Julia Gillard moves to distance Labor party from scandals Julia Gillard has suspended Craig Thomson, who is accused of misusing funds. The Australian prime minister, Julia Gillard, has moved to distance herself from growing anger at a series of government scandals, suspending a politician accused of misusing funds, a week after the parliament Speaker stood down over a sexual harassment lawsuit. The suspension of Craig Thomson from the Labor party was seen as unlikely to weaken Gillard's already tenuous grip on power as he is expected to support the government as an independent. The prime minister has been struggling after months of poor polls, which predict a landslide victory by the opposition leader, Tony Abbott, in an election which must be held by next year at the latest. Her government has relied on independents since a 2010 general election, which returned a hung parliament. Gillard said the accusations against Thomson, coupled with the sexual harassment lawsuit against the Speaker Peter Slipper, had shaken public confidence in parliament. "I believe a line has been crossed about respect for the parliament," she told a media confidence, adding that Australians now saw "a dark cloud" over parliament. Slipper denies allegations he sexually harassed a male staff member and misused taxi vouchers. Thomson has been under investigation for almost four years for misusing funds from his time as a union official. He denies the allegations. Slipper had stepped aside as speaker a week ago after a former adviser, James Ashby, filed complaints in the federal court of sexual harassment and fraud. But Slipper had only agreed to stand aside during the police investigation. He released taxi vouchers last week that he said proved that Ashby's allegations of fraud during limousine rides in Sydney in January and February were false. Gillard and her senior ministers had agreed there was no precedent for public officials to stand aside because of civil suits such as sexual harassment. The government had hoped Slipper would return to the Speaker's chair when parliament resumed 8 May. Slipper said in a statement on Sunday: "The criminal allegation has been shown to be a fabrication and there is no longer any reason to step aside. I believe, however, that it is imperative that the dignity of the parliament be upheld. He added that he would ask his deputy to act as Speaker when parliament resumed. Slipper defected from the conservative opposition in November last year to accept the prestigious job, which has limited voting rights. His defection cost the opposition a vote in the closely balanced House of Representatives. While he is sidelined, a Labor lawmaker will take the seat, in effect depriving the government of a vote.