Julia Gillard - Paul Howes - Bill LudwigFairfax Media

The Michael Smith 2ue emails to Julia Gillard and the Bob Kernohan Statutory Declaration.

This is the next installment in the series of posts that I have been doing on Julia Gillard and her history of helping rip off the AWU and closing down the Australian media from reporting on it. It is also a lead up post to my next one which will dissect a story that was on the ABC program Media Watch which is hosted by Jonathan Holmes.

It is important that you have read at least a couple of my previous posts to fully understand this post. The links are:

7th August 2011: Australian Prime Minister Julia Gillard’s criminal history and her hypocrisy with WikiLeaks and Julian Assange.

28th August 2011: Julia Gillard who admitted helping rip off the AWU of over $1million stands by and supports Craig Thomson who is accused of ripping off the Health Services Union. The Australian Labor Party, beautiful one day, perfect the next.

5th September 2011: Has Julia Gillard blackmailed the Media to cover-up her corrupt past? The Fairfax Media and News Corp scandal.

I will not write too much as I do not want to take focus off the email correspondence between Michael Smith at 2ue and the Prime Ministers office which tells a story by itself. I put part of the correspondence in my previous post which was on the 2ue website. When Michael Smith was suspended from 2ue last Tuesday it was taken down, but luckily I had saved a copy.

Below is the correspondence where Michael Smith was asking valid questions of Julia Gillard and the palm off that the Prime Minister’s office gave him. Below that is the Bob Kernohan statutory declaration that has been doing the rounds. The statutory declaration by itself only has a certain amount of credibility, but when put together with the Michael Smith emails and other evidence the statutory declaration grows in power. If Bob Kernohan lied in the statutory declaration that is a criminal offence which I personally doubt very much that he would have done so. It must be remembered that Commissioner Ian Cambridge and current AWU boss Bill Ludwig also signed off on affidavits asking some serious questions about Julia Gillard’s time at the law firm Slater and Gordon.

This shows up in an article by Glenn Milne in The Australian in November 2007 where it says:

“In an affidavit the AWU’s then joint national secretary, Ian Cambridge, raised specific questions about the role of Ms Gillard’s law firm, Slater & Gordon, in the purchase of a Melbourne property by Wilson. “I am unable to understand how Slater & Gordon, who were then acting for the Victorian branch of the union, could have permitted the use of funds which where obviously taken from the union, in the purchase of private property of this nature, without seeking and obtaining proper authority from the union for such use of its funds,” Mr Cambridge said.”

“Current AWU boss, “Big Bill” Ludwig, a major Labor powerbroker on the Right, also provided an affidavit to the court outlining corruption involving Ms Gillard’s former lover.” (Click here to read the full article)

It must be noted that Bill Ludwig has in the last few days been caught with his hand in the AWU till to pay for his personal legal costs. (Click here for The Courier Mail report) (Click here for the ABC report).

The Australian has started reporting on Julia Gillard’s past again at least to some degree. Michael Stutchbury did a story on the 9th September where it gets mentioned. (Click here to read the article)

Like I said at the start the key focus of this post is the email correspondence. Read it and then read the statutory declaration and then read the emails again. It is important to have this knowledge for my next post.

I will do a follow post in the next week or so on Media Watch program and Jonathan Holmes where they did, what I regard, as nothing more than a disgraceful hatchet job. (Click here to watch the program).

Remember that Julia Gillard who admits having knowledge of and involvement in ripping off the AWU has never signed an affidavit or statutory declaration outlining her knowledge and involvement in the fraud and theft. She has also never given any detailed account of what she knows. When she has been asked in the past she just gives blanket denials and vague answers or answers that beggar belief as I have shown in previous posts. For 16 years she has refused to answer any detailed questions as the below emails reinforce.

Michael Smith emails to Julia Gillard:

It’s On the Public Record:

I write to the Prime Minister’s office on your behalf quite a lot.   They’re normally very professional and speedy in getting back with responses.

The PM has a large staff, as you would expect.

I have set out my correspondence with the PM’s office below, starting with my first note and ending with my last, unanswered note.

