EYE-BALL’s Human Evil Exposed – John O’Neill (CEO-ARU) … Part 2

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Human Evil Exposed –
John O’Neill (CEO-ARU) … Part 2


Link to all Posted Chapters for –

“Human Evil Exposed – John O’Neill (CEO-ARU)” – The SBS Story

The “Human Evil Exposed” – John O’Neill story link above takes you to a new page where all the chapters to this story are listed and linked.

All the documents that form a part of this story as evidence is linked here. These documents form the evidentiary trail collected as a part of the research undertaken during this project.

The “Human Evil Exposed” – John O’Neill story thus far covers events that took place between 1931 – 1995. The final ending is still to be played out. The motives for what took place in the late 70’s and early 80’s happened in 1931 when the then NSW Government owned – ‘Government Savings Bank of NSW’ was forced to close its doors. This set in motion a number of events that were not resolved until Dec 1987. The motives behind this story are steep in history and these grudges were held for a long time.

After they were finally settled – what then took place culminated in a $75 million FRAUD of public monies carried out by the NSW Government(NSWG) and its agent – The State Bank of NSW – (SBNSW) in 1988.

The players involved and connected with this FRAUD include:

  • Three consecutive NSW Premiers, Wran, Unsworth and Greiner,
  • Several Ministers serving in those Governments and their staffers – one of these Ministers is now a Justice with the NSW Land and Environment Court,
  • Regulatory Departments including the Department of Co-Operatives, Office of Business and Consumer Affairs, and the Australian Association of Permanent Building Societies, (AAPBS) and,
  • Employed State Bank of NSW Executives – the MD was John O’Neill – who all acted in proven ‘conflict of interest’ positions as Directors on the State Building Society Board, and whose intent was to facilitate a FRAUD against the 270,000 SBS members.

It’s a story that crushed the second largest NSW Building Society and at the time it had $1.6 billion in assets, some 270,000 Society members, and 650 SBS staff.

This is a story told by someone who lived through the 87-88 period and is told from his perspective and the evidentiary proof collected from research undertaken to prove the allegations. This story comes from a corrupted base of Corporate greed, corrupt and immoral Director’s, complicit Government representative’s, ego’s driven by historical flawed motive’s, financial market operative’s, drugs, sex, and the brazen Corporate RAPE and THEFT of the $75 million value attached to the State Building Society.

John O’Neill as the MD of the SBNSW destroyed a profitable and functioning Building Society because he could. It was done out of spite and revenge because he lost the 10 year plan to merge the SBS with the SBNSW. In the process he stripped the SBS of its corporate worth and broke all the Corporate and Regulatory rules in doing so. Rules that were put aside by the Administrators charged with the protection of the SBS members and their entitlements. He had help in the NSW Premier Nick Greiner who sanctioned O’Neill’s actions.

The story has many sub-plots and plots within those sub-plots – it is complicated, and to get a full appreciation of these complexities there is much reading to be done.

Please use the comments option below each post for any comments you might want to express – to ask any questions you want clarified – or if you want to make a private comment … please use the e-mail link here – blogcomment@bigpond.com – Enjoy the read …

The EYE-BALL Opinion … [ … where evil lurks – so do friends of the devil … ]

Definitions of Allegations alleged against Mr John O’Neill and his cohorts …

Linked: The Definition of EVIL:

  • morally wrong or bad; immoral; wicked: evil deeds; an evil life.
  • harmful; injurious: evil laws.
  • characterized or accompanied by misfortune or suffering; unfortunate; disastrous: to be fallen on evil days.
  • due to actual or imputed bad conduct or character: an evil reputation.
  • marked by anger, irritability, irascibility, etc.: He is known for his evil disposition.

Linked: Moral Bankruptcy:

  • Definition: the state of being devoid of morality and ethics, used esp. for business and political entities
  • Example: A complete lack of morals is moral bankruptcy.

Linked: Definition of RABID:

  • – irrationally extreme in opinion or practice:
  • – furious or raging; violently intense:
  • Synonyms – zealous, fervent, ardent, fanatical, bigoted.

Linked: Definition of FRAUD:

  • – deceit, trickery, sharp practice, or breach of confidence, perpetrated for profit or to gain some unfair or dishonest advantage.
  • – a particular instance of such deceit or trickery: mail fraud; election frauds.
  • any deception, trickery, or humbug: That diet book is a fraud and a waste of time.
  • a person who makes deceitful pretenses; sham; poseur.

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Part 2 – The Ministerial Interference commences …

One of the most incriminating documents uncovered during a two year research undertaking was a letter from the NSW Solicitor Generals Department.  The letter was in response to a request made by Premier Greiner in relation to an Amendment Bill being sponsored by the ‘Office of Fair Trading’ Minister Mr Gerry Peacocke.

Both documents were in relation to the SBS’s 5th May ’88 Board Room coup staged by John O’Neill and the merger agenda carried at that meeting.  O’Neill had made his play and was now being put to the sword by the legal entrapment he had invited when he went to Premier Greiner and gave undertakings that he could get the merger between the SBS and SBNSW done. This merger was far from over and the following documents tell why.

