AWU SCANDAL : It's now about, who we can blame to save our own arse: Bill (Cover up) Shorton, says AWU fund 'inappropriate, unauthorised'

WORKPLACE Relations Minister Bill Shorten has described the association Julia Gillard helped set up in the 1990s for her then boyfriend, union official Bruce Wilson, as "inappropriate" and "unauthorised".

Mr Shorten, who became national secretary of the Australian Workers Union long after the fraud scandal had been exposed at the union, said last night he was satisfied with the Prime Minister's explanations on the matter.

But he told the ABC's Lateline the association that Ms Gillard helped to set up for Mr Wilson, her client when she was a lawyer for Slater & Gordon, was "unauthorised by the union" and "inappropriate . . . as far as I can tell". "It was out of bounds," he said.

Ms Gillard has admitted to providing legal advice for the creation of the AWU Workplace Reform Association, which Mr Wilson later used to defraud the union of hundreds of thousands of dollars. The Prime Minister has repeatedly denied wrongdoing and says she knew nothing about the operation of the association, which she has described as a "slush fund" for the re-election of union officials.

The federal secretary of the Australian Licensed Aircraft Engineer's Association Steve Purvinas last night warned that Ms Gillard was becoming a problem for the union movement and the Labor Party.

"Julia is going to become a liability to the labour movement if allegations continue to fly like they are," he said on Sky News's View Point program.

Earlier, ACTU president Ged Kearney said a draft report to improve union governance would go before the national executive at the beginning of next month.

Ms Kearney told the National Press Club in Canberra the report would be used to set ground rules, educate and provide assistance to thwart fraudulent conduct, but she stopped short of providing an assurance it would help wipe out corrupt conduct altogether.

The panel compiling the governance report, headed by former judge Rod Madgwick, is poised to recommend improvements to union financial transparency, accountability disclosure and grievance handling.

While the ACTU has no formal authority to change the rules of individual unions, Ms Kearney said the report could be used to establish "ground rules".

Don't fall for Bill's bogus claims........... 

Shorten says AWU fund 'inappropriate, unauthorised' | The Australian: