The fate of one whistleblower whose evidence was presented to the Royal Commission into Institutional Child Sexual Abuse

Extract from Australian Newspaper History Group May 2015 newsletter:

82.1.1. Jewish newspaper and a whistleblower

The Australian Jewish News (AJN) has made a senior journalist redundant after he passed on information that helped a royal commission and led to the resignation of Australia’s most senior Rabbi (Australian, Media section, 2 March 2015). Adam Kamien, who had worked for AJN since 2006, became the only person in the newsroom to be made redundant following an internal investigation into how text messages ended up being used by the Royal Commission into Institutional Responses to Child Sexual Abuse. The text message, sent from the Rabbi Meir Kluwgant to the editor of the AJN, Zeddy Lawrence, and read out at the royal commission, described the father of an abuse victim as a “lunatic” who neglected his children. “Zephaniah is killing us. Zephaniah is attacking Chabad. He is a lunatic on the fringe, guilty of neglect of his own children. Where was he when all this was happening?” Under intense cross examination, Rabbi Kluwgant said he sent the message to Lawrence during the commission evidence of Zephaniah Waks, father of victim and whistleblower Manny Waks. Soon after admitting to the text, Rabbi Kluwgant resigned as president of the Organisation of Rabbis of Australasia.

Yeshiva College sex abuse victim Manny Waks told the Australian Kamien was a whistleblower who courageously ensured that justice was done. “In my view it’s clear that the journalist was effectively dismissed for disclosing to me a vital bit of evidence for submission to the royal commission,” he said. “Had the text message not been disclosed, Rabbi Kluwgant would probably still have his senior leadership positions and victims and their families would still be accused of exaggerating the intimidation. The journalist’s disclosure ensured the truth was told. It vindicated us fully.”

The AJN launched an internal investigation into how the text message found its way to the royal commission and Kamien was suspended on full pay pending the outcome of an investigation. A few days later the AJN confirmed it had concluded its investigation and would “take no further action in relation to the matter”. But on Friday, 27 February, group general manager Rod Kenning sent an email to staff saying that Kamien’s position as senior journalist had become redundant as part of a restructure of the editorial team.

Royal Commission warns woman Tony Abbott called "honest", "credible" and "heroic" that she may have to be examined further over alleged wrongdoing

Back in 2012 Australian Prime Minister (then Coalition Opposition Leader) Tony Abbott described then Secretary of the Health Services Union, Kathy Jackson, as honest, credible and heroic because her war with political adversaries was embarrassing the Labor Party.

Since then widespread allegations of fraud and theft have surfaced in relation to Ms. Jackson, as well as reports of other unusual financial arrangements.

So it is no wonder that The Australian reported on 27 April 2015 that:

Royal commissioner Dyson Heydon QC has warned his inquiry is far from finished with Kathy Jackson, saying she will have to demonstrate strong ­reasons why her tenure at the Health Services Union should not be examined further.

Reopening the royal commission investigating trade union governance and corruption yesterday, Mr Heydon said he was not convinced by arguments that he should refrain from making findings about the former HSU ­nat­ional secretary while the union pursued her in civil proceedings. The union’s new leadership has also referred allegations against her to Victoria Police.

“It must be stressed that the ­issues affecting Ms Jackson should be dealt with, unless good cause is shown for a contrary course,” Mr Heydon said.

“The desirability of dealing with some or all of the issues ­affecting Ms Jackson is something to be considered later this year. It may be necessary to debate the matter, for the submissions of Ms Jackson’s solicitor ­opposed that course.”

Jeremy Stoljar SC, counsel ­assisting the royal commission, last year recommended criminal charges against Ms Jackson for submitting a “false claim” when she negotiated a $250,000 payment from Melbourne’s Peter MacCallum Cancer Centre for the HSU after a dispute over workers’ back pay, but Mr Heydon held off making findings about this in his interim report.

He said yesterday that it was more convenient to deal with ­issues surrounding Ms Jackson’s conduct in one go in his final ­report, rather than separating them too soon.

The HSU’s case against Ms Jackson is due to be heard in the Federal Court in June…….

Tony Abbott's "brave, decent woman" and Christopher Pyne's "lion of the union movement" has some questions to answer

The Kathy Jackson saga has been running for years now and along the way the Liberal Party has been happy to champion her statements and actions:

OpenAustralia:

25 August 2011

Tony Abbott (Warringah, Liberal Party, Leader of the Opposition) 

Kathy Jackson is a brave, decent woman, and she is speaking up on behalf of 70,000 members. I refer the Prime Minister to her words:

… there's been unauthorised use of credit cards, unauthorised expenditure that is not normal union expenditure and we want answers … This union and our members require answers …

25 Feb 2014

Christopher Pyne  (Sturt, Liberal Party, Minister for Education)

Kathy Jackson is a revolutionary, and Kathy Jackson will be remembered as a lion of the union movement. 

