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Gillard insisted that while she, as a salaried partner at Slater & Gordon, had helped establish the slush fund from which her boyfriend and senior Australian Workers Union official Bruce Wilson had filched more than $400,000, and while she had helped his crony buy a Fitzroy unit with some of those funds, she knew nothing about the racket until it was exposed by others in the AWU.
The Prime Minister's use of language in recent weeks to maintain her thesis that she has answered everything there is to answer about the sordid events of two decades ago has been skilful. A marathon media conference in late August looked to have put the issue to bed, until fresh news reports raised fresh questions. Then Gillard deflected a barrage of opposition questions in Parliament two weeks ago without really answering any of them.
But fighting words may no longer be enough to see off an issue on which many in the 0pposition, a growing number of journalists and a significant group within the Prime Minister's own Labor caucus believe she is compromised and vulnerable. To them, Gillard's strident responses have begun to sound more evasive than convincing.
While nothing beyond circumstantial evidence has emerged to challenge Gillard's insistence that she did nothing wrong - and knew nothing wrong was being done - her account of events remains questionable in several key areas: her role in establishing the AWU association, her role in the purchase of the Fitzroy unit and her recent insistence that none of the stolen funds slushed in her direction.
Gillard says she only gave routine advice on the establishment of the association, but, as The Age revealed last month, a letter she wrote to the West Australian Corporate Affairs Commission in mid-1992 was instrumental in overcoming the commission's objections to its formation - supposedly to promote workplace safety and training rather than the union election ''slush fund'' she later conceded it was. Now Slater & Gordon is unable to find the unofficial incorporation file kept by Gillard, and a corresponding file held in the WA archives was recently found to be empty - neither of which supports the wistful contention of Gillard backers that this is the end of that matter.
She drafted the power-of-attorney Wilson used to buy the unit in the name of his crony, Ralph Blewitt, at an auction she attended with Wilson. She organised finance from a Slater & Gordon loan facility (in addition to more than $100,000 siphoned from the AWU association) and she rounded off the work by signing, ''fee declined, Julia''. And later she was a regular guest in the premises Wilson made his Melbourne home.
As the opposition gears up for a fresh attack when the House of Representatives sits again in two weeks, the inconsistencies in the Prime Minister's answers are likely to fuel the controversy and reinforce the impression that she has not given a comprehensive account of what she knew and when.
Whatever happens, there is no doubt Gillard's emphatic denials of any wrongdoing, both in public and in Parliament, make her vulnerable in the event that there are further revelations that challenge or contradict her account.
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