At precisely (as always) 11.55 The Commissioner resumed the sitting.

The Commissioner asked Mr Stoljar about details of one entry relating to Ms Holt's categorisation of "honorarium fees" and he performed some arithmetic, arriving at a satisfactory conclusion so far as accounting for those expenses was concerned.

Mr Stoljar explains that 3 sets of accounts have been produced to the Commission this morning in answer to a Notice to Produce issued to a person or entity not named by the Commission during this session.   Ms Holt examined the 3 lever arch folders and declared that they were prepared by her and that they contained original details of creditor accounts including invoices, statements and internal (to the branch) documents regarding expense claims and approvals.

The Commissioner examined the documents and they were introduced into evidence.

Ms Holt stated that during "the flooding" of the branch offices her records were not flooded.   Evidence was given that after the merger of the Victoria No 3 branch with Williamson's HSU East all the records were taken from her and sent to Sydney.

Ms Holt states that the NHDA account was set up and operated with BCOM approval.

Ms Holt was taken to an email entitled BCOM Report from 2010.   She states that the purpose of the preparation of the financial statements was for the accounts to be presented to a Branch Committee of Management meeting.   Referring to a PandL for July to April 2010 - the accounts referred to a transfer of money from the "Peter Mac" money to the NHDA account and that the transaction was properly recorded in the branch's financial accounts.

Ms Holt describes the branch's auditor, Mr Agostinelli working at the office during the period of the financial audit of the branch's accounts.   She describes making all the requested financial records available to the auditor or his assistant and that the auditor and his assistant worked at the branch during the audit rather than working at their own offices.

Ms Holt stated that once the auditor's report was prepared it was presented to and considered at the BCOM meeting.

Ms Holt is taken to the 2011 budget and an entry for the NHDA and Ms Holt was asked to agree that the NHDA is budgetted for and appears in the budget.   Ms Holt recalls that she based the 2011 budgetted figure for money in the NHDA account was based on historical data of prior years.

Ms Holt confirms that she asked by Barry Gibson (Williamson's financial controller) for copies of invoices relating to payments made to the NHDA account.   She replied that there were no invoices because pursuant to the BCOM approval payments to the NHDA were made on the resolutions passed by the BCOM.

Ms Holt confirms that she accounted for 10 tickets for a fundraising event as political donations because that is what the documents related to the expense made clear.

 Ms Holt was excused at 12.23

Ms Holt has been sworn in, making an affirmation.

Ms Holt describes her qualifications in book-keeping since the mid 1980s.   In 1988 she started at the HSU No 3 Branch (Kathy Jackson's branch) where she remained until 2010.

Ms Holt describes that she was the book keeper for the whole period and was responsible for all internal accounting and finance related functions.

Ms Holt refers to "sitting fees" or the 'honorarium' that was paid to Branch Committee of Management members for meetings.   The fees were paid in cash, usually the aggregate was around $8,000 for the meeting, the money was distributed to members of the BCOM with the exception of Kathy Jackson who did not receive and honorarium.

Ms Holt is taken to a MYOB or similar file of financial transactions.   She explains certain cash transactions.   She refers to the auditor examining the accounts and any adjustments in accounting for various transactions that the auditor might have made. 

Ms Holt states that in the minutes the BCOM recorded its decision that Ms Jackson should receive some honorarium in relation to her work - the auditor apparently picked up that the amount was owing to Ms Jackson but had not been paid to her.

Ms Holt states that the amount was $48,000 and that it was in respect of payments due but not paid over a 3 year period to Ms Jackson.

Ms Holt states that for "authorised payments" Ms Jackson was the delegated authority or signatory.

Ms Holt states that Kathy Jackson had two business credit cards which were used for paying union expenses and the bills for each was paid by direct debit.

Mr Stoljar just asked, "So amounts on those credit cards were always for union expenses."

Ms Holt, "oh yes, strictly".

At 11.35 the Commission adjourned until 11.55am.

Ms Wilkinson describes being Vice President of the HSU No 3 branch, she is a radiation therapist by profession.

Ms Wilkinson will give evidence about the financial statements for the No 3 Branch during the period that Kathy Jackson was the branch secretary.

Mr Stoljar is showing Ms Wilkinson sets of minutes of the meetings of the Branch Committee of Management.   They are speaking about minutes for a meeting during 2008 when Ms Jackson was Secretary.

