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Kathy Jackson says stress of tackling corrupt boss put her in mental hospital Kathy Jackson says stress of tackling corrupt boss put her in mental hospital
(about 9 hours later)
Union official Kathy Jackson sobbed as she described being forced into a mental hospital as the stress of taking on corrupt union boss Michael Williamson took its toll. Whistleblower Kathy Jackson has fiercely denied corruption allegations and described how the stress of taking on crooked union officials forced her into a mental hospital.
Jackson broke down as she gave evidence to the royal commission into union corruption, describing how she was committed to a Melbourne psychiatric hospital in September 2011, a week after finding a shovel on her doorstep in an apparent death threat. Jackson broke down giving evidence to the royal commission into union corruption on Wednesday, sobbing as she recounted being committed to a Melbourne psychiatric hospital in September 2011, a week after finding a shovel on her doorstep in an apparent death threat.
"I have never been under such immense pressure or stress in my whole life," the Health Services Union national secretary said. "I have never been under such immense pressure or stress in my whole life," the Health Services Union (HSU) national secretary said.
"I now understand what drives people to do certain things." Allegations of corruption against Jackson surfaced when Craig McGregor took over from her as secretary of a Victorian branch of the HSU in 2012.
Jackson was discharged from the hospital after four days and resumed her campaign to expose Williamson's corruption, despite advice from her doctors to walk away. Between April 1998 and May 2011, $1,136,211.70 was reimbursed to two of Jackson's personal credit cards, McGregor said on Tuesday. He then admitted going to the press before properly investigating what he conceded was “speculation”, with Jackson on Wednesday saying he had "fed the story" to Fairfax.
Earlier on Wednesday, Jackson said her suspicion that Williamson was crooked "crystallised" after visiting his "palatial" holiday home, but she was worried about reporting him due to his power. The credit cards, she added, belonged to the union and were used for "travel, accommodation, filing fees for court, sundry expenses, Christmas parties, entertainment."
In January 2011, Jackson and her children went to the now jailed former Labor president's new retreat at Brightwaters, near Lake Macquarie. Her staff also used the cards, she said.
"It was this occasion which crystallised my suspicions of corruption," she told the commission in Sydney. "Did you use that money for personal expenses?" senior counsel assisting the commission, Jeremy Stoljar, asked Jackson.
"I perceived that Mr Williamson and his family enjoyed a lifestyle that could not be sustained on his legitimate income." "No. I did not," she replied.
All of Williamson's children had been to private schools, "there was bordered herringbone hardwood parquetry throughout ... a high-end audio-visual system built into the room ... and four European fridges" in the "palatial" lakeside property, Jackson said. Jackson said she hadn't been able to verify the amount as she couldn't access relevant HSU and bank records.
There was also talk of building an in-ground pool and cabana, and buying a boat. The commission heard that material supporting Jackson's case was thrown out in a mass clean-up at the HSU's South Melbourne offices. Other documents were destroyed when the offices were severely flooded and staff threw out boxes, she told the commission.
Jackson said she asked Williamson what he would do if his lake view was blocked by a house being built next door. "Would that material have assisted you in meeting some of these complaints that have been raised?" Stoljar asked.
"He said 'oh don't worry about that. We've bought the place next door as well,’" Jackson said. "Definitely," she responded.
Despite her concerns that Williamson's opulent lifestyle was funded by corruption, Jackson said she "agonised" for months about whether to report her boss. In 2012, jailed former HSU boss Michael Williamson took over Jackson's Melbourne office, where she kept copies of branch meeting minutes, after an organisational restructure.
"I felt conflicted as I knew I had a duty to do something about the corruption I was witnessing, however, Mr Williamson's power and standing within the ALP and the Labor movement made me hesitant to take any action without real evidence," she said. "(They) were taken along with the rest of the No.3 branch records ... and placed in a van under the supervision of Mr Gerard Hayes for transport to Sydney," Jackson said. "I have never seen the minute book or working copy folders since that time."
Jackson had tried to obtain the union’s financial records several times, but they were never released to her, outside meetings, on the grounds that they were commercial in confidence, the commission heard. Jackson said she feared being "financially destroyed" by challenging Williamson and kept silent for months before going to police.
Fears that she would suffer similar treatment dished out to Mark Hardacre, another HSU official who made allegations against Williamson, also kept Jackson silent. The commission heard that in late 2010 Jackson was approached by Williamson, who said he needed a token female on the board of the State Government Employees Credit Union in Sydney.
"Everybody knew that if you took on Mr Williamson he destroyed you financially," she said. "You're going to be on this board, darl. They need some girls," Jackson said she was told by Williamson. "And keep in mind darl, if anything of mine comes up, you're to approve it. I am applying for another loan from SGE.
"That is what Mr Williamson did to Mr and Mrs Hardacre." "When it comes before the board I don't want you to make any fuss, you are to let it go through."
Meanwhile, HSU NSW secretary Gerard Hayes disputes Jackson's evidence, saying she "never presented documentary evidence of Michael Williamson's corruption to me". Jackson will continue her evidence on Thursday.
"I formed my view of Michael Williamson's corruption completely independently of Kathy Jackson," he said in a statement.
"I paid a great price for standing up to Michael Williamson, sacrificing my job, suffering abuse and living with uncertainty for a considerable period. I look forward to having the chance to tell my story at the royal commission."
The hearing continues.