[Australia] Trade union bosses probed over alleged millions spent on ‘ghost printing’

According to reporting from the Australian Financial Review (AFR) and other Nine newspapers, 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 involved are reportedly print management companies. The investigators include the Victoria Police Fraud Division and Fair Work Commission.

The AFR stated that the bulk of the money in question - around $2.8m - was funnelled through the Victorian branch of Health Services. Ms Asmar is its head. Mr Sekta is alleged to have sent $180,000 from CFMEU in respect of issued invoices.

But the AFR said, “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 now probing why invoices issued by the printers were paid by the unions on the same day yet without any paperwork detailing any actual print jobs.

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,” the AFR said.

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

If the allegations are found to be true, this reportedly 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, the secret owner of a print broking business that he used to steal $1.8m from Surf NSW while serving as its general manager was sentenced to a three-year three-month prison term.

Source: Print 21 

(Quotes via original reporting)

According to reporting from the Australian Financial Review (AFR) and other Nine newspapers, 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 involved are reportedly print management companies. The investigators include the Victoria Police Fraud Division and Fair Work Commission.

The AFR stated that the bulk of the money in question - around $2.8m - was funnelled through the Victorian branch of Health Services. Ms Asmar is its head. Mr Sekta is alleged to have sent $180,000 from CFMEU in respect of issued invoices.

But the AFR said, “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 now probing why invoices issued by the printers were paid by the unions on the same day yet without any paperwork detailing any actual print jobs.

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,” the AFR said.

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

If the allegations are found to be true, this reportedly 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, the secret owner of a print broking business that he used to steal $1.8m from Surf NSW while serving as its general manager was sentenced to a three-year three-month prison term.

Source: Print 21 

(Quotes via original reporting)