Julie Bishop insists Julia Gillard clarify claims to house over fund

THE Coalition has demanded Julia Gillard offer a full parliamentary explanation over her involvement in a union slush fund.

THE Coalition has demanded Julia Gillard offer a full parliamentary explanation over her involvement in a union slush fund she helped create in 1992 for her then boyfriend, union boss Bruce Wilson, to clarify whether she may have misled parliament.

The opposition is also pressing the Prime Minister for the statement to address new questions on her knowledge of the slush fund, after declaring on August 23 that she had no further involvement after providing advice on its establishment as a partner at law firm Slater & Gordon.

"I am seeking through the parliament a full and frank explanation from the Prime Minister on the very serious issue of her involvement in a union slush fund which allegedly defrauded the Australian Workers Union of hundreds of thousands of dollars," Julie Bishop told The Australian yesterday.

"I am challenging her recent version of events, by referring to documents that have not been previously put to her by a journalist about her involvement in this large slush fund and her knowledge of its operation."

Ms Gillard has acknowledged helping to set up the AWU Workplace Reform Association, which she has classified as a "slush fund" for the re-election of union officials, but has repeatedly denied knowledge of its operations. It was used to defraud hundreds of thousands of dollars from the Australian Workers Union.

On Thursday, the Deputy Opposition Leader asked Ms Gillard in parliament why she did not "report the fraud" and cited former High Court judge Michael Kirby, saying it was a citizen's duty to report serious crimes to the police.

Ms Gillard replied: "By the time the matters she refers to came to my attention, they were already the subject of inquiry and investigation."

But affidavit material shows the national leadership of the AWU did not know about the existence of the slush fund until the Commonwealth Bank told the union of related bank accounts in April 1996.

This was eight months after Ms Gillard had become aware, though an internal investigation by Slater & Gordon, of fraud concerns involving her client and boyfriend, Mr Wilson.

During the investigation, Ms Gillard was questioned by senior partner Peter Gordon.

She was asked about the slush fund; Mr Wilson and his fellow official and AWU bagman Ralph Blewitt; Mr Blewitt's purchase of a $230,000 terrace house in Melbourne's Fitzroy in 1993; and renovations at Ms Gillard's house.

A Victorian Police Fraud Squad investigation requested by the AWU leadership in September 1995 was undermined because the union and police were unaware of the slush fund, with Ms Gillard and Slater & Gordon failing to disclose its existence to the union or authorities.

Opposition workplace relations spokesman Eric Abetz said yesterday there was a full year between when Ms Gillard was interviewed by Slater & Gordon and when the AWU demanded its fraud probe of September 1996.

In the intervening period, the two union officials sold the Fitzroy property bought with slush fund money and kept the proceeds of about $80,000.

"The assertion that the Prime Minister made in the parliament does not seem to gel with the chronology on the public record," Senator Abetz told the Ten Network's The Bolt Report. "Having said that, I'm willing to give the Prime Minister the benefit if she provides a full and frank explanation to the Australian people."

Ms Gillard has repeatedly denied wrongdoing. A spokesman for the Prime Minister yesterday declined to comment and referred The Australian to Ms Gillard's "many statements on the public record on this matter".

The Opposition is demanding she answer further questions after Ms Bishop asked Ms Gillard last week why she signed a power of attorney in February 1993 giving Mr Wilson legal control over the Fitzroy property transaction.

The power of attorney was used to help secure a mortgage of $150,000 borrowed through Slater & Gordon.