The Slog has learned that what are being called ‘suspicious circumstances’ surround the role of Australian Labor Party and Prime Ministerial Deputy Wayne Swan in the country’s recent political upheaval. As a direct result of the dispute between the Government and the mining companies, Kevin Rudd fell from power and Julia Gillard took over. She moved rapidly to settle the dispute.

Sources close to Labor’s South Australian Premier Mike Rann are suggesting that Swan was involved in “at best murky and at worst crooked” dealings as Kevin Rudd’s tax stance against multinational mining concerns in Australia began to look like a political millstone. A close Rudd ally says:

“At one point, Swan was the one holding out, egging Kevin on to call the miners’ bluff. Kevin would’ve done a deal with the companies had it not been for Wayne Swan telling him to hold firm. Now he’s all for the deal, and right behind Gillard. It stinks, and Swan is up to his neck in what smells”.

The immediate Rann circle is staunchly anti-mineco. In his early career, Mr Rann was a Greenpeace activist. He remains the Minister for Sustainability & Climate Change.

A week ago, The Slog ran a piece examining Julia Gillard’s relationships with the miners and their employees. The general opinion we audited seemed to be that she might isolate the hardline anti-tax miners, and get a compromise with the rest. But in what mining insiders have described as “an amazing outcome”, Australia’s first woman PM signed an all-inclusive deal to dramatically reduce the proposed tax to 30%.

These latest revelations tend to confirm that her rise to power was not entirely accidental. More to the point, they also cast doubt on how the deal was achieved. As late as June 27th, mineco leaders were releasing press statements angrily threatening to resume their anti-tax ad campaign. But then Wayne Swan returned from the G20on the 28th, and events began to take shape.

Sydney’s Network Nine broadcaster regularly uses the services of retired Labor politician Graham Richardson. While not a great Rudd fan, Richardson sees the bloke as his own worst enemy rather than a bad egg. He told a Slog contact:

“Wayne has history when it comes to the dark side of politics. I hear that he extracted a price from the miners in return for softening his stance”.

Whether he meant a personal or political price is unclear. But Graham Richardson’s ‘dark side’ reference is probably to the 1996 scandal in which it was alleged that Swan ‘bunged’ the Liberal Party $1500 in return for a ‘redirection’ of preference votes in his favour.

“Gillard is likeable, and formidable. But what is disappointing is that her first utterances – on the mining tax, and yesterday on population policy – seem to be completely poll driven”, an Aussie newspaper oped wrote last week. But was her deal entirely ungreased by mining money? Although Rudd made a mess of the PR about mining profits, even the IMF felt that the proposed tax was a fair price for the multinationals to pay: in that context, why cave in to the tune of 10% less – a one-third reduction in the amount due?

As yet unsubstantiated reports suggest that Swan’s demands were pivotal both to Gillard’s elevation, and the size of the tax relief for miners. A mining analyst told us yesterday, “I think most observers in the sector are amazed at the deal they [the minecos] got.” So overall, although Gillard’s moral flexibility is looking increasingly Blairite, doubt remains in the minds of many Aussie voters about Wayne Swan’s ethics.