However, the Royal Commission Into Trade Union Governance and Corruption is now examining Ms. Jackson's alleged part in the rort of Health Services Union funds.

Excerpt from Royal Commission hearing transcript, 30 July 2014 at 10am:

        27            Ms Jackson gave evidence at the Commission concerning

        28       the NHDA on 19 June 2014.  At that time, only a limited

        29       number of documents concerning the NHDA had become

        30       available.  Since the hearing on 19 June 2014, the

        31       Commission has been able to obtain further material

        32       concerning the NHDA.  In those circumstances, the

        33       Commission considers it appropriate to recall Ms Jackson

        34       and to examine her further on this new material as part of

        35       its ongoing investigations into the NHDA.

        36

        37            The Commission's investigation into the NHDA includes

        38       the following topics:  first, the circumstances in which

        39       the NHDA was established and, in particular, the

        40       circumstances surrounding the receipt by the Victoria No 3

        41       Branch of $250,000 from the Peter MacCallum Cancer

        42       Institute in 2003 - specifically, whether the said sum of

        43       $250,000 comprised a windfall gain to the branch or unpaid

        44       backpay to union members working at the Peter MacCallum

        45       Cancer Institute or a reimbursement of expenses paid or to

        46       be paid from members' subscription moneys.

         1            Secondly, the intended purpose of the NHDA and the

         2       scope of authorisations given by the Branch Committee of

         3       Management to Ms Jackson for the transfer of funds to the

         4       NHDA.

         5

         6            Thirdly, the nature of the expenditures made from the

         7       NHDA between 2003 and 2013.

         8

         9            Some matters of procedure should be noted at the

        10       outset of today's hearing.  The hearings into the HSU that

        11       commenced on 16 June 2014 were, and the hearing today will

        12       be, conducted in accordance with Practice Direction 1.

        13       That practice direction provides, in effect, that after a

        14       witness has been examined by counsel assisting, that

        15       witness's evidence will be adjourned to a later date for

        16       any cross-examination.  Practice Direction 1 makes

        17       provisions for other interested persons to provide

        18       statements of intended evidence to the Commission in

        19       advance of the hearings being resumed.

        20

        21            Following the hearing on 19 June 2014, a number of

        22       persons, in accordance with Practice Direction 1, provided

        23       statements of intended evidence to the Commission.  Today's

        24       hearing is intended to provide those persons with notice of

        25       the further material now obtained by the Commission and

        26       Ms Jackson's further evidence.

        27

        28            A further purpose of today's hearing is that other

        29       persons who have not yet to date come forward, but who may

        30       have relevant information or evidence concerning the NHDA,

        31       will also have the opportunity to consider the further

        32       material and Ms Jackson's evidence in respect of it.  The

        33       Commission encourages any such person to come forward.

Ms. Jackson reaction as reported in The Sydney Morning Herald on 30 July 2014:

"I had no notice that I was going to be attacked today by senior counsel," she said, claiming an ambush. After two hours of heavy questioning where she was forced to admit previous important evidence had been wrong, Jackson abruptly asked the royal commission for access to a lawyer.

She got her wish – the inquiry was suspended for a month – but the fresh evidence unearthed by Stoljar and his colleagues suggests there is every chance she will ultimately be charged with criminal offences for the misappropriation of Health Services Union funds.

It would be a similar fate to that which befell the disgraced union leaders Michael Williamson and Craig Thomson, both of who were pursued by Jackson in her role as "whistleblower". Few call her that now, least of all her one-time friends in the Coalition, including Tony Abbott, who once dubbed her "heroic".

Jackson was forced to admit that important evidence she had given under oath at a previous hearing - concerning a $250,000 payment by Peter MacCallum Cancer Centre to her union during a $3.16-million dispute over back pay - was incorrect.

Now, her story changed to concede that there was no back pay to workers in the 2003 dispute and that the $250,000 was not a "windfall" to the union or "penalty" against the hospital as had been described.

Evidence showed it was to reimburse the union for expenses incurred in legal and staff costs. It is a key point. If there was no windfall or penalty, it can't be justified as anything but HSU members' money, if it ever could be otherwise.

Jackson's response to claims it was members money was simply "that's not how we saw it".

It is worth recounting what happened to that $250,000. It was transferred from the union and put in a bank account of which Jackson was sole signatory. She spent thousands from that account on herself - at David Jones, JB Hi-Fi, supermarkets and even a paediatric dentist.

She claims she had authorisation for that, though no records exist. It emerged on Wednesday that $50,000 of it went to her former husband, Jeff Jackson. As recently as June she had said she couldn't recall where that money had gone.

