Examination of Ralph Edwin Blewitt 12 May 2014

ROYAL COMMISSION INTO TRADE UNION GOVERNANCE AND CORRUPTION

AUSTRALIAN WORKERS’ UNION – WORKPLACE REFORM ASSOCIATION INC

EXAMINATION OF RALPH EDWIN BLEWITT – 12 MAY 2014

OPENING STATEMENT BY COUNSEL ASSISTING

Today’shearingrelatestoanincorporatedentitynamedAustralianWorkers’Union-Workplace

ReformAssociation Inc(Association).

TheAssociationwasincorporatedinWesternAustraliaon24June1992undertheAssociations

IncorporationAct 1987(WA). It wasderegisteredon 20 February2006.

TheAssociationisa“relatedentity”withinthemeaningofparagraph(a)ofthisCommission’s

termsofreference.

Asthenameof theAssociationsuggests,itrelatesto theAustralianWorkers’Union(AWU),one

ofthe employee associationsnamedin paragraph(b)ofthetermsofreference.

Today’switnessisMrRalphEdwinBlewitt,whowaspreviouslyAssistantSecretaryoftheWA

Branch oftheAWU.

Mr Blewitt is, and hasfor some considerableperiod been,aresident ofMalaysia.

MrBlewittarrivedbackinAustralialastweek. HeislikelytoreturntoMalaysiainthenear future.Inthese circumstancestheCommissionistaking advantageof MrBlewitt’stemporary presencein Australiato hearhisevidence today.

FurtherwitnessesrelevanttotheAssociationarelikely tobecalledbytheCommissionindue course. Howeverthosehearingswillnotproceedimmediately upontheconclusionofMr Blewitt’sevidence.

Summary of Mr Blewitt’s likely evidence

Whentoday’shearingwassetdown,counselassistingtheCommissionhadnotyetspokentoMr

Blewitt.

Giventhis,nostatementofMrBlewitt’sevidenceinthisCommissionhasbeenpreparednor

circulatedin advanceto persons who maybe affected byMr Blewitt’sevidence.

Inoverview,theevidencewhichMrBlewittislikelytogivetodaymaybesummarisedas follows.

In1991theWesternAustralianDepartmentofHarboursadvertisedfortendersforaconstruction

project knownasthe“DawesvilleChannel Project”.

TheDawesvilleChannel isaman-madechannellocatedabout80kilometressouthof Perth.It permits seawaterfromthe Indian Oceanto enteran estuary.

ThesuccessfultendererfortheDawesvilleChannelProjectwasThiessContractorsPtyLtdor oneor moreofitsrelatedentities(Thiess).

OnceThiesshadobtained thecontractto constructtheDawesvilleChannelProjectit entered into anarrangementwiththeAssociationfortheprovisionofservicesrelatingtoworkplacereform and safety, as set out ina letter dated16 March 1992 from Thiessto theAssociation.

ThislettercontemplatedtheAssociationprovidingarepresentativetocarryoutservicesrelating toworkplacereform,sitesafetyandoperatortrainingontheDawesvilleChannelProject.The letterstipulatedthatthe Association’srepresentativewouldwork,andbepaidfor,acertain number ofhoursper week, and that the agreedrateofpaywould includereimbursement for travel costs, accommodationandotherexpenses.

AtaboutthistimeMrWilsonorMrBlewittorbothappeartohavelodgedanapplicationfor incorporation of the Association with the Western Australian Commissioner for Corporate Affairs. Thisapplicationwasunsuccessful.

FollowingthefailureofthisinitialattempttoincorporatetheAssociation,inaboutMarchor April1992MrWilsonandMrBlewittflewtoMelbournetoseeklegaladvicefromthefirm Slater &Gordon.

Whilein MelbourneMrWilson and MrBlewittattended ameetingattheoffices ofSlaterGordon.InadditiontoMrWilsonandMrBlewitt,themeetingwasattendedby oneormore partners ofSlater &Gordon.

At this meeting at least three documents appear to have been drafted or finalised: (1) an applicationforincorporationoftheAssociation;(2)acertificatetoaccompanytheapplication; and (3) theRulesoftheAssociation, includingitsobjects.

