Police to investigate whether Australian lawmaker paid for prostitutes with official credit card

Did he or didn't he — or did someone else use politician Craig Thomson's work credit card to pay for prostitutes, as he is claiming? 

The scandal that has gnawed at Australia's ruling Labor Party — hanging by a one-seat-majority — resurfaced Wednesday with the Victorian police fraud squad announcing that it would investigate the lawmaker's behavior while head of the country's powerful Health Services Union from 2002 to 2007.

If found guilty of a criminal offense, Thomson — elected to parliament in 2007 — would be forced to leave parliament, prompting a by-election that could bring down Julia Gillard's already shaky government.

It's been alleged Thomson's HSU credit card was used to pay for prostitutes and lavish meals and to obtain $100,000 in cash withdrawals.

According to Australia's ABC news, Thomson has claimed that someone else used his credit card and forged his signature after statements showed the card was used to hire escorts in Sydney. 

The NSW police had been investigating the claims, but in September said they'd found no evidence of any offense under NSW law.

Claiming vindication, Thomson said at the time, "I have always rejected claims of wrongdoing in these matters," the Australian reports.

The NSW fraud squad did, however, send the file to its southern counterpart, as the HSU's financial controls are based in Victoria. Thomson also spent time there as the union's national secretary, the Australian reports.

A Victorian Police spokeswoman told the Australian: "We have spoken to the fraud squad and we can now confirm an investigation is under way."