Stoljar did not buy her memory fail, telling her: "That's not credible evidence, is it, Ms Jackson."

Ms. Jackson set up the National Health Development Account [NHDA] described as an Unincorporated Association - a club or community organisation, not incorporated on 4 December 2003:

Full document is contained in M14.pdf

Other documents before the Royal Commission.

Abbott and Pyne's "brave", "decent", "revolutionary" woman comes a cropper after allegedly spending over $1 million of HSU union members' funds

http://youtu.be/-22egcUFTJo

The Sydney Morning Herald 6 June 2014:

A Fairfax Media investigation has also obtained a leaked NSW police statement that alleges that Ms Jackson knew of serious corruption claims involving Health Services Union bosses Michael Williamson and Craig Thomson for more than a decade before she reported the pair to police in 2011.

The witness, Sydney businesswoman Carron Gilleland, said in her signed police statement that she asked for Ms Jackson's help in 1999 after discovering the possible ''illicit'' use of funds by the pair.

The leaked police statement and other documents also suggest that a private company directed by Ms Jackson and her then husband Jeff Jackson was used both as a secret slush fund and a vehicle for charging the union for ''industrial consulting'' fees in the late 1990s.

Royal Commission into Institutional Responses to Child Sexual Abuse: Cardinal George Pell exposed as being selective with the truth

The Sydney Morning Herald  11 March 2014:

Mr Ellis came away from a pivotal meeting with then Archbishop Pell in 2009 with the impression that the litigation had been “a runaway train with nobody at the wheel”. This was after years of legal action that had crippled Mr Ellis mentally and financially…
“No, it left me with the impression that Cardinal Pell was completely out of the loop on all of that decision making,” Mr Ellis said…

The Saturday Paper 15 March 2014:

But on Monday morning, just minutes before Ellis entered the witness box, counsel assisting the commission Gail Furness, SC, in her introductory remarks, dropped something of a bombshell.

She referred to a witness statement by Cardinal George Pell, not yet public because he was not due to appear until later in the week, in which he expressed “some concern” about the way the litigation between the church and Ellis had been handled. She quoted Pell:

“Whatever position was taken by the lawyers during the litigation, or by lawyers or individuals within the archdiocese following the litigation, my own view is that the church in Australia should be able to be sued in cases of this kind.”...

The Sydney Morning Herald 17 March 2014:

Monsignor Rayner who as Archdiocesan chancellor was the official church authority to deal with victim’s complaints, said he told Cardinal Pell about the amounts of money victims of sex abuse sought. But for an agreement to be reached, “finally the decision would have been made by the Archbishop himself”.

The Sydney Morning Herald 18 March 2014:

 Cardinal George Pell was calling all the shots in the notorious case in which the Catholic Church fought off the damages claim of abuse victim John Ellis, his solicitor has confirmed to the child sex abuse Royal Commission. The 2007 Ellis case established the defence which has insulated the church from paying damages to victims in similar cases ever since... 

 Cardinal Pell himself described the litigation against Mr Ellis as “legal abuse”, the Commission has been told. The case caused Mr Ellis harm and suffering, according to senior counsel for the Commission Gail Furness.

 For more than a week, before the Cardinal himself takes the stand, the Commission has been grappling with the question of how much Cardinal Pell knew. Now Paul McCann, the senior partner with Corrs Chambers Westgarth, which conducted the litigation for the church from 2004, has told the Commission he had no doubt the instructions he received through Cardinal Pell’s private secretary Dr Michael Casey came from the Cardinal himself. Cardinal Pell is due to appear early next week.

“What was your understanding of those instructions and whether or not they were informed by Cardinal Pell?’, asked commission chair, Justice Peter McClellan.

Mr McCann replied: “I didn’t have any doubt that the Cardinal was being kept up to date on developments in the case and it is obvious from some of the exchanges that he was in fact seemingly giving instructions as to various steps.’’

According to the solicitor, he was instructed by Dr Casey, who he believed was doing Cardinal Pell’s bidding in relation to several key decisions in the case. These included refusing Mr Ellis’ offer to mediate before the litigation, refusing a compromise offer to pay $750,000 plus costs before the case started and the decision not to put a counter offer to Mr Ellis….

ABC News 18 March 2014:

In a statement presented to the inquiry earlier this month, Cardinal Pell said he was not aware of ex-gratia offers made to Mr Ellis.

But Monsignor Brian Rayner, who represented the Sydney Archdiocese and Archbishop Pell in Towards Healing matters in 2004, has contradicted that statement.

Under cross-examination, Monsignor Rayner maintained the Archbishop was informed.