During my program today my producer sent a further chaser, she received a brief response that said “Maryann, I provided a response, regards, Sean.”

Are you satisfied with the PM’s response to my questions?   Are they reasonable questions?   Can you show me where the answers are?

30/08/2011, at 8:44 AM, “Michael Smith \(2ue\)” wrote:

Dear Prime Minister,

Did you ever create or cause any legal entity(ies) to be created with the letters AWU or words Australian Workers Union in its/their title(s)?

Did you create an Association known as “AWU Members Welfare Association”?

Did you establish or in any way instruct any person to establish any bank accounts associated with the “AWU Members Welfare Association” or “AWU Workplace Reform Association Inc” ?

Did you establish or in any way instruct any person to establish any bank accounts for the Australian Worker’s Union?

Did you receive any monies from any of the following bank accounts “AWU Workplace Reform Association” or “Australian Workers Union Members Welfare Association”?

Did you receive any clothes paid for by any other person or entity from the business known as Town Mode of Melbourne Fashion House?

Have you ever paid back any money to the Australian Workers’ Union?



From: Michael Smith (2ue)

Sent: Tuesday, 30 August 2011 9:55 PM

To: Michael Smith (2ue)

Cc: Kelly, Sean

Subject: Re: For the PM Please

Dear Sean,

I am looking at my file of correspondence with your office.

You have always impressed me with your speed in reversion.

What’s gone wrong?   Why is this enquiry different?   Did my message go missing?


From: Kelly, Sean

Sent: Wednesday, 31 August 2011 8:20 AM

To: Michael Smith (2ue)

Subject: RE: For the PM Please [SEC=UNOFFICIAL]

Hi Michael,

These are matters that have been dealt with on the public record over a period of fifteen years.


From: Michael Smith (2ue)

Sent: Wednesday, 31 August 2011 9:38 AM

To: Kelly, Sean

Subject: RE: For the PM Please [SEC=UNOFFICIAL]

Thanks Sean,

Just for clarity, the only public record I can find that goes close to answering those questions can best be summarised thus.

The PM was a partner at Slater and Gordon.   She took instructions from Bruce Wilson, an official with the AWU.

On Mr Wilson’s instructions she set up legal structures styled in a similar fashion to “AWU Welfare Association”.

The public record (ie media reports, including Glen Milne’s) says she set up the accounts, I infer from that bank accounts.

The PM is explicit in saying that she had no idea what the accounts were being used for.   She specifically and emphatically denies any prior knowledge of improper conduct or fraud.

She vigourously denies being involved in any way in any improper or illegal conduct.

The public record includes the Hansard reports in the Victorian Parliament.   The statements in the parliament include specific commentary about the renovation of a house and the acquisition of certain clothing from the Melbourne fashion house.   Just for clarity, is that public record accurate?


From: Kelly, Sean

Sent: Wednesday, 31 August 2011 9:41 AM

To: Michael Smith (2ue)

Subject: RE: For the PM Please [SEC=UNOFFICIAL]


The Prime Minister, as you note, has made comments about these matters in the past. I’d refer you to her comments.


From: Michael Smith (2ue)

Sent: Wednesday, 31 August 2011 9:44 AM

To: Kelly, Sean

Subject: RE: For the PM Please [SEC=UNOFFICIAL]

Thanks Sean, clearly we would love an interview about them, are there any circumstances in which the PM will speak with me?


From: Kelly, Sean

Sent: Wednesday, 31 August 2011 9:52 AM

To: Michael Smith (2ue)

Subject: RE: For the PM Please [SEC=UNOFFICIAL]

Michael, the Prime Minister has made comments about these matters, and has nothing to add to those comments.

From: Michael Smith (2ue)

Sent: Wednesday, 31 August 2011 9:56 AM

To: ‘Kelly, Sean’

Subject: RE: For the PM Please [SEC=UNOFFICIAL]


I’ll wait to hear from you about the circumstances in which the PM might be available for an interview.

