GANGLAND killer Carl Williams was beaten to death in a high-security prison with part of an exercise bike.

Police said an inmate struck Williams on the back of the head several times with a heavy object, believed to be "the stem of an exercise bike".



Williams' death at the hands of at least one other inmate at 12.50pm (AEST) was captured on CCTV cameras at Barwon Prison in Victoria.

Pictures: Inside Barwon Prison

Online: Web reaction



Deputy Commissioner Sir Ken Jones said Williams was found by prison staff in his cell. He died at 1.47pm after sustaining head injuries and suffering a heart attack.

Victorian Police Minister Bob Cameron said there were two suspects in the murder. One is a person of "special interest", he said.

Earlier, a police statement said: "Police believe an altercation occurred between Williams and another inmate about 12.50pm with Williams suffering head injuries after allegedly being struck about the head.



"A man is in custody and will be spoken to by police as part of the ongoing investigation."



The nearest officer at the time of the bashing was about 10m away, but was not in the same room.

Mr Cameron said that Williams, 39, shared a unit with two men he had been "happy" with.



The three men were allowed to associate with each other for six hours a day, between 8am and 2pm, but were not always supervised.

"There are times when they are supervised, there are times when they are not,'' deputy corrections commissioner Rod Wise said.

Three investigations have begun into the murder: A police murder investigation; a coronial investigation and a Corrections Victoria review.



Bad news



Carl's father George declined to comment to the media at his Broadmeadows home.



A friend of Mr Williams' said his mate was shattered at the loss of his son.



''He's not too good. How do you think you would be,'' he said.



The friend said police came to Mr Williams house to offer support and provided no details about what happened to his son.



"They just came out to tell him he had counselling if he needed it,'' he said.



"We don't know how he's died or how it happened. He won't talk to you so just leave him alone.''



The friend suggested Mr Williams was angry at the death of his son.



''You work it out,'' he said.



''It's supposed to be maximum security.''



Earlier, underworld figure Mick Gatto said he had heard unconfirmed rumours about Williams having died but said that was all he had heard.



"I would rather let dead dogs lie," he said.



"If you hear any more let me know but I would rather not comment on him."



He said Williams was "certainly not" a friend.

Victorian Premier John Brumby said he wouldn't comment on the death until he had more details.

Williams, who was serving a 35-year prison sentence for several murders, was a key player in Melbourne's brutal underworld war that claimed about 30 lives and took police more than a decade to bring under control.



In sentencing Williams, Supreme Court judge Betty King said there were "no other appropriate penalties for crimes of this nature, gangland executions carried out ... in the presence of frightened men, women and children".



Justice King said she was concerned Williams could become a cult hero.



"You are a killer, and a cowardly one who employed others to do the actual killing," the judge said.



Police payroll



Meanwhile, it was revealed today by the Herald Sun that police paid the private school fees for Williams' daughter.



The $8000 payment was made by Victoria Police command for Williams' child to attend a top private school.



A letter written by the Victorian Government Solicitor's Office, and signed by its managing principal solicitor in February, shows police admit they paid for Williams' daughter to attend the school.



Williams' lawyer Rob Stary said he spoke to Williams about 9am today about the revelations in the Herald Sun.



Mr Stary said he and Williams talked "about how disturbed we were that material was being leaked to the press''.



"Of course he was (upset),'' Mr Stary said.



"It exposes his daughter to risk. Of course he was concerned about that. He was not concerned about his own wellbeing, he was concerned about her.



"I just hope that justice prevails.''



The Herald Sun was unable, for legal reasons, to outline why the school fee payment was made.

With AAP and the Herald Sun

