Craig Thomson faces allegations that his union credit cards were used to pay for escort services and to withdraw more than $100,000 in cash, as well as bankroll his election campaign for the central coast seat of Dobell. Health Services Union officials concluded last year that union credit cards issued to Mr Thomson - and other financial resources - were used for election campaign spending. These had not been disclosed under electoral law.Mr Thomson, 44, was the union's national secretary from 2002 to 2007 and is chairman of the House of Representatives economics committee.
The union officials also concluded that Mr Thomson's union Commonwealth Bank credit card had been used to withdraw cash advances totalling $101,533 during his five years as national secretary.And the documents suggest the Commonwealth Bank MasterCard in Mr Thomson's name was used to make payments to operators of a Sydney brothel and two escort services as well as numerous payments to restaurants and bars and for purchases of personal items.The allegations are outlined in a letter written by the union's national secretary, Kathy Jackson, to the law firm Slater & Gordon in December asking it to hire forensic accountants to examine possible financial irregularities during Mr Thomson's period in office.But Mr Thomson, who was an HSU official for nearly 20 years before securing preselection for Dobell, one of the Coalition-held marginal seats Labor targeted in the 2007 election, strenuously denied the allegations.He said yesterday they were the result of feuding in the union's Victorian branches, with "more and more outrageous claims and counter-claims being made" by factional opponents.Mr Thomson insisted there was no truth to suggestions his union credit card had been used to withdraw cash from ATMs every few days for five years or that union funds and resources used in his election campaign had not been appropriately authorised or disclosed.
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