"I spoke to the Archbishop on every amount of money that was being offered to any particular victim," he said.

Despite saying he did not have authority, Monsignor Rayner offered Mr Ellis a $5,000 increase on the $25,000 payment before gaining the approval of Catholic Church Insurance.

In a lively exchange with the Church's counsel Peter Gray SC, Monsignor Rayner maintained that he had informed Archbishop Pell of the ex-gratia offers made to Mr Ellis.

"My evidence is correct and I've seen the contrary thoughts of the Archbishop and the Archbishop also has occasions when his recollection of events is not clearly accurate," he said.

He also said the Archbishop was very involved in Mr Ellis' case… 

The Sydney Morning Herald 22 March 2014:

The Catholic Church's insurer insisted on being "kept in the loop" in the John Ellis case after lawyers expressed concern at Cardinal George Pell's "tooth and nail" approach, according to evidence at the child sex abuse royal commission.

Peter Rush, then general manager of Catholic Church Insurance Ltd, complained to the business manager of the Sydney Archdiocese about being "kept out of the loop" in the case and warned this could jeopardise the church's insurance, the commission heard…

Dr Casey testified that it was his job to convey instructions to the church's lawyers, Corrs Chambers Westgarth, but the instructions came from Cardinal Pell.

"The general instructions were to vigorously defend the claim and to defeat the litigation, is that right?" asked Gail Furness SC for the commission.

"Yes", Dr Casey replied…

At a 2009 meeting Cardinal Pell told him the church's move from mediation to vigorous pursuit of his case was "unfathomable", Mr Ellis said...

Abbott & Co are in the media attacking unions but I haven't heard them say a word about this

The Abbott Government is keen on attacking unions in the media and is establishing a royal commission into union finances, but it is silent on instances like this involving employers.

Australian Securities and Investment Commission via Recoup Contractor Debt Recovery:

The Daily Telegraph 5 February 2014:

Builders, subcontractors and suppliers who are reportedly owed $30 million have downed tools at a construction site in St Leonards after Steve Nolan Constructions went into external administration.

The workers are protesting at a site on the Pacific Highway where 95 one and two bedroom apartments with either single or double parking are being constructed. According to the Ralan Group website the units have all been sold.

However, the owner of the Ralan Group William O'Dwyer said that the missing money was not from his company's pockets....

"We have paid Steve Nolan Constructions every single dollar of every single invoice, and now with them going into administration it is going to cost us millions more to get the work completed."

But a stop-work outside the site today suggested that money wasn't filtering through to the workers who are still building the block.

The president of Construction Forestry Mining and Energy Union NSW Construction Rita Mallia said that builder Steve Nolan Constructions had gone into administration owing $30 million.

The collapse affects five building sites in Lindfield, St Leonards, Roseville and Gordon, where apartment blocks are being constructed for developer, the Ralan Group.

Ms Mallia said that the company's collapse could have a domino effect on the subcontractors involved with some of the small family businesses owed as much as $2 million.

Steve Nolan Constructions Pty Ltd donated $200,000 to the Liberal Party of Australia in 2012-13 - $150,000 to its NSW Division and $50,000 to the national body.

In 2013-14 this company also donated $50,000 to The Free Enterprise Foundation which is a political entity of the Liberal and National parties.

CFMEU NSW Branch:

“This problem has now come to Premier O’Farrell’s doorstep,” says Mallia.

“A year after Bruce Collins QC made his recommendations on how to protect workers and sub-contractors caught in company collapses, the Government has yet to act on any major recommendations.

“Now we know why – the builders and developers who don’t want this legislation passed are lining the coffers of the Liberal Party.”

The collapse affects about 200 workers and their families who are also set to lose wages and entitlements as a result of Nolan’s failure to pay.

Steve Nolan Constructions had failed to pay sub-contractors on the sites for the past few months.

She says the Ralan Group is telling subbies to write off the money they are owed and they will pay them to just finish the job.

“It is morally corrupt for the Ralan Group to ask these family-owned businesses take a $2 million loss while it is sitting pretty to reap millions in profit from Sydney’s housing boom.

Mallia says the CFMEU is calling on the Ralan Group to pay the debts that are owed and local MP, Premier Barry O’Farrell, to step in and help these small business owners.

Anthony Maroun of the Earthworks Group is owed $2.5 million.

He says he is now working with accountants to keep his company going and is lucky he has work on other jobs to give him the cash flow to stay afloat.

“I was working up until last week and they kept promising the money was coming and in good faith I kept working,” he says.

“We definitely can’t write off $2.4 million.”

Twitter is now playing host to this image:

People living on the NSW Northern Rivers will of course remember the long history of the Ramsey network of companies operating in the region and, the lacklustre response of the National Party to problems facing employees.