Whilethesedocumentswereotherwisecompleted,MrBlewittdoesnotappeartohavesigned themthere and then. Rather,hetook thedocumentswith himback to Perth.

Then,on22April1992, MrBlewittsignedthe applicationand the certificate. Thefollowing day helodged thedocumentsat theOfficeoftheCommissioner for CorporateAffairs.

Thissecond attemptatincorporationwassuccessful.On24June1992theAssociationwas formallyincorporated bytheWestern AustralianCommissioner for CorporateAffairs.

Ataboutthesametimeaslodgingtheapplication,MrBlewittcausedtheAssociation tostart issuingregular monthlyinvoicesto Thiess.

Ontheirface,theinvoicesleviedchargesfortheprovisionby theAssociationofarepresentative tosupplyservicesrelatingtoworkplacereformandsafety,consistentlywiththeletterdated16

March 1992referred to above.

However,MrBlewitt’s evidencetodayislikelyto bethattheseinvoiceswereasham. Infact, no work was carried out bytheAssociationat thesiteoftheDawesvilleChannelProject.

Presumably ontheincorrectassumptionthatsuchserviceshadbeenprovided,Thiesspaideach invoiceissuedto it bytheAssociation.

By thistimeMrBlewittandMrWilsonhadcausedvariousaccountstobeestablishedwiththe CommonwealthBankofAustraliainWesternAustralia.The cheques receivedfrom Thiess were deposited to oneor otherofthese accounts.

MrBlewitt’s evidencewillbethatheandMrWilsonretainedthesefundsfortheir ownuseand thatthemembersoftheAWUderived no benefit fromthem.

Inapproximately midorlate1992MrWilsonmovedfromPerthtoMelbourne,wherehetookup aposition withtheVictorian branch oftheAWU.

Inearly1993fundsoftheAssociationwereusedtoacquireapropertyinMelbourne,knownas

Unit 1/85 Kerr Street, Fitzroy(theKerr Street property).

TheKerr Street propertywasboughtin Mr Blewitt’sname, but for theuseofMrWilson.

ThesalepriceoftheKerr Streetpropertywas$230,000. Mr Blewitt’slikelyevidencewill bethat approximately $93,000ofthefundsrequiredtocompletethesaidsalecamefrommoneywhich had been paid totheAssociation byThiesson thesham invoicesreferredto above.

ThebalancewasborrowedfromSlaterGordonorapersonorentity associatedwiththatfirm, theloan being securedbyafirstmortgageover theKerr Street property.

Thesalecontractandsecurity documentsassociatedwiththeacquisitionoftheKerrStreet property wereexecutedbyMrWilsonusingapowerofattorneygrantedtohimby MrBlewittin February1993.

MrBlewittwill alsogiveevidence tothe effectthathewithdrewvariouscashsumsfromthe Association’sbankaccounts.Hewouldstorethemoneyforaperiodof timeuntilhenextsawMr Wilson. Mr Blewitt saysthat hethen handed overthe cashto Mr Wilson.

Otherthanhanding themoney overtoMrWilson,MrBlewitt’sevidencewillbethathedoesnot know what happened to the cash which wastaken fromtheAssociation’svariousaccounts.

TheKerrStreetpropertywassoldinMarch1996. Presumably themortgagewaspaidoutatthat time. Assuming thattheproceedsof sale exceeded theamountrequired to procureadischargeof themortgage,Mr Blewitt’sevidencewill bethat hedid not receive anyofsuch proceedsofsale.

Applicationsforauthorisationtoappear

Mr Blewitt’s solicitorispresent in Courtand hasauthorisation toappear.

MrWilsonhasalsosoughtandbeengrantedauthorisationtoappear. SeniorcounselforMr

Wilson appearstoday.

Anumberofotherpersonswhocouldhaveaninterestin,orbeaffectedby,MrBlewitt’s

evidencehavebeen notified ofthefactthathewillbegivingevidencein publichearingtoday.

Atthisstagenoneofthoseotherpersonshasmadeanapplicationforauthorisationtoappear.

However theirlegal representativesarepresent at today’shearing.

Commissioner, unlessthere are anyquestions, IcallMr Blewitt.