Australian newspaper The Age reported today, that a key former accountant for the Australian Workers Union, Russel Pearson, has undermined Prime Minister Julia Gillard's depiction of the slush fund which she helped set up in 1992 as a legitimate association needed to help finance union campaigns.

The Age reports that Gillard gave extensive legal support to the establishment in Perth of the Australian Workers Union Workplace Reform Association from which more than four hundred thousand dollars was stolen by her then boyfriend.

Meanwhile, Australian Investigative Journalist, Michael Smith alleges that compelling evidence points to a scam that can be traced right to the doorstep of incumbent Prime Minister, Julia Gillard.

Smith speaking exclusively to Newsfirst, said he is baffled by the authorities' failure to initiate an investigation, in what he claims is a Prima Facie case.

For more on this story, tune in to prime time news at 9 tonight.