Alison Caldwell reported this story on Wednesday, October 5, 2011 08:06:00

TONY EASTLEY: Federal Labor MP Craig Thomson is being investigated by the Victoria Police fraud squad over allegations he misused his Health Services Union credit card.



At the same time the strike force formed by New South Wales police is continuing with its investigation into claims of inappropriate practices at the union.



Craig Thomson claims someone else used his credit card and forged his signature, using it to pay for among other things prostitutes and air travel.



Alison Caldwell reports.



ALISON CALDWELL: A spokeswoman for Victoria Police has confirmed they received a file from New South Wales Police which has been assessed, and that an investigation has begun into allegations Labor MP Craig Thomson misused his HSU credit card when he was the union's national secretary based in Melbourne.



The investigation centres on a 120-page document supplied by the Health Services Union.



The fraud squad is investigating the allegations.



Last month police in New South Wales said they wouldn't proceed with an investigation because there was no evidence to warrant one and referred the matter to Victoria Police.



The police investigation was sparked by the Opposition's Attorney General Senator George Brandis.



GEORGE BRANDIS: No, I'm not surprised at all. As I said when I initially referred the matter to the New South Wales Police about six weeks ago now, I expected that the police investigation would take its natural course and that natural course included references by them to relevant interstate police forces.



Obviously the internal financial transactions of the HSU are a matter that is obscure to the public and is something that only a thorough police investigation was ever able- ever going to be able to determine.



ALISON CALDWELL: Considering all the things that are going on in the world and in the country today - all the challenges we face - why are you still pressing ahead with your concerns about this matter?



GEORGE BRANDIS: Well, I'm not really pressing ahead with them beyond having initiated the process, and it's a matter of legitimate public concern that there are these serious allegations against a Member of Parliament.



As the shadow attorney-general in particular, it's part of my responsibility to ensure that the Government and all its members have conducted themselves in a lawful fashion, and if there is a serious reason to suspect criminality against a member of the Government then of course it's a matter that ought to be raised.



It is a legal question but it arises in a political context.



ALISON CALDWELL: It's alleged Craig Thomson used the credit card to spend $100,000 on escorts, cash withdrawals and plane tickets while he was the national secretary of the Health Services Union based in Melbourne.



Craig Thomson has repeatedly rejected the claims.



Two weeks ago New South Wales Police formed Strike Force Carnarvon to investigate claims of inappropriate practices at the Health Services Union, allegedly involving Mr Thomson and the union's national president Michael Williamson.



Both have denied the allegations.



Mr Williamson stood down from the HSU and from his role as national vice-president of the ALP.



Craig Thomson is the Member for Dobell on the New South Wales Central Coast. If he was forced to resign it would trigger a by-election in his seat.



TONY EASTLEY: Alison Caldwell reporting.