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October 2012

The AWU Scandal - reader Corey D's scoop - deregistration of the AWU WRA

My apologies to Corey D who sent me a couple of emails the night before last with details of the de-registration of the dodgy, sham, fictional - yet strangely highly profitable - slush fund set up by one Julia Eileen Gillard for the boyfriend's use-as-you-will ask-no-questions but I-did-nothing-wrong re-election and safe-workplaces purposes.

I thank Corey for the research.   When you walk away from a rumbled slush fund that has ceased to be a conduit for ill-gotten gains, I suspect that the last few days are probably not allocated to the submission of paper-work of a tidy and complete nature so as to advise properly taxation, corporate affairs and investigating authorities as to the whole of the information that might be of assistance in their endeavours to bring you to account.

Thus I think the AWU-WRA languished amongst the corporate leviathans of its day, the Quintex's, the Ansetts, the Laurie Connells and the other friends it found at the bottom-of-the-habour until someone twigged that safe work places somehow managed to survive the cessation of workplace reform activities spearheaded by the innovations produced at the AWU-WRA.

It might be possible (now that the date of its passing has been discovered by talented historians) that a public holiday ought to be struck in commemoration of the reforms it pioneered in the way we labour -  made by possible only by the early career of a genourous and community-spirited  Prime Minister, who did it all for free and was so self-less as to ensure that no file, no record and no public confirmation was available to record her magnaminity.

All Hail the Leader!

 

Updated



My letter to Slater and Gordon has been answered today

 

Yesterday I wrote this letter to the Slater and Gordon Managing Director

 

Dear Mr Grech,
I note from the unchallenged record of interview conducted between Geoff Shaw the then GM, Peter Gordon then senior partner and Julia Gillard departing solicitor on 11 September, 1995 as reported in The Australian newspaper, that a file containing documents related to the formation and incorporation of the Australian Workers' Union Workplace Reform Association Inc was present in the offices of Slater and Gordon on that day.
You would be aware that should any serious indictable offences be disclosed in the creation or use of that entity, no statutory period that limits prosecutions would apply.
I would have thought that your then professional indemnity insurers may have taken an interest in the documents then in the custody and control of Slater and Gordon, given the potential losses faced by your client the AWU through the AWU-WRA.
I have a few questions.
1. Did Slater and Gordon report its discovery of its unconventional work, or its discovery of Ms Gillard's unconventional work in association with the establishment of the AWU-WRA to its professional indemnity insurers or any other body?
2. What steps did you take to safeguard the contents of the AWU-WRA file given that a police investigation was reasonably anticipated - where was the file last stored and do you include theft of the file as a possibility?
3.  Peter Gordon was there present on 11 September, 1995 when the file was also present in your offices.   Have you spoken to him about the matter recently or invited him to make a statement about the disposition of the file.  If not why?
4. Why didn't Slater and Gordon, when told by Ms Gillard of the union slush fund (in the context of Bruce Wilson then being investigated for fraud) advise its client the AWU about the Association's existence.
Thanks for that, I'll post this to www.michaelsmithnews.com
PS,You might also be interested in my report of possible serious crimes to the Chief Commissioner of Police involving the creation of a Specific Power of Attorney ostensibly by Slater and Gordon on 4 February, 1993.  Details on my blog, including the Victoria Police acceptance and now assessment of the report.
Kind regards,
Michael Smith 
I have today received this response from Slater and Gordon.   I don't think they read the questions.
Thank you for your enquiry. We direct you to the statement we made recently, a copy of which is attached by way of  courtesy.  We do not intend to make any further comment.
I hate it when people pretend to answer questions by sending something - but they've made no effort to answer the questions I put to them.    I was serious, these are serious matters that the firm has an obligation to give answers on.

The AWU Scandal - Victoria Police write-off the 1995 complaint - before the discovery of AWU-WRA

I have now reviewed the partial information released by Victoria Police about its investigation into Wilson and The AWU Scandal in 1995.

The file released by the police does not include witness statements and it's heavily redacted.  It's therefore difficult to follow much of the investigating officer's logic leading to a conclusion that no offences were detected.

Keep in mind that this investigation was concluded before the discovery of the Australian Workers' Union Workplace Reform Association.   It also appears that Wilson was not interviewed by police.

On the material available in the file, it appears that the investigating officers concentrated on the funds dispersed from AWU Members Welfare Association No 1 Account.   Here is a copy of the cash withdrawals from that account by Wilson.

Awu members welfare withdrawals

Here is the investigating officer's report to his superiors at the conclusion of his investigation on 30 May, 1996.

Download Vic POlice write off matter - May 1995

 

Harry Nowicki was the applicant for this file.   He has reviewed it and today has written to Victoria Police with these comments.

Download Redacted harry re vic police foi

I would reiterate to Victoria Police that there are changed circumstances since their brief investigation.

