Witnesses quizzed over AWU scandal

Julie Bishop questions Julia Gillard in parliament over the AWU affair. Picture: Gary Ramage Source: The Australian

VICTORIAN police have begun interviewing key witnesses as part of an investigation into the Australian Workers Union scandal.

Fraud squad detectives have contacted at least two people, including retired Greek-born builder Kon Spyridis, who said he spoke with police on Monday in relation to payments he'd received from the AWU in the mid-1990s.

Police have also contacted former Slater & Gordon employee Olive Brosnahan, who in 1993 did the conveyancing on the Melbourne property at the centre of the affair.

The move by police came as Prime Minister Julia Gillard yesterday declined, amid multiple questions from the Opposition, to give a direct answer when asked if she had written to WA's Corporate Affairs Commission vouching for the bonafides of the association 20 years ago.

Ms Gillard provided legal advice for the incorporation of the AWU Workplace Reform Association, but has denied any knowledge of its operations.

She labelled Deputy Opposition Leader Julie Bishop - who is under fire after admitting to meeting key witness Ralph Blewitt - an embarrassment before telling Opposition Leader Tony Abbott, who has remained silent on the affair in parliament this week, that she would answer if he asked the question.

"Get up and ask it yourself, then I will answer it," she thundered at her political rival.

Liberal Senator George Brandis used parliamentary privilege to call Ms Gillard's account of her actions "implausible."

A spokeswoman for Ms Gillard said Victorian police had not approached the Prime Minister.

Victorian police are investigating whether criminal action took place during 1992 to 1995 in relation to a series of unauthorised union accounts. The Kerr St Fitzroy home, which was purchased for $230,000, was partly financed with around $67,000 from the AWU Workplace Reform Association.

The Opposition has questioned the Prime Minister's involvement in helping to purchase the property, although Ms Gillard insists she has done nothing wrong and that her role was limited to witnessing a power of attorney from Mr Blewitt, a former AWU official and self-confessed "bagman".

That document gave Ms Gillard's then boyfriend, Bruce Wilson, authority to secure a loan and purchase the property, which was later sold in 1996.

Mr Spyridis told News Limited that police had quizzed him over work he had done for the AWU in the mid-1990s. In August, the retired builder broke a 17-year silence to clear Prime Minister Julia Gillard of allegations that funds from the AWU "slush" had helped to pay for renovations on her Melbourne home.

Yesterday, Mr Spyridis denied he had ever approached former AWUVictorian State Secretary Bob Smith seeking payment for unpaid work.

"I don't remember Bob Smith," he said.

Mr Smith declined to comment on whether he had been contacted by the fraud squad.

It is understood Peter Gordon who was one of two Slater and Gordon senior staff who interviewed Ms Gillard around the time she left the firm over the AWU association affair has not been contacted by police.

Victoria police said the fraud and extortion squad "is currently assessing a file which relates to the alleged misappropriation of funds from a Union. Victoria Police does not confirm who may or may not be under investigation or providing statements."

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