The royal commission into trade union corruption has taken aim at slush funds used to re-elect officials or for various shadowy purposes.
Generic slush funds have become an increasing concern over the past two decades, the commission said in an interim report released on Friday.
The most notorious of these was the Australian Workers Union Workplace Reform Association, set up by union official Bruce Wilson with some legal assistance from his then boyfriend Julia Gillard.
It recommended Wilson and his associate Ralph Blewitt be referred to prosecutors in Victoria and Western Australian.
The commission also examined another AWU fund and ones established by officials from the CFMEU, National Union of Workers and the Transport Workers Union.
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Money for the slush funds was raised "by unlawful or unconventional means", and were less transparent than traditional union fundraising methods such as barbecues or raffles.
People giving money may not fully realise what they were contributing to, since objects for the funds were often "deliberately broad".
The Heydon commission found generic funds had significant governance issues with no or inadequate record keeping.
It also criticised the secrecy and governance issues surrounding union election or fighting funds.
These are generally built up through automatic deductions from the salaries of union members.
"On its face there is nothing objectionable about such a fund," the commission said.
"A member who decides voluntarily to contribute to an election fund is free to do so."
However, the voluntary nature of the contributions was often "questionable" and many such funds offered insufficient disclosure about their activities of the fund and limited record keeping.
COMMISSION'S CONCERNS ABOUT SLUSH FUNDS:
* Operate largely in secret.
* Deficient or non-existent record-keeping.
* Contributions may not be voluntary.
* Disproportionate advantage to incumbents.
* Candidates commonly plead ignorance over funding sources, expenditure and debts incurred.
SLUSH FUNDS EXAMINED BY THE ROYAL COMMISSIONER
* Australian Workers Union - Workplace Reform Association (Bruce Wilson and Ralph Blewitt)
* Industry 2020 Pty Ltd (AWU - Cesar Melhem)
* Building Industry 2000 Plus Ltd (CFMEU Victorian divisional branch)
* IR21 Ltd (National Union of Workers)
* The Transport, Logistics, Advocacy and Training Association (Transport Workers' Union)
ELECTION OR FIGHTING FUNDS EXAMINED
* The McLean Forum Ltd (Transport Workers' Union national and NSW offices)
* New Transport Workers' Team Inc (TWU Queensland)
* Transport Workers' Union Team Fund (TWU Victoria)
* HSU Officers' Election Fund (HSU NSW and Michael Williamson)
* Our HSU Inc (HSU NSW and Gerard Hayes)
* HSU No.1 Branch election campaigns (Marco Bolano and Diana Asmar)
* Shop, Distributive and Allied Employees Association, Queensland Branch Fund
