Michael Williamson’s life is going from bad to worse as his corruption case progresses through the courts.
Now they are unpacking his mistresses life.
The long-time mistress of disgraced Health Services Union boss Michael Williamson is the target of new court action launched by the union to recover $2.4 million of misappropriated funds.
Proceedings began in the NSW Supreme Court on Tuesday to recoup the money from the union’s former procurement officer Cheryl Rose McMillan and her close friend Alf Downing, whose company supplied union paraphernalia.
The action comes after the union’s former head, the ex-ALP national president Williamson, gave a formal undertaking to help recover money from others, including his former lover, Ms McMillan.
”We gave an undertaking to the members that we would pursue any moneys that had been misappropriated and return them to the union,” NSW HSU secretary Gerard Hayes said of the court action. ”This is another step in that process.”
The civil action has been launched over a plan devised by Williamson and Ms McMillan in early 2005 in which Mr Downing’s company Access Focus would invoice the union for his supplies at an inflated rate.
Under the agreement, Mr Downing kept 50 per cent of the inflated amount while the other half was paid to Ms McMillan on the basis she shared it with Williamson.
The union will allege that Mr Downing retained no less than $1.2 million from the agreement in inflated funds on top of cash payments of $1.2 million to Ms McMillan. Of that, she passed on about $600,000 to Williamson.
The union will argue this secret arrangement constituted a dishonest and fraudulent design. The arrangement was never disclosed to the union council or union members and no evaluation was done as to whether the prices paid for the goods and services supplied by Access Focus were consistent with the market value.