Minister Peacocke felt strongly enough about the ‘conflict’ – he was particularly concerned in the way the SBNSW were able to control the outcome of events independent from the SBS members.   He believed the members should have a say in the fate of the SBS and given the Solicitor General’s opinion’s received on the 9th May ’88 and the 17th May ’88 addressing the ‘conflict of interest’ – Minister Peacocke was left with no other option other to intervene on behalf of the SBS members.

The Ministers actions in submitting this Amendment Bill forced Premier Greiner to back down over the SBNSW plans to merge with the SBS.     Minister Peacocke stood up for the SBS Members against his Premier and the SBNSW Executive who were intent in perpetrating a fraudulent act.  It is absolutely amazing that this flawed agenda survived through three NSW Premiers – Wran, Unsworth and Greiner – and the Attorney General’s office, the Solicitor General’s office – all similarly and co-jointly ignored throughout their respective terms in office  this same ‘conflict of interest’ that existed from the outset.

The first Image is a copy of the Attorney Generals response to Greiner’s request that he look at the Proposed Minister Peacocke Amendment Bill –

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Paragraph (2) clearly gives the Premier reason to question O’Neill’s undertaking and ultimate purpose.  The above legal advice was received some two months after the NSW election – and after a meeting with O’Neill shortly thereafter when the merger agenda between SBNSW and the SBS was first discussed and agreed to by the Premier.   If Greiner was not now concerned at the events unfolding – then his involvement becomes as premeditated as was O’Neill’s purpose.

The Amendment Bill from Minister Gerry Peacocke appears below:

The Amendment Bill had a cover letter to the Cabinet Secretary – Mr H Batty –

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The Amendment Bill – Page 1

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The Amendment Bill – Page 2

It is clear from the above Clause 2.1-2 that Minister Peacocke was trying to defend the SBS from what he knew were the intentions of the SBNSW and his Premier who had given O’Neill approval to take the action he undertook.

Minister Peacocke proposed an amendment to the Act to forever protect the SBS and other Building Societies from a similar situation.  This is an important piece of incriminating evidence –

Little did Mr Peacocke know that Clause 3.2 would be a defining moment in his time as the Minister for ‘The Office of Fair Trading’. It was only a matter of three months later that Mr Greiner asked him to overlook his proposed Amendment.

The history becomes very convoluted here – because of the proposed Amendment – Greiner was force to back down.  Firstly he knew that if the Amendment Bill went through the SBS would be lost to the SBNSW forever – it would mean that the Review Committee would have to look at the merger and or sale before and deal could be struck.  Greiner received advice that this would not be a suitable outcome as it would have made any deal relating to the SBS would be under scrutiny.

This forced a rethink and  the merger between the SBNSW and SBS was abandoned – within a week of the Attorney General’s advice – O’Neill and Greiner went a different path and did an ‘in principal’ deal for the sale of the SBNSW owned SBS ‘fixed-capital’ to St George. This sale was kept quite all through this period and was not released until all sale parameters had been taken care of.

Peacocke’s Amendment Bill never made it to the House – yet when Greiner came calling weeks before the sale to ST George was about to be put to the SBS Members – he asked Peacocke to by-pass any review of the proposes sale of SBS to St George – Peacocke turned his back on the SBS members and shareholders.

The question is why? And to what purpose given his prior request to have all Building Society sale subject to a Review Committee audit to protect the members interests.

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The Amendment Bill – Page 3

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The Amendment Bill – Page 4

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The Amendment Bill – Page 5

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The Amendment Bill – Attachment “A-1”

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The Amendment Bill – Attachment “A-2”

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The Amendment Bill – Notes Accompany Cabinet Minute Page 1


These notes that accompanied the Bill revealed the real reason why Minister Peacocke was concerned about the merger.  Refer points 4-7.

As to the point made in (6), The Macquarie report will be addressed in another update – but in the context of the clause there is provision in the Co-Operations Act in Part 3, (Incorporation), Division 2, (Members and Funds), Section 52 which states:

“52. A Society may, if authorised by its rules, purchase out of its reserve fund any share of a member in the society, provided that the shares so purchased in any one year shall not exceed one-twentith of the paid up capital of the society.”

This clause if the SBS members had the option to enforce it – would have clearly put a clamp on O’Neill’s plans to get his hands on the value of the SBS reserves – some $60 million and any additional market valuation attached to the SBS’s value as a going concern.

This clause [52 above] – was a way in which the SBNSW could have recouped their original capital outlay for their ‘fixed-capital’ ownership.  The par value of the ‘fixed capital’ was $3,049,075.  $3,000,000 of this equity came from the capital gain from a Pitt St property purchased when the original Tamworth Building and Investment Society moved its headquarters to Sydney in 1976-77.  The building was sold in 1982 and realised a $3,000,000 profit which was converted to SBS ‘fixed-capital’ at 600,000 shares @ $5 a share.  So in reality – the Bank never put up any of its own cash to become the owner of the fixed-capital.  The profits from the sale of the Pitt St building were retained earnings and belonged to the shareholders – at that time the SBNSW were the shareholders having purchased all the outstanding shares prior to the property sale.   That transaction probably needs to be investigated as well.

