Coalition says police should probe union scandal, but Labor rejects claims as 'ancient stuff'

POLICE should investigate claims by a former union official about his role in a financial scandal linked to a former boyfriend of Julia Gillard, the Coalition says.

Ralph Blewitt

THE Coalition says police should investigate claims by Ralph Blewitt, a former AWU official and alleged bagman for a financial scandal linked to the then boyfriend of Julia Gillard, who wants to give evidence about his role in the scam and the conduct of others.

Opposition frontbencher Joe Hockey said today the matter should be left to Victorian criminal authorities.

“Look, someone has made allegations, they've been reported and they should be investigated,” Mr Hockey told 3AW's Neil Mitchell.

“I think everyone is entitled to the same level of scrutiny from the police no matter what position they hold,” he said, referring to Ms Gillard's potential knowledge of the scam when she was conducting legal work for the Australian Workers' Union.

Ms Gillard has strenuously denied any allegation of wrongdoing.

“If new evidence emerges obviously it changes the investigations,” Mr Hockey said.

Opposition Leader Tony Abbott today also said the matter should be left to relevant authorities and would not weigh into the fresh revelations.

“That would be a matter for criminal justice authorities to determine,” Mr Abbott said.

The Australian revealed today that Mr Blewitt was prepared to give evidence to police and prosecutors about his role if he was indemnified against criminal prosecution.

The current leadership of the Australian Workers Union said today the allegations of misappropriation of union funds involving Bruce Wilson, Ms Gillard's former boyfriend, and Mr Blewitt related to a period of time between 1992 and 1995.

“When the allegations came to light, the AWU provided all available information to the police in both Western Australian and Victoria,” an AWU spokesman said in a written statement

“Authorities in both States decided not to prosecute in the relation to the allegations. The people involved in the allegations were forced out of the union between 1993 and 1995.

“The allegations highlighted the need for all unions to be utterly vigilant in their financial management. The AWU learned a hard lesson, and learnt it the hard way. The AWU now is utterly professional in the way it audits its financial accounts. Unions must uphold the highest standards of financial management and transparency.”

Workplace Relations Minister and former AWU national secretary Bill Shorten said the allegations by Mr Blewitt were “ancient stuff”.

He said the matter had been relentlessly pursued by the union and referred to police in two states and the director of public prosecutions, who had decided against prosecuting.

“What I know is that these allegations refer to a period of time before my time in the AWU,” Mr Shorten said on Melbourne radio this morning.

“What I do know, though, and what I can say is that the union identified the problem, these allegations, at that time, about 18 years ago.

“The union took the matter to the police, the union got these people removed and they were relentless in terms of chasing these matters down at that time.”

Mr Shorten said he did not know how much money was involved.

He said the issue of whether Mr Blewitt should be given indemnity in return for information about the affair was a matter for police.

“I know at the time my predecessors certainly did take all the material to West Australian and Victorian police and what I understand is those authorities chose not to take the matter any further, not to prosecute.”

He said there was “no place for dodgy deals in Australian unions or any other part of Australian business life”.

Asked by 3AWs Neil Mitchell about the actions of Ms Gillard, who did legal work associated with the establishment of the so-called AWU Workplace Reform Association, which is at the centre of the allegations, Mr Shorten replied, “It's ancient stuff. I believe so, but a lot of these matters happened even before I had started as an organiser.”

Ms Gillard admitted in 2007 that she may have been naïve during that period. Asked whether she was, Mr Shorten replied: “She says that and I believe her. I believe what she says.”

Asked whether the matter should be allowed to rest, Mr Shorten said he did not know everything “which this chap (Blewitt) says he knows, but I do know this matter has been litigated over the past 18 years extensively.”

He said he had never met Mr Blewitt.

Acting Prime Minister Wayne Swan said he believed there was no reason to rehash the scandal.

“I don't think there is anything in this issue,” Mr Swan said.

“It has been raised in the past and it has gone nowhere. I am not interested in it and I don't think it has any significant implications.”