.

Asmar also allegedly used union funds to pay for personal expenses and attempted to cover up her conduct by doctoring receipts.

“About $124,000 in payments to Ms Asmar are wholly unsupported by any documentation able to be produced by the branch,” a Fair Work Commission document alleges.

One case study documented involves Asmar’s apparent purchase of Gold Class movie tickets at Crown casino, an expense investigators have queried may not “relate to a proper business expenditure” of a union.

The HWU, representing 16,000 hospital cleaners, orderlies and clerical staff, is the largest of the Health Services Union’s four Victorian branches.

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