Separately, I would like to take you up on the offer in your last sentence to refer me to the PM’s comments.   You have a considerable taxpayer funded media unit with publicly funded access to the Media Monitors organisation and its resources in collating and analysing media commentary.

May I ask that you make good on the offer you made below to refer me to her comments?   Where are they, what are the comments that you are happy for me to use?


Bob Kernohan - Affidavit - P1

Bob Kernohan – Affidavit – P1

Bob Kernohan - Affidavit - P3

Bob Kernohan - Affidavit - P4

Bob Kernohan - Affidavit - P5

Bob Kernohan - Affidavit - P6

Bob Kernohan – Affidavit – P6

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63 replies »

  1. Well Done Shane.

    Very pleased about your fight back, especially because of the way the Gillard “interference” with News Ltd was interpreted by the left wing media as a “triumph against the lies” type of story.’

    Media watch are particularly unpleasant and really they should be taken off air if they continue to report with such malicious bias. They appear to belong a major sub group of journalists whose main intentions are to further their own personal politics. To be allowed to continue with this pattern of almost unabashed and unchallenged reporting is clearly against the ABC charter- along with programs like Q and A. My” 8 cents a day” is clearly being used as a propaganda machine and we can only hope that this will eventually be questioned by someone as the ABC is receiving less and less of its market share of viewers, possibly because anyone who is not green/labor has now switched off to our ABC in disgust. (i.e. the majority of Australians)

    As Julia continues her push through parliament of her unpopular and failing policies it is now, more than ever, very important for the culture of the unions to come to the fore for everyone to understand and decide if this person withher past baggage and allegiances is the right person to be our Prime Minister or if her associations have tainted her. Personally I think they absolutely have and daily my impressions are confirmed with the media bringing up more and more reports of unsavoury practices and dodgy officials.

    Keep up the good work

    • Hi Carol, very well sumarised, Shane is doing a great job. Send your comment to mainstream paper Herald sun Andrew Bolts blog. I reckon he will give it a run. Also check out the article that Shane has posted this morning Monday 19th Sept 2011, more great work from Shane and very well researched. Once again well done Carol. Rob

  2. This whole saga is clearly getting out of hand and needs to be resolved one way or the other through an election. If Gillard believes that “She is the best person for the job” and firmly believes that the Australian people are behind her why hasn’t she got the nerve to call an election and let the people decide? Or is she hoping that in two years most people will have forgotten what has happened?

  3. Once again a great piece. Thanks for this. Things get taken down and covered over if nobody has sites such as yours. I’ve sent a few of yours to Bolt but they don’t seem to be getting put up. Pity that. He has a vast and varied viewing audience that I believe would enjoy reading your information.

  4. The terms ‘Accessory before and after the fact’ and ‘Receiver of the proceeds of crime’ come to mind.

    How about the ‘protection racket’ of selling up to $50,000 worth of phony union memberships to construction bosses and siphoning such ill-gotten gains into those dummy accounts? Have those construction companies ever been reimbursed for the fraudulent payments they were pressured to make?

    Hmmm, even Tony Soprano would have been delighted to operate with such impunity in this neck of the woods.

    No RICO laws, no Tax Office scrutiny, no corporate regulatory authority of any kind, no police involvement, no Parliamentary accountability – Sheesh!! anyone would think the crooks themselves (or their flunkies) had written the laws of this country. Oh wait – they have.

    Michael Smith is to be commended for his endeavours in seeking answers to these glaringly obvious questions. Seems the PM’s staff have a script-sheet they must adhere to – bit like a call-centre really. “Hello, thank you for calling. Sorry to keep you waiting, your call is really important to us.” Yeah right.

    Thanks for keeping us posted Shane.

  5. Thank you for your informative article. It is hard to believe that Gillard, who was a partner at Slater and Gordon, and involved with Wilson in setting up the account through AWU, yet did not ask Wilson, her lover at the time, what it was for!!! Even harder to understand is the fact that she has never had to PROVE that she was ignorant of this crime, that Slater and Gordon have been silent, we don’t know if she was sacked or asked to resign. She told Milne that she was “young and Naive”, and implied, innocent, because she was hurt in the love affair. Why the hell has this matter not been aired to the public earlier? Don’t politicians have a crime check before being employed? This stinks more than the Thomson rort! Keep up the good work.

