Union funds blown on Bradman and Bono

Don Bradman during the 1948 "Invincibles" tour. A bat signed by members of his famous team was among items purchased with union funds. Source: Supplied

DISGRACED former Health Services Union boss Michael Williamson spent thousands of dollars on extravagant memorabilia, including paintings of Donald Bradman and rock star Bono, helping to wipe $7 million from members' value.

A damning report reveals years of mismanagement left the HSU's flagship NSW branch almost insolvent, with just $191,000 in equity by December and surviving on "borrowed money".

More than $21 million in property assets has beenwiped out by debts totalling $17.17 million - and other liabilities including "outstanding" payrolland superannuation debts.

The internal minute, from the December 2012 meeting of the "branch committee of management", also reveals a series of "very high, one-off costs" hit union finances.

These include $395,000 for the corruption report delivered by Ian Temby QC and $1.6 million to cover the costs of the HSU going into administration last June.

Mr Williamson, who is facing criminal charges following a NSW police investigation, spent tens of thousands of dollars of union funds on sporting and other memorabilia, the report finds.

These included various cricket bats, including one signed by the 1948 "Invincibles", sports jerseys, watches, luggage scales and a painting of Sir Donald Bradman and another of U2 frontman Bono.

These are being "liquidated" by the union's new management team - headed by NSW branch secretary Gerard Hayes - to help fund the "fight against Barry O'Farrell's cuts to health".

The once powerful HSU has been plunged into crisis after revelations that its former national secretary and ex-Labor MP Craig Thomson allegedly misused up to $500,000 between 2002 and 2007. Mr Thomson is facing criminal charges in Victoria and is also subject to civil proceedings after a three-year Fair Work Australia investigation.

His one-time mentor, Mr Williamson, is alleged to have employed family members in key union roles and is facing criminal charges.

The internal minute says Mr Hayes' team found finances were "worse than previously expected", the NSW branch holding equity of just $191,000.

"As a result of the mismanagement of the union prior to the period of administration, and also the costs associated with the amalgamation between NSW and Victorian branches of the HSU, it is estimated that the union has lost about $7m in equity," the minute says.

Mr Hayes says Mr Williamson is taking steps to improve finances, including cutting his salary from $395,000 to $140,000 a year.

"Obviously, we were left with a challenging financial situation, but our austerity program of selling company cars, auctioning off memorabilia and slashing salaries will put us back in the black within six to nine months," Mr Hayes told News Limited.

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