Former Health Services Union boss Kathy Jackson allegedly withdrew “vast wads” of cash to avoid being caught misusing its funds, a court has heard.

The union is suing Jackson, alleging she acted outside her authority as national secretary and spent $660,000 of members’ funds on personal expenses.

Barrister Mark Irving, appearing for the union, alleged Jackson cashed cheques, distributed some money among branch committee of management members and pocketed the rest.



He told the federal court Jackson was trying to avoid accountability for “straight out” misappropriation.



“There’s only one rational reason for withdrawing such vast wads of cash,” he told a civil trial in Melbourne, where the HSU is suing Jackson for more than $2.5m despite her bankruptcy declaration.



The court has heard allegations she set up the national health development account in 2003 and used it to hold union funds entirely under her control.

Jackson has not appeared in court for the trial, instead writing to say she could not afford to be represented and that the matter was now a claim against her estate.



She said she did not believe she was entitled to further participate in the proceedings, and did not intend to do so.



Irving on Wednesday said Jackson withdrew cash to distribute among branch committee of management members at meetings – an honorarium.



He alleged Jackson withdrew more than was given to these members, and pocketed the excess.



Some withdrawals were allegedly made at times that didn’t align with meetings.



“There’s no reason one would keep $10,000 cash in one’s pocket for three weeks,” Irving said.



He also said inaccurate entries in a general ledger were meant to disguise the true nature of Jackson’s spending.



“They created a misleading financial picture of what the cash was being used for,” Irving told the court.



The trial continues.