  6. Shane.

    Is it OK legally to spread these things around. News Ltd certainly didn’t think so. And Fairfax. so if i send an email to some friends..where does that leave me (and/or others who want to spread the info) ? legally

    • It is perfectly legal and very much in the public interest for you and others to let as many people as you can know. All media report the content of statutory declarations and affidavits almost weekly. News Ltd and Fairfax did not stop reporting on this for legal grounds. They did because of political pressure given the possible media enquiry. As I said in the post News Ltd have started to report on it again to some degree. And I know a few of the directors of Fairfax Media owe Juliard Gillard a few favors, but that is another story.

      • Shane, Do you think that this story will ever come to light about the media owing favors to Gillard? Seems as though half the country are being blackmailed by Gillard!

      • I wasn’t talking about the media in general owing her favors just some of the directors at Fairfax Media. That is covered in my book “Love Letters from the Bar Table” which is my personal experience. But I avoid getting into that to much on here as it takes the posts off topic. That for example is how I learnt so much about the grubby history of Chief Federal Magistrate John Pascoe who I did a post on.

  7. My question obviously is was Julia Gillard involved in having the property of Wilson sold despite of the caveat, by using her position and authority of Slater & Gordon (working for the AWU) and also did she use this also to free up the monies from the Bank account the AWU president had sought to be frozen? Also, what if any involvement had Bill Shorten in the matter when it was investigated? did he fail to report matters to the relevant Authorities. the same with Jenny George and other involved?
    As a CONSTITUTIONALIST I am very concerned that we have people in the Parliament who seem not to give any proper clarification and so place in my view the integrity of the Parliament in question.


    • Great questions Gerrit.

      As you rightly ask; how can a house under caveat be sold without the party with a registered interest (the AWU) being notified? And are Banks now ignoring instruction from account owners as to access to funds?

      There simply must be records on these matters from the bank concerned and the court which granted the caveat originally. That is of course assuming that the legal representatives of the AWU ever actually lodged such applications to the court or the bank. Who was party to ignoring these instructions from the AWU?

      Until such questions are answered satisfactorily, these tentacles of corruption remain wrapped around the face of this Nation.

      • In the Statutory Declaration it says the house was sold just after Bruce Wilson left the union as part of the deal to hush up the fruad. None of the money came back to the union. I wonder if Gillard received any of the cash? And did she do the original paperwork to buy the house?

  8. Good to see someone having the guts to spread to truth. But people need to start realising that this has never been just about Julia Gillard. This is the about the absolute control of $Billions of dollars (As many do not realise that it is not only about the $1,600,000,000 in union membership fees that a select few control without scrutiny or accountability, but also the industry super funds which alone have already surpassed $16,000,000,000.00) And thus what would people do to ensure that does not change! As someone posted earlier Tony Soprano would be very impressed.

  9. The very least Gillard would be guilty of is professional misconduct. Having a personal and sexual relationship with a client is highly unethical, especially for a solicitor. That behaviour alone is indicative of her poor judgement and goes a long way to explain her poor judgement and performance as the leader of our country. It would appear that the whole affair has a long way to go before it fully unravels. is it also co-incidence that one of JG’s biggest defenders is Craig Emmerson, he ex-lover who , just so happened to share a flat with Craig Thompson in Canberra.

  10. They aren’t allowed near political power unless they are already corrupted and can be controlled. Reward of power and money vs fear of public exposure. It works the same in all the “democracies”. Certainly explains why Gillard is working so hard to push the globalist agenda here in Australia in the face of near complete opposition from the people. She’s doing as she’s been instructed. Turnbull was the Globalist’s man on the Liberal side, who unfortunately is still there, waiting.

