Five thousand …

Interesting news in The Australian this morning and, in case you can’t reach beyond the pay wall, here it is …

A UNION employee who was concerned about wrongdoing told the national head of the Australian Workers Union in June 1996 that he deposited about $5000 cash into Julia Gillard’s bank account at the request of her then boyfriend Bruce Wilson.

The disclosure by Wayne Hem forms part of a contemporaneous and confidential 150-plus-page diary that was kept by the then AWU joint national secretary, Ian Cambridge, now a Fair Work Australia commissioner…

In a statutory declaration signed in Melbourne on Sunday and in lengthy interviews with The Australian over the past fortnight, Mr Hem declared he had deposited the money after being given the account details of Ms Gillard along with a wad of $100 and $50 notes by Mr Wilson, an official in the AWU’s Victorian branch.

Ms Gillard, then a salaried partner at law firm Slater & Gordon, was Mr Wilson’s girlfriend and solicitor at the time.

Ms Gillard had provided legal advice in 1992 that helped Mr Wilson and his union ally, Ralph Blewitt, set up a slush fund – the AWU Workplace Reform Association – which the two men used in the ensuing years to issue bogus invoices and fraudulently receive hundreds of thousands of dollars.

The Prime Minister issued a short statement through spokesman Sean Kelly.

“As The Australian is well aware, the Prime Minister has made clear on numerous occasions that she was not involved in any wrongdoing,” Mr Kelly said.

“I also note that despite repeatedly being asked to do so, The Australian has been unable to substantiate any allegations of wrongdoing.”

But remember …

But it is vital to highlight what the Hem entry does not say – and what Hem does not say now.

He does not say Gillard ever wanted her union boss boyfriend to ask Hem to put about $5000 into her account in mid 1995.

Nor does Hem say that she knew she was receiving a financial benefit. There is no evidence of that and there could be several innocent explanations for the payment. We do know, however, that Hem was concerned about dishonesty by Wilson and this prompted him to blow the whistle.

On Diaries

The disclosure by Hem to Cambridge [in 1996 about the deposit] came eight months after concerns were first raised publicly by a Liberal minister, Phil Gude, in Victoria’s parliament, about Gillard allegedly getting a benefit in relation to the renovation of her house. Gude wanted a probe into what he was told at the time. He has insisted union officials had been to see him with evidence that Gillard was a beneficiary of union money.

Gude told the Victorian parliament in October 1995 that Gillard had been forced to leave her law firm; that she was directly linked to the misappropriation of union funds; that she had benefited from renovations to her own house; and that she had to pay money back to the AWU so that she and Wilson could “cover their tracks”.

Gude made his claims a short time after Gillard’s confidential tape-recorded interview on September 11, 1995, with Peter Gordon – and her abrupt departure from the firm. Its partners had lost trust and confidence in her.

Gillard told The Australian immediately after she was accused in the Victorian parliament in 1995: “Every allegation raised about me is absolutely untrue; there is not a shred of truth in any of it.”

On Hem …

BANK documents show the man who claims he was told to pay about $5000 into Julia Gillard’s bank account was entrusted to deposit more than $100,000 in cheques into an Australian Workers Union secret slush fund.

Wayne Hem, 58, told The Australian in interviews and in a statutory declaration that he was given the cheques in mid-1995 and told to put them into “a bank account for something I recall as the AWU Welfare Fund”.

He said that Ms Gillard’s then boyfriend Bruce Wilson, the corrupt branch head of the AWU, handed him the cheques on several occasions and told him to go to the Commonwealth Bank to make the deposits…

In a September 1996 affidavit filed in the Industrial Relations Court, the AWU’s national head Mr Cambridge named the Victorian Welfare slush fund account as one “used to hold and/or launder union funds, as a step in the conversion of those funds to unauthorised, invalid, irregular and possibly illegal uses”.

Mr Cambridge stated in his affidavit that the account was unknown to other union officials, and involved payments totalling $234,000.

Without principle …

The Australian, interjections and emphasis mine …

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, but, 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.