A cache of internal documents has laid bare the full financial catastrophe inside the remnants of the disgraced Health Services Union’s former East branch.

The summary of the true state of the HSU’s books, compiled by lawyers Slater & Gordon and accountants VJ Ryan & Co, and obtained by Crikey, shows that in the two-year period between the 2010 merger of the NSW, Victorian No. 1 and Victorian No. 3 branches and June 30 this year, over $7 million was wiped from the union’s asset base – from $8.7 million to just $1.6 million.