    • Interesting comments guys and girls. I feel alive again as I thought all was lost! Nice to know that Gillard and Co hasn’t shut this site down. I have a Federal Police check before I go to some mining sites – don’t we have a thorough check for the position of Prime Minister. The Mining Tax is bad enough, it’s just as bad realising that the integrity of the post of PM has been compromised! I’m emailing everything you have here, or post here in the future to my friends. Thanks

  11. Dear Shane and Readers

    There is a petition now online to save Michael Smith from being sacked at 2UE.


    One significant signer, No 1231 was from the one and only Mr Bob Kernohan. He writes:

    “Michael Smith recorded 3 interviews with me at the 2UE Fairfax Studios in Sydney. Michael did nothing wrong. The 2UE management had expressed no opposition to Michael’s comments that he made on air. I should know, l was there. If they move to dismiss Michael, l believe it will result in a very high profile unfair dismissal claim. Should this happen, l have assured Michael that he will have my full support, and will be available to give evidence to support. Please support this petition. Spread the Word. Bob K ”


      • Shane l sent it to Andrew Bolt as well and it got knocked back. So much for supporting freedom of speech and freedom of the press. Most disappointing. Thankyou Shane for being supportive.

        PS I did email you 6th Sept 7.27pm but didn’t get a reply about another matter. .

  12. Michael Smith thought he was Bob Woodward for a minute, but he is nothing of the sort. This is old, old news, and re-hashing it is not investigative journalism. So what if the PM, acting as a lawyer, set up bank accounts for a client? This would require the stroke of a pen. It is not a lawyer’s job to scrutinise what happens with a bank account once it has been set up. Are you seriously suggesting that lawyers should be responsible for every bank account they help set up across their careers? If so, you are an imbecile, and if not, then leave this alone and move on.

  13. Only reason this is old news is because it was covered up when it happened. And again when it re-surfaced a few years later. And they are trying to cover it up again. Sacking Smithy is a gutless move by 2UE and they should be ashamed of themselves.

    • The matter is over. You mightn’t like it, but it’s the fact. “Smithy” got exactly what he deserved – do you really think Fairfax wanted a huge defamation payout to the PM because some loon can’t observe the laws of the land? I doubt “Smithy” would’ve offered to cover the bill and the government’s legal bills from his fat package. No, Fairfax’s shareholders would’ve coughed up. Meanwhile, are you seriously suggesting that lawyers should be responsible for every bank account they help set up across their careers?

      • The matter is a long way from over, the court case is afoot. Back in court sometime in October. What government legal bills? Would the governemt pay for Gillard to sue Smith? On current form your probably right as that is what has happened in the last couple of weeks with the AWU paying for Bill Ludwigs (AWU President) private legal expenses. Another theft from a Union.
        Lets get real. Gillard is never going to sue for defamation, because she would lose. Gillard has spent the last 16 years avoiding giving a detailed account of what she does and doesn’t know. If she sued for defamation she would have do exactly that, file an affidavit and then be cross examed on what she does and doesn’t know. That wont happen.

  14. If you seriously see this as nothing more than a solicitor setting up an account for a client then you need to take the blinkers off. Your attitude toward Michael Smith tells me a lot about you.

  15. Absolute twaddle. The Tories need to understand they lost the last election and wait their turn until the next one. Which I suspect they may also find a way to lose. This constant sniping from the sidelines trying to find a way – anything will do – to bring down the elected government of the day is embarrassing and unbecoming. 2UE’s lurch to the right is failing and so Smith would’ve lost his gig sooner or later. He belongs in some lesser state such as Queensland or South Australia, though i doubt the South Australians would have him.

  16. I didn’t think anyone won the last election, just one side was prepared to bend over a bit further than the others. Have you even read this page? If so, why are you here.

  17. My question is where Julia gillard was allegedly in a relationship with Wilson and being the lawtyer for Slater & gordon for the AWU did she can withdraw the caveat of the president of AWU so Wilson could sell the property and did she also in her position as lawyer for Slater & gordon for the AWU use this position to withdraw the stop the president of the AWU had placed on the bank account? In my view if she acted in such manner then this could be a very serious matter!

    • I already answered the caveat part in comments above where I say “In the Statutory Declaration it says the house was sold just after Bruce Wilson left the union as part of the deal to hush up the fraud. None of the money came back to the union.” As far as the bank accounts I am not sure, probably part of the deal to hush up the fraud as well.

