EXCLUSIVE by STEVE LEWIS and SAMANTHA MAIDEN

The Sunday Telegraph

November 25, 201212:00AM

JULIA Gillard's ex-lover Bruce Wilson has declared the Prime Minister knew nothing about a 1990s union fraud scandal.

Speaking out for the first time the former Australian Workers Union boss said Ms Gillard "knew absolutely, categorically nothing" about the affair.

Mr Wilson - who now works as a cook on the Central Coast - said: "They can go on a witch-hunt for as long as they like and they will find nothing that will do her (Gillard) any harm.

"It's just a waste of time, they will find nothing."

Mr Wilson also rounded on the union bagman Ralph Blewitt, attacking his former mate as a "very risky" person for Ms Gillard's critics to rely upon.

"Relying on Ralph to be your star witness is a very, very risky strategy," Mr Wilson told The Sunday Telegraph.

"It's not one I would be prepared to take."

Mr Wilson - referring to those who are pursuing the AWU story - said "there is a group of people who are being funded by God knows who - good luck to them".

"But they are going to come unstuck - big time."

The Prime Minister has consistently denied any wrongdoing in the establishment of a union slush fund when she worked as a lawyer in the 1990s.

As the Coalition warned the issue would dominate parliament during the final sitting week and accused the Prime Minister of "stonewalling", the Treasurer also attacked the credibility of Mr Blewitt.

Mr Blewitt, a self confessed patron of Balinese brothels and union bagman has admitted he's "no angel".

And Penelope Lennon, Mr Blewitt's younger sister who said she been estranged from Mr Blewitt for years, said she wouldn't trust his evidence.

"I haven't changed my mind. He is a crook," she told The Sunday Telegraph yesterday.

"They should lock him up and throw away the key."

Mr Blewitt told The Sunday Telegraph: "I have a sister and others tipping the bucket on me right now. It's a private family matter, we haven't seen each other for 35 years."

Mr Blewitt's Australian ex-wife, who asked not to be named, also confirmed that she had no idea Mr Blewitt had bought a house in Melbourne in the 1990s with union cash despite the fact they were married at the time.