If the SBNSW wanted to exit the SBS when the merger came unstuck in late May ’88, the rules of the Society and the relevant Act allowed it to do so by taking a twentieth of the retained earnings/capital.  The SBNSW and NSW Government did not elect to do this.  In LAW – the ‘conflict of interest’ already was already exposed by the Solicitor General’s and Crown Solicitor – and meant the SBNSW and NSWG acted against the interests of the SBS members and advice from the best legal advice available – and in doing so acted blatantly and without any regard for the SBS members interests.

Instead – and when the merger unravelled – the SBNSW and NSWG elected to use the value of all the SBS retained earnings, some $60 million – sell the ownership of what the ‘fixed capital’ represented – control over the SBS Board.  This was the SBNSW and NSW Governments view, but  Minister Peacocke saw through the legal issues and put a stop to the merger – but rolled over three months later when the sale to St George happened.

This was a moral fraud to begin with – and turned into a corporate fraud when the SBNSW and NSWG became desperate to get their hands on the SBS reserves.

Additional research showed that the SBS had paid in excess of $4 million in dividends to the SBNSW since 1982 – more than 100% of the fixed capital face value.  Under the provisions of the Act and the rules of the SBS, there were only Rules related to ‘Winding Up’ – there were no SBS rules relating to a ‘transfer of engagements’.  This meant the Legislative Acts became the rules under which merger/sale could proceed.

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The Amendment Bill – Notes Accompany Cabinet Minute Page 2

Note Re Point 7.

The SBS reserves at the end of May ’87 were $39.121 million, as at the end of May ’88 they were $60.726 million which included a provision of $5 million made by the SBS Board after the May ’88 result was announced.

This provision was stated as having been made against the SBS Treasury portfolio. Yet, at the end of May ’88 the SBS Treasury portfolio had a substantial revaluation profit.  It is believed that this provision was made to provide for and offset future cost and expenses related to the merger/sale agenda and perhaps for inducements made to parties who were coerced into voting in favour of the SBNSW at SBS Board level – and for other key personal who’s allegience and support was required.

These retained earnings belonged to the SBS Members and this was the Ministers concern over the proposed merger.   The SBNSW believed that these retained earnings belonged to them because they owned the ‘fixed-capital’ and controlled the Board.  Surely one can see how flawed this thinking was – and this from consecutive Premiers and their legal advisors …

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The Amendment Bill – Notes Accompany Cabinet Minute Page 3


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The Amendment Bill – Attachment “A:”

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The other clincher in how far the NSWG and the SBNSW went to complete the FRAUD and abuse their ‘conflict of interest’ position – is the personal letter from Greiner to Peacocke prior to the SBS AGM meeting to vote on the SBS sale to St George – that letter is linked here and included is Minister Peacocke’s response and commentary.

These two letters do more to incriminate both Greiner and Peacocke in the FRAUD than any other correspondence. Almost everything Greiner proposes as a benefit to the SBS members and shareholders is a misleading and false assertion – it is a dishonest document and for Peacocke to agree to the request gives reason to believe that this was a conspiracy with many players.   The SBS members got well and truly screwed  and presents the case for John O’Neill to be named as an ‘evil’ person.

There are some 1500 odd documents held that cover this event – from legal opinions – to O’Neill’s whiney letters to the Registrar as to why he should not be dismissed as SBS Chairmen – to SBS minutes – SBNSW documents – Annual reports – trading summaries – Audit reports – OFT investigation reports, and minutes of their Administrative meetings – the list is lengthy and exhaustive.  Piecing it all together has taken time and with the research largely completed – even Newspaper archival records have played their part – it is now left for O’Neill and company to answer a lot of incriminating questions when this whole corrupt and sordid affair becomes fully exposed.

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Link to all previous chapters for –

“Human Evil Exposed – John O’Neill (CEO-ARU)” – The SBS Story

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The EYE-BALL Opinion … Without Prejudice …

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  1. League Leg End
    January 3, 2012 at 7:51 am

    This all makes me wonder about the signing of Lote Tuqiri and Wendell Sailor by ARU for ridiculous sums and ultimately tearing up their contracts. Junior rugby always said the money would be better spent on developing grass roots. Why is the gap between Super Rugby and domestic competitions so vast?

    It is like a wall street movie meets an episode of Yes Minister. Totally mindless greed and ego.

    Good Post

  2. Tamworth Member
    January 3, 2012 at 7:13 pm

    I vaguely remember some of this at the time it happened. I never thought it went so deep. We voted for Bruce Treloar as a Director, he was local and had our support.

    Some of the information here now makes sense, we all felt good about the State Bank not getting us, but St George looked a better deal. From what you’ve provided we never had any say. Of course we would have preferred to stay independent. Looks like you have done a good job getting to the bottom of the matter, but isn’t it a bit late.

    Hope you get a good result.

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    June 11, 2012 at 12:39 pm

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    July 6, 2012 at 10:44 am

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  5. Ricky Heydt
    July 15, 2012 at 8:41 pm

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  6. November 16, 2012 at 9:33 am

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