The powerbroker unseated by ‘traitors’ | Agents of Influence | Part 4

Key Concepts

• Gray Corruption: Bending of rules, not strictly criminal, but unfairly favoring allies.
• Branch Stacking: Inflating union branch membership to gain political influence.
• Ghost Printing Scheme: A system of sham printing invoices to funnel union members' money into personal pockets.
• Reprisal Conduct: Actions taken against individuals for making complaints or providing evidence.
• Factional Warfare: Internal conflicts within a political party or organization based on competing factions.

Health Services Union (HSU) Saga: Diana Asmar and Labor Party Influence

1. The $2 Million Training Contract and Gray Corruption

• In 2018, Premier Dan Andrews announced a $2 million training program for hospital workers to deal with workplace violence as a core election promise.
• The Health Services Union (HSU) was chosen to run the program, despite having no relevant experience.
• IBAC (Victoria's anti-corruption watchdog) deemed this "gray corruption," a bending of rules to unfairly favor allies.
• The Department of Health opposed the decision, citing the HSU's lack of qualifications.
• Diana Asmar, secretary of the Victorian HSU's largest branch, was a key backroom player in the Labor Party.

2. Diana Asmar's Rise to Power

• Anakah Blau investigated how Diana Asmar gained the power to influence Dan Andrews.
• Brad Norington, a journalist who wrote a book about the HSU, provided insights.
• Asmar was previously the deputy mayor of Daraban Council, known for her unconventional, charismatic personality.
• She ran for leadership of the HSU branch number one, the largest branch, which held significant power within the Victorian ALP.
• Her husband, David Asmar, was a well-known branch stacker in the ALP's right faction.

3. Internal Conflicts and Power Struggles

• Leon Flynn, a nurse turned organizer, opposed Asmar and was elected as assistant secretary.
• Asmar's team allegedly brainstormed ways to remove Flynn, including a fabricated sexual harassment complaint.
• Flynn was ultimately frozen out, with staff instructed not to communicate with her.
• Asmar brought in her best friend as general manager, effectively sidelining Flynn from financial responsibilities.
• New roles were created for Asmar's allies, many of whom had helped with her campaign, leading to complaints from union members.

4. Allegations of Misuse of Union Resources

• Flynn discovered evidence of election materials for Kimberly Kitching's MP campaign being produced using union resources.
• Gift cards were allegedly used to purchase Labor Party memberships for branch stacking.
• Flynn found receipts for excessive spending on air travel, overnight stays, and parties, including a $50 kangaroo steak.
• Massive legal fees of $160,000 were incurred, seemingly unrelated to union business.

5. Leon Flynn as a Whistleblower

• Flynn made a complaint to the Fair Work Commission and testified at the Trade Union Royal Commission.
• She feared being framed for wrongdoing and losing her house.
• Flynn alleged that she was being tracked by Asmar, with a GPS device in her car.
• She described an incident where she was followed by a car she recognized as Asmar's, driven by David Asmar.

6. Royal Commission Findings and Aftermath

• Asmar and Kitching denied bullying Flynn and denied any wrongdoing.
• David Asmar allegedly went to Lebanon to avoid testifying about a union slush fund scam.
• The Royal Commission focused on allegations that Kitching took organizers' permit tests for them.
• The commission recommended that the Commonwealth DPP consider criminal charges, but none eventuated.
• The commission found the branch to be highly dysfunctional, with a culture of unhappiness, bitterness, and fear.
• Asmar continued to run the union for the next decade, maintaining her political influence.

7. Diana Asmar's Media Influence

• Asmar used the media to convey her messages, exemplified by her public calls for Health Minister Jenny Macakos to resign during the hotel quarantine saga.
• Macakos resigned 24 hours later, demonstrating Asmar's power.

8. IBAC Investigation and Fair Work Allegations

• IBAC investigated Asmar's influence on Dan Andrews regarding the $2 million contract.
• Fair Work alleged that Asmar claimed over $120,000 in inappropriate reimbursements for booze, food, and cinema tickets.

9. Internal Challenge and Reprisal Conduct

• Two senior employees made formal union complaints against Asmar.
• Jake McInness, Asmar's communications director, provided an affidavit detailing alleged reprisal conduct.
• Asmar allegedly discussed sacking the female employee who made the complaint, locking her out of IT systems, and involving the police.
• She allegedly threatened to "kill her" and discussed sending around semi-nude photos of the employee.
• McInness was allegedly asked to make a false complaint against the employee.
• McInness lost IT access after his name appeared in legal proceedings.
• Asmar allegedly made threatening remarks at a delegates conference, leading to further intimidation.

10. Ghost Printing Scheme Allegations

• Fair Work alleged that Asmar and her husband funneled $2.8 million of members' money through a ghost printing scheme.
• The union allegedly paid invoices for products and services never received.
• $1.2 million was allegedly handed back to the Asmars personally.
• The CFMEU is also alleged to have funneled $180,000 through the scheme to support Asmar's reelection campaign.

11. Asmar Steps Down

• Asmar and the union's national office reached a deal for her to step down.
• The trial regarding the allegations was cancelled.

12. Conclusion

• Diana Asmar centralized power within the HSU, allegedly exploiting the collective for personal gain.
• The saga highlights the potential for abuse of power within unions and the importance of accountability.

Synthesis/Conclusion

The HSU saga, centered around Diana Asmar, reveals a complex web of political influence, internal power struggles, and allegations of corruption. From gray corruption in securing a government contract to alleged misuse of union funds through ghost printing schemes, the case illustrates how power can be centralized and potentially abused within unions. The story underscores the importance of transparency, accountability, and the role of whistleblowers in exposing wrongdoing. Ultimately, the saga led to Asmar's downfall, highlighting the limits of unchecked power and the potential for the collective to fight back.