Now speaking about the meeting of 25 September 2008.   Stoljar points out the Secretary's report on branch finances, including a profit and loss report.  Ms Wilkinson agrees that Ms Holt (who will give evidence today) prepared the branch financial reports.   Further discussion about the exhibits including more minutes of meetings up to and including December 2008.   Mr Stoljar, "The Secretary gave a report on branch finances and the Secretary be authorised to spend up to $15,000 on certain expenses - in the event an account can't be set up in time that the secretary be authorised to spend the money and be reimbursed."  Ms Wilkinson agrees that represents a normal practice within the branch.

Mr Stoljar shows Ms Wilkinson financial reports for 27 March 2009 - "Accounts were circulated and there was some discussion....so the BCOM wasn't just rubber stamping what was put before it?" Ms Wilkinson, "Oh no no no, we would take a very strong interest in the financial records of the branch.   All of the members of the committee did".

Stoljar, "And these were the reports that Ms JACKSON had put together", Wilkinson, "Yes".

Mr Stoljar takes Ms Wilkinson, who was a member of the BCOM at the time through more financial reports presented to BCOM meetings during 2009.    Mr Stoljar states that he is taking Ms Wilkinson through what he described as Volume One of what will be a three volume submission of financial records exhibited by the Auditor for the branch Mr Agostinelli.

Mr Stoljar states that he will now show Ms Wilkinson a bundle of documents that will be exhibited by Jane Holt the bookkeeper.   They are speaking about a profit and loss statement that Ms Wilkinson agrees was prepared by the book keeper Ms Holt.  

Mr Stoljar refers to an entry in the accounts for $181,337 referred to as "Honorarium" - she explains that it was standard practice for the members of the BCOM to receive fees and costs.

Ms Wilkinson explains that the union received an unexpected court endorsed award of a couple of hundred thousand dollars referred to as the Peter Mac money.   Ms Wilkinson explains that amounts of money were shown in the formal accounts of the branch as being approved for transfer to the National Health Development Account by the BCOM.

Mr Stoljar shows Ms Wilkinson entries in the profit and loss statements referring to payments to the NHDA account from the branch's other accounts.   Ms Wilkinson states that approval to transfer the money came from the BCOM.

Mr Stoljar refers to accounts for July through December 2007 - points out figures for honorarium and notes that an amount of $16,000 was approved by the BCOM for transfer to the NHDA account.

Mr Stoljar takes Ms Wilkinson through more profit and loss accounts, Ms Wilkinson confirms that Ms Holt prepared the profit and loss statements for the BCOM during the entire period.   Refers to entries noting payments to the NHDA and authorisation for "honorarium" payments to be made.

Mr Stoljar refers to emails from the book keeper Ms Holt to Ms Jackson - refers to substantial discussion regarding the NHDA and various honorarium payments.   Ms Wilkinson confirms that every transaction was reported to the BCOM and endorsed by it with the authority of the BCOM.

Wilkinson states that she was a member of the BCOM and she had no concerns about the financial management of the branch.

 Ms Wilkinson explained that the union's "Peter Mac" money was unexpected and the branch resolved that it should be used under Kathy Jackson's leadership to advance the industrial and political interests of the union.   She states that all expenditure was authorised by the BCOM.

Ms Wilkinson explained that because Ms Jackson was not receiving sitting fees or other emoluments for various meetings, the BCOM authorised that certain payments be made to Ms Jackson from the NHDA or "Peter Mac" money.

Ms Wilkinson agrees that Ms Jackson was authorised to spend money from the first resolution made by the BCOM when the Peter Mac money was awarded to the union.   Ms Wilkinson states that it was always accepted and well above board and there were no concerns about Ms Jackson's use of that money in any way.

Ms Wilkinson agrees that money could well have been spent on election of parliamentary candidates or union candidates for union elections. 

In 2007 Ms Jackson proposed that some of the Peter Mac money in an advertising campaign against the Howard Government's WorkChoices campaign.   Ms Wilkinson stated that the particular proposal was not approved and the money was not spent, however the matter was brought to the BCOM and the BCOM's decision was enacted.

Ms Wilkinson states that she did not recall the details of the NHDA when various journalists asked her about it recently, she had not retained copies of the branch minutes - she states that she did not recall the acronym 'NHDA" because the BCOM's vernacular was the words "Peter Mac Money".

She states that the BCOM was very particular in questioning anything the members did not understand.

Ms Wilkinson states that each member of the BCOM in Ms Jackson's branch received and was able to retain financial reports.   She describes attending national meetings in respect of Mr Williamson's branch, the HSU East and that all sets of financials and other statements were distributed briefly at meetings and were always collected, members were not able to retain copies.