  18. Another sad development in this saga. The email address msmith@2ue.com.au is no longer working. I talked to him on Wednesday and now it is returning as failed. They have no intention of re-instating him and I hope they are truly made to pay for their behaviour.

  19. It appears Julia Gilard has deployed some of the bullying tactics she would have learnt years earlier from her former lover Bruce Wilson.

  20. Our family and friends have blackbaned radio 2UE over their censorship of free speech and democracy !

    we will never ever listen to them again!!


    Michael Smith will find a better radio station to work for instead of the UTTERLY DESPICABLE AND GUTLESS RADIO 2UE !!

    • Ray, my name is Bob Kernohan and you can check my bonafides with Shane on this blog. I concur with your comments regarding Michael Smith. For my part I think that any further comment from me at this time may well be counterproductive to “the cause of free speach”. Suffice to say that Michael has my total support not only for tomorrow in court. Michael has my unwavering support him and the cause of free association and free speach. I will have a lot more to say when I am confident that anything I might say will not compromise the present fluid enviorment on this issue.

      Shane is a person who I have yet to meet, however I have stated in the recent past that he is a person whom I admire. His research on not only this issue but in all issues that I have sourced is impeccable. Best that I leave further comment till later. Bob Kernohan.

  21. After disastrous 16 years nsw labor party moved to Canberra. They’ll turn entire Australia into nsw. Gillard’s determined… and she will succeed; the biggest debt, the worst government, her reputation is internationally ruined .. the ‘best thing’ that can happen to that ‘poor thing’ s going to be an election. She looks like she understand; she isn’t good enough for the top job; she looks like kindergarten kid told to perform brain surgery. Parliament question time isn’t intellectual debate like in Howards time; when cornered she’s talking claptrap, gossips, she fights, blame this1 and that1 for her own failures… very sad

  22. Michael Smith and 2UE / Fairfax Media have settled their case. The exact settlement I do not know. Reporter Lisa Davies from The Telegraph says that Michael Smith is to leave the station.

    • So … what are you saying…? Julia is corrupt but has something on parts of the media … could only be that some journalists in the Australian media have been hacking into mobiles – just like some UK journalists have been caught doing???

  23. I cannot believe that nothing has been done on all the corruption by Julia Gillard, Craig Thomson and all the others involved. I am a law abiding citizen and expect that the person running this Country is clean and has no criminal activities surrounding her. Please explain how she has managed to get away with all this. Michael Smith who has done the right thing in pursuing her back behavior lost his job..

  24. NSW has never had a respectable Chief Judge. This is the result of years of bribery and corruption. About Gillard? To have the PM with criminal record isnt something we should be proud. And we cant get rid of this woman?

  25. I’ve just emailed the link to your YouTube clip ‘PM Julia Gillard’s Criminal History & Her Hypocrisy with WikiLeaks & Julian Assange’ as well as your site link to every person in my address book. I also shared the clip on my Facebook page along with the site link. I want every one I know to pass this on. I did some checking of my own as I’ve never trusted JuLiar ‘commie’ Gillard and found this Thank goodness for people like you!

    Edited. The link you put up was already covered in a post I did which is here: http://kangaroocourtofaustralia.com/2011/08/07/australian-prime-minister-julia-gillards-criminal-history-and-her-hypocris-with-wikileaks-and-julian-assange/

    Somone else did the youtube clip you talk about. I do not know who. But they seem to cover my post.

  26. Michael Smith has been railroaded. I have listened to the Alan Jones and Michael Smith radio broadcast and it leaves a lot to be desired from Gillard. Something has to be done about this woman. If she has nothing to hide, she should stand up and be counted If there is no wrong doing, fine. Her credibility is intact. If she is caught out and guilty of wrong doing, she should be charged accordingly and be sentenced to a term of imprisonment. Michael Smith should then be reinstated. How dare his employers do that to him on the say so of Gillard, when they didn’t know if it was a true storey or not.

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