Ralph Blewitt has made certain admissions about serious indictable offences in Victoria.   He has stated that he will be fully co-operative with police in return for immunity from prosecution for the offences he has committed.  

Since Victoria Police's initial investigation, the evidence of the purchase of 1/85 Kerr Street Fitzroy, the apparently back-dated and falsely created Power of Attorney and the discovery of the Australian Workers' Union Workplace Reform Association have come to light.

I'll let you know about the response to Harry's letter.


Synopsis of The AWU Scandal - John Lourens

This is the version as amended by your comments.   Thanks so much to Dr John Lourens for your expertise in putting this together.

This document has been prepared in good faith relying on the sworn evidence in the affidavit of Ian Walter Cambridge sworn 19 September 1996 in Ludwig v Harrison and Ors, 2082/96 in the Australian Industrial Relations Court.

Any errors or omissions are unintentional.   This synopsis is not presented as having evidentiary value, rather it's a financial accountant's statement provided as a guide to cash flows during the scandal.

Synopsis of the AWU Scandal_001
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Synopsis of the AWU Scandal_007


UPDATED 13 February - 2013 - The AWU Scandal - Ian Cambridge calls for a Royal Commission of Enquiry into his union

UPDATED - We need this now more than ever.   Imagine Ian Cambridge's shock at the discovery 4 months later of the AWU-Workplace Reform Association.   Then try to imagine his shock last year when Julia Gillard's admissions made in September, 1995 (4 months before this submission) were made public!

Continue reading "UPDATED 13 February - 2013 - The AWU Scandal - Ian Cambridge calls for a Royal Commission of Enquiry into his union" »


Ethics. Morality. Principles. Caring about others. No, not pretending, I mean really care.

As Sir Gerard Brennan AC noted in an address to the Queensland Bar Association on 3 May 1992:

The first, and perhaps the most important, thing to be said about ethics is that they cannot be reduced to rules. Ethics are not what the barrister knows he or she should do: ethics are what the barrister does. They are not so much learnt as lived. Ethics are the hallmark of a profession, imposing obligations more exacting than any imposed by law and incapable of adequate enforcement by legal process. If ethics were reduced merely to rules, a spiritless compliance would soon be replaced by skilful evasion. There is no really effective forum for their enforcement save individual acceptance and peer expectation. However, among those who see themselves as members of a profession, peer expectation is sufficient to maintain the profession’s ethical code. Ethics give practical expression to the purpose for which a profession exists, so a member who repudiates the ethical code in effect repudiates members of the profession. It follows that if we are to gain an understanding of the ethics of the Bar, we must first ask ourselves whether the Bar is truly a profession and as certain the purpose for which it exists. Only then can we see whether and how the ethics of the Bar express that purpose.

 

http://ethics.qls.com.au/content/ascr.html


We should learn from the way that Miss Gillard slipped through the net

You know there are some really great thinkers who write in here - well Paul is a lawyer who writes to me a fair bit and he always makes me sit up and take notice.   I've just re-read the note below from Paul about partnerships.  Paul's note is about the legal and ethical obligations on members of a legal partnership.  But when you think about it, partnerships are such a natural human relationship.   In the police I was generally paired up with a partner, someone I'd literally entrust my life to.

Marriage, business - even small projects; being able to relate to each other and to recognise the importance of the give and take in partnerships is a key part of being a fully functional person.   We must learn from the tragedy that someone so lacking in the awareness or care about her obligations to her partners could now be responsible for the laws that affect all of us.

Michael,
One of the more extraordinary admissions in the draft statement of Peter Gordon published some time ago in The Australian was that the partners of Slater & Gordon considered that Julia Gillard and her then unnamed colleague had in certain respects not acted with the "utmost good faith" towards their fellow partners. 
This is a most important principle of partnership law, which is applicable in any partnership, not just a firm of solicitors. To refresh my memory on the significance of the principle I found this interesting description of the principle on the website of Russell Jones & Walker which is a UK firm of solicitors which ironically has apparently only very recently become a part of Slater & Gordon! (see both links below)
What seems to have been glossed over in the commentary about the circumstances of Julia Gillard's departure from S&G is just how seriously a breach of this utmost good faith principle is regarded as a matter of partnership law.
Regards
Paul

http://www.rjw.co.uk/legal-services/business-services/partnerships/duties-of-partners-to-each-other-and-to-third-parties/#axzz24Fi3uqU7

 


The AWU Scandal - If Cambridge isn't stopped we're all history

I have called in favours all over Melbourne and throughout the AWU trying to get a copy of this letter.

I've been unable to locate one.   If you can help I'd be in your debt.

I take it on good faith that the member for Glen Waverley Mr Smith had a copy of the letter in his hand as he read this into the Hansard.   So what you'll read is what the Hansard reporter wrote down as Mr Smith read out the letter, that's why it's a little disjointed.

