How to "siphon" money

Date

Deputy opposition leader Julie Bishop says Julia Gillard deliberately did not open a file when she helped set up union slush fund in the 1990s because she wanted to hide the fact it would be used to "siphon" money.

Ms Bishop on Tuesday also admitted she met the notorious union bagman Ralph Blewitt on Friday. He returned to Australia last week to give a statement to police about the AWU fraud.

As a lawyer with Slater Gordon, the prime minister advised her then partner Bruce Wilson and Mr Blewitt on the establishment of the Australian Workers' Union Workplace Reform Association.

Ms Bishop on Tuesday said Ms Gillard had set up an "unauthorised association" that was in breach of West Australian laws.

"The reason she didn't open a file within Slater Gordon - a file that would have shown a new legal entity was set up - was because she and Wilson and Blewitt wanted to hide from the AWU the fact that an unauthorised entity was being set up to siphon funds through it for their benefit and not for the benefit of the AWU," she told reporters in Canberra.

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