Australian member of parliament Craig Thomson is accused in sex scandal inquiry of paying for sex with prostitues using his trade union credit card.

Australian police are investigating claims that a politician from the governing Labor Party allegedly misused his trade union card to pay for sex with prostitutes. Meanwhile a new evidence was introduced and presented to police by an opposition politician.

The accusation, if proven, could bring down the country’s minority government, headed by Julia Gillard, the prime minister. Julia Gillard could be forced to call an election if charges against Craig Thomson are proven. Police informed they were examining new evidence against Craig Thomson.

Australian MP : Sex Scandal expected to lead to dawnfall of Labor Party

Craig Thomson, on the other hand has denied any wrongdoing, and has already stated an unnamed friend forged his signature to use the credit card. A conviction for theft or fraud could mark the bitter end of Julia Gillard’s minority government, which has a working majority of just one seat.

Although Prime Minister Julia Gillard has expressed her “full confidence” in Craig Thomson, and expressed any probe into his conduct should be allowed to run its course, police informed in a statement “This correspondence has now been referred for internal assessment to determine whether a criminal offence has occurred.”

Governing Labor Party Battles Unpopularity and Sex Scandal Claims

It is alleged that Australian MP Craig Thomson paid for escort services and drew out more than $A100,000 ($104,000; £63,000) in cash on a card issued by the Health Services Union during his employment there in 2003 to 2005 an act that Craig Thomson, who entered parliament after the 2007 election, has claimed that other union officials had access to that credit card, and denies any wrongdoing. It has since been reported that the New South Wales Labor party helped Craig Thomson with $A90,000 towards his legal bills. Bankruptcy disqualifies people from sitting in parliament.

The consensus states that given the Gillard government’s deep unpopularity, the Liberals would be expected to win a by-election. If Labor Party loses that seat, of course, it also loses its parliamentary majority. The opposition has hammered labour on the issue since the legal fees revelation, hoping to force Gillard to sack the MP or see Thomson himself resign, destabilising a government that is less than one year old.