Ms Wilkinson states that she wrote to Peter Mylan and Gerard Hayes seeking copies of important financial statements that she knew existed and were in the possession of the HSU East leadership.   She states that she received no reply.

Ms Wilkinson is being asked about the salary increases set out in the Temby report here

Ms Wilkinson states that Ms Jackson and Mr Bolano were not in favour of the payrises and wanted to vote against them.

Ms Wilkinson states that she was not given a comprehensive statement of the pay rises that Williamson brought to the meeting of the HSU East council.   She states that the Temby report table (above) was the first time she saw a comprehensive statement of the quantum of the increases.

Ms Wilkinson states that the Victorians were "wet behind the ears" so far as the way that Williamson ran the HSU East council meetings.   Wilkinson states that only Ted Hinge and Dr Anthony Llewwellyn were the only NSW members who spoke out against Williamson in any way.

Ms Wilkinson states that Kathy Jackson and Marco Bolano spoke out against the payrises contemplated by Williamson.

Ms Wilkinson states that during meetings of the HSU East Council meeting chaired by Michael Williamson, resolutions were approved on a quick vote - it always just went through "voom".

AT 11.12AM Ms Wilkinson was excused.

After Ms Wilkinson was excused Counsel Assisting the Commission tendered the statement of Reuben George DICKSON of 5 June 2014 setting out the Peter Mac settlement and exhibiting minutes of the BCOM meetings and finance reports for the HSU No 3 Branch, Ms Jackson's branch.

CLICK HERE TO WATCH LIVE

In preliminary matters this morning Mr Craig McGregor's lawyer made an application to appear on Mr McGregor's behalf.

Lawyers for the HSU set out the process for elections for officials of the HSU - the rules of the HSU will be admitted into evidence and exhibited on the Commission's website.

Ian Temby QC is now giving an explanation of the Defined Benefits Scheme for superannuation available to Williamson and 13 others within the HSU.

Mr Temby advised that Mr Williamson has been paid out superannuation benefits following his departure.     He described the disposition of Mr Myland and Mr HAYES's superannuation benefits.

CLICK HERE TO LISTEN

By Jason Morrison

Senator Arthur Sinodinos stood aside from his Assistant Treasurer role in March because of unresolved inquiries in the NSW ICAC. Sinodinos denies any wrong doing. 

The NSW Police Minister Michael Gallacher stood down when someone alleged he was tarnished in the same inquiry - even though he completely denies suggestions of wrong-doing. 

So far, Bill Shorten has been named twice in activities of interest to the Union Royal Commission. 

Bob Kernohan gave evidence that Shorten told him to think of his career, and drop his pursuit of slush fund allegations in 1996.

And yesterday, Shorten became directly involved in elections of the troubled Health Services Union when he was a senior member of the Rudd government in 2009 by donating $5000 to a candidate’s campaign, it was alleged at the royal commission into union corruption today.

In fairness, Bill Shorten disputes both accusations - but so did Sinodinos and he's gone and so did the NSW Police Minister and he's gone to. 

So, back to the start .... When do you reckon the press gallery might start questioning the suitability of Bill Shorten being Opposition Leader?

Would a conservative politician be afforded the same benefit of the doubt?

by Jason Morrison

We touched on this some months ago but today The Daily Telegraph confirms: 

Mr Wilson’s Melbourne solicitor Alex Lewenberg yesterday said Mr Wilson enjoyed a year’s free legal advice arranged through pro-bono group Justice Connect.

The group specialises in helping not-for-profit organisations and has helped asylum seekers, children in detention and a transsexual prisoner seeking hormone therapy to get legal representation.

Justice Connect ... would that be the same Justice Connect that Labor's Attorney General Mark Dreyfus was proud to fund;

Lawyers with letters after their name cost plenty - many thousands a day.

By contrast, Bob Kernohan appeared before the Commission unrepresented. 

Why is the taxpayer helping Wilson who's done a grand total of what for the country?

The AFR's Aaron Patrick wrote the book "Downfall - How the Labor Party ripped itself apart".

It's worth spending a few minutes to read Aaron's take on Bill Shorten's use of the Commonwealth's resources to make sure that Kathy Jackson was unable to lead the HSU.   Shorten's lawyer was the former HSU official Val Gostencnik - who also happened to  be the Fair Work Australia legal advisor in the Craig Thomson investigation.   After this episode Shorten appointed Gostencnik to the Fair Work Commission.

Here's a link to the ABC's Media Watch program from last night.

UNION ROYAL COMMISSION STORY LACKS PROMINENCE ON ABC TV NEWS

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