Kathy Jackson made 'secret' donations to politicians and unions, court told
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Version 0 of 1. Former Health Services Union boss Kathy Jackson set up schemes to hide the fact she was donating member funds to politicians and unions, a court has heard. The union is suing its former national secretary for “in excess of $2.5m” over claims she misappropriated $660,000 of union funds for her personal use, including holidays and shopping. The union’s lawyer, Mark Irving, told the federal court in Melbourne on Tuesday Jackson had set up a scheme to support candidates in elections and make political donations from the National Health Development Account (NHDA), without declaring donations to members. The NHDA was operated by Jackson in a way that was not audited or accounted for by the union, meaning the money was “as good as in her pocket”, Irving told the court. “Ms Jackson set up the NHDA for the purpose of avoiding disclosure,” he said. “She wants to hide what she is doing.” As both national secretary and a branch secretary Jackson was required to declare donations to members, who were entitled to know where their funds went, he said. But the evidence revealed that no declarations were made by Jackson between 2003 and 2011, Irving told the court. “Setting up schemes to make donations secretly circumvents that purpose,” he said. “It undermines the very democratic nature of the organisation.” Irving said that in almost all the cases Jackson had used her position for her own advantage, or the advantage of a third party.The trial had been scheduled to begin last month but was delayed when Jackson declared bankruptcy. She did not appear for the start of the trial on Tuesday, after sending a letter to the court saying she could not afford to be represented at trial, and that any claim against her was now a claim against her estate. “I do not consider that I have any entitlement to further participate in the proceeding, nor do I intend to do so,” she wrote in the letter released by the court. The trial continues. |