Kathy Jackson ordered to repay HSU $1.4 million

Kathy Jackson ordered to repay HSU $1.4 million

The Federal Court has ordered former Health Services Union boss Kathy Jackson to pay more than $1.3 million in compensation, for misappropriating union funds.

The union had sued Ms Jackson in the federal court, claiming she had set up a slush fund with the proceeds of a union settlement with the Peter MacCallum Cancer Centre in Melbourne.

Its alleged she then used the money for her own lavish lifestyle, including significant cash withdrawals, luxury goods, valuable artwork and fine wine and dining.

Ms Jackson declared bankruptcy last month and chose not to attend the trial, but the court has ruled she must repay around $1.4 million.

The investigation in to Ms Jackson was launched after she blew the whistle against HSU officials, landing former union boss Michael Williamson in jail for fraud.

Justice Richard Tracey has also ordered her to pay a further $67,912 of overpaid salary, for 40 weeks of overseas travel she undertook between 2003 and 2010, in which she continued to claim her normal salary while letting leave accrue.

Current National Secretary of the HSU Chris Brown says he is very pleased with the result.

“I think it’s an important day for HSU members, it’s been a long time bringing people to account, not just Kathy Jackson but also Michael Williamson and Craig Thomson,” he said outside court.

“We’re now at a stage where we’ve done what we said we would do, that is hold them to account and where possible recover the monies that were stolen from the union.”

He says despite Ms Jackson declaring bankruptcy, he is confident the union will be able to reclaim at least some of the money stolen from it.

Image: AAP

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Libby Dreyer
Libby Dreyer 1729 posts

Libby has worked as a Senior Journalist at National Radio News since February 2011. She graduated with a Bachelor of Journalism from the University of Canberra in December 2010.

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