I think this letter is one of the most  important pieces on the historical register about unions and unionism in Australia.  I'll post Cambridge's letter to the Industrial Relations Minister Laurie Brereton soon.  For now, here's the reaction to it in the form of this letter from the Victorian Branch Secretary Bob Smith to Steve Harrison, a Joint National Secretary.

Handsard re cambridge snapshot

 

Mr SMITH (Glen Waverley) -- I refer to a letter addressed to the joint national secretary of the AWU, Steve Harrison, which states:

Dear Steve,
Further to our telephone discussion this morning, I propose the following resolution to be put to national executive next month.
As we have discussed, you know as well as I do that if Cambridge is not stopped we are all history. I have spoken to Bill Kelty and Jennie George, and they are supportive of this course of action. Both you and I can work the phones before the national executive meeting to make sure we have the numbers before this motion is put. I have already spoken to a number of national executive and they are very nervous to say the least. Please ring when you have considered my proposal.
It goes on to a preamble:
1. That on 23 January 1996, joint national secretary Ian Cambridge wrote to the federal minister ... calling for the establishment of a royal commission or judicial inquiry ...
It further states that Cambridge wrote that letter without approval of senior officers, and the motion is that:
3. This national executive determines that the membership is entitled to have this matter dealt with expeditiously. Consequently, national executive requests the ACTU to appoint an independent person ...
(a) the ... allegations raised by I. Cambridge
(b) to investigate all allegations relating to any branch, activity ...
(c) to investigate any matters ...
By the way, there was neither a judicial inquiry nor a royal commission. Cambridge was appointed to the New South Wales Industrial Relations Court. I call for a full, open judicial inquiry. The other addressees on the letter were Bill Shorten, Terry Muscat, Graham Ray and Frank Leo.
The letter was written by Robert F. Smith, branch secretary.
The SPEAKER -- Order! The honourable member's time has expired.

A few points jump out at me beyond the obvious "we're all history" if a Royal Commission was appointed.   You have to wonder what else was then known of which would be uncovered by a commission of enquiry.

The member for Glen Waverley certainly drew a causative link between the cessation of agitation for an enquiry and Cambridge's appointment to the bench by the NSW Government (Carr).

The response to Cambridge's call from Bob Smith, and according to Bob Smith from Jennie George and Bill Kelty, was to have the ACTU appoint a person to enquire.   Haven't we seen enough of that in-house, cosy enquiry of late?


Slater and Gordon - some more public response

Some free advice for Slater and Gordon.   I have received maybe a couple of dozen notes today from people who have seen the Slater and Gordon email bulletin.

Memo to Slater and Gordon marketing people - you've hit a nerve with your promotion of the brand attribute "Australia's most trusted".   

This note is from a policeman whom I know through correspondence on the blog.  He sent the original to Andrew Grech the MD at Slater and Gordon earlier today.  I just love reading these sorts of insights into how other people feel about issues that I feel strongly about too.

 

Dear Mr Grech
I feel I must write to disagree with your claim that Slater & Gordon is Australia's most trusted law firm. Indeed, I feel at present that its reputation is suffering immensly in the eyes of the Australian public, owing to the way it is now handling the AWU Scandal, dating back to the early 1990's.
We have seen how the interests of your client, the AWU, were supplanted by the personal interests of a former Partner's lover, and how members money was funnelled into a 'slush fund', set up by her, and used for property purchases and other expenditure, unrelated to the AWU.
Then, upon uncovering this dubious saga, it appears that you failed in your duty to inform the appropriate authorities of the existence of the AWU WRA, and assets such as a house, purchased from it. Had you done so, the funds from the subsequent sale of that property could have been returned to your client, the AWU, and its members.
Since that point, we have seen your company defend this former partner by any means necessary, even claiming legal privelage to prevent release of documents, despite Mr Blewitt rescinding his right to that protection. 
I now learn today that you have 'lost' the unofficial file which was opened on this matter, and discovered in the office of your former Partner. I am sure you can imagine how this looks to the general public?
I wish to take this opportunity Mr Grech, to remind you of your obligations to your shareholders, and their interests. Also, to the interests of your former clients, the AWU, its members, and Ralph Blewitt, to whom you advanced a mortgage on the back of a questionable Power of Attorney, drawn up and witnessed by the same Partner. It is Mr Blewitt's claim that he neither signed the document in the presence of the witness, nor knew of the mortgage until this year.
I also wish to remind you of your greater obligations to the Australian public and our great democracy, for a democracy it is, and nobody should be above the law, or able to manipulate the system in this manner, and evade justice, no matter who they are. Everyone in the legal profession should uphold these values.
Please also be mindful that in a democracy, the status quo does not persist forever, and that a Royal Commision may be far reaching.
I trust that you will be addressing some of these matters in the near future, with a mind to restoring the reputation of a once respected company, and your own as its head.
Thank you for taking the time to read this letter. It is my intention to send you a hard copy, and also forward a copy to the Victorian Law Society for their information.
Yours sincerely
(name supplied)