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EYE-BALL NovelZone’s Zombie-Leaks – 1982 Documents – September – Part 4

EYE-BALL Zombie-Leaks –
1982 Document Uploads – September – Part 4 -.
Updated 9th Jan 2012
Hello – this page forms a part of the Document upload database as a part of the State Bank of NSW – (SBNSW) and NSW Government’s – (NSWG) Corporate RAPE of the State Building Society – (SBS) in 1988.

The Documents linked below were largely obtained under FOI applications and relate to the SBNSW and NSWG efforts to get the entity structure right – both in terms of the Building Society Acts i.e. there were three NSW Acts in play – 1901, 1923, and 1967 – and the mix sought was to allow the SBNSW and NSWG to retain complete control over the Management and Board of the SBS and be able to claim ownership.

The sum total of all these documents go some way to exposing how pressure was bought to bear on the Office of Fair Trading and the Minister, the Registrar, and the Deputy Registrar.Below the table of links – some of the image files have been pasted and commentary is made as to what the Letter means in the overall scheme of the SBNSW and NSWG’s intentions.

Uploaded Documents – 1982 – Part 4:
Date: Link: Information:
08/01/2012: Pre Sep ’82  – PDF

Pre Sep ’82 – Word
(17Mb …)

Sep – ’82 – PDF

Sep – ’82 – Word
(26mb …)

The documents included in this file [Sep ’82] – pertain to the final correspondence between SBNSW, Dept Co-Operatives, RIBS and SBS before they all merged.[Please note – the documents included in the Sep-82 files at left are in addition to the Pre-Sep ’82 files.]



This internal memo produced on behalf of the Dept Co-Operative Societies and intended for the Minister [Sheahan] – and authored by the Director [Baker initialed on behalf of] – gives an insight into some of the hostility felt by Co-Operatives staff – [refer page 2 parg. 1 – highlighted] – it also gives leave to believe that the SBNSW were pressuring Co-Operatives staff and were allowed to do so with the forbearance of the Minister [Sheahan] under instruction from The Premier – [Wran] – to let the SBNSW have their way in how they wanted the ‘SBS entity’ structured and in avoidance to how all other Building Societies were formed under Legislative Acts – namely the new 1967 Building Society Act.

The observations made in the third parg. of page 2 – that – “the Government would have problems with this new arrangement” … were poetic indeed.

This was the ‘Paul Kearns’ show as Legal Council for the SBNSW – nowhere in all the FOI documents received is there legal opinions from the Crown Solicitors office, nor the Attorney General about the legality of this construct – in fact there was a request from the Co-Operatives Dept that they needed to sight a ‘legal opinion’ that the proposed arrangements did not breach any ‘Trade Practices’ – please see below for this document.

It could be that any Legal opinions sought might be in the Premier’s records, or minister Sheahan’s records – these were not available under FOI – but should become available this year under the 30 year  rule.



This document was from external Solicitors and was a rubber stamp issue required by the Co-Operatives Dept.  It is so surprising that the Co-Operatives went this far – yet sought no opinion from the Solicitor General over the proposed structure of the ‘entity’.  Given how Minister Peacocke did just that in May 1988 – and foiled the merger between the SBNSW and SBS – all over the ‘conflict of interest’ issue – it is easy to suggest that the Minister [Sheahan] – did not bother to get a legal opinion for fear that he would have to disappoint the Premier – the SBNSW Executive [Whitlam] – and their Legal Counsel [Kearns] – for fear that what they were doing would be revealed to be a breach.

This has to bring very high suspicion that all parties knew what they were doing breached so many statues in relation to ‘conflict of interests’, Director and CEO responsibilities, and complete disregard for Building Society members and their rights as members of a Co-Operative Society.   This is a matter for Law, and the term – ‘natural justice’ leaps out like a bear with claws engaged …  someone needs to bring these pillars of society to account – they believe themselves to be above the Law … this was NSW Premier Wran and his Co-Operatives Minister, SBNSW Corporate Directors and SBNSW MD, and attending staff – i.e. Paul Kearns and all the parties who inherited the position through three Premiers … all in on a scheme that ultimately led to the FRAUD and THEFT of some $75 million of value for the retained earnings belonging to SBS members.



In this response to the Dept Co-Operatives, the SBNSW Legal Counsel Paul Kearns tries to set out the reasons for the SBS to be incorporated under the 1901 Act and not the 1967 Act.  Registration under the 1923 Act lent specific privileges that the ’67 Act had tried to overcome.   The comparisons with a ‘bottom of the harbour’ scheme made in the first letter above – page 2, parg. 2 last sentence – which reads –

“…It would be a terrible exaggeration to put the affair in these terms, but with all the to-ings and fro-ings and special arrangements, I can imagine a clever critic comparing the exercise with a ‘bottom of the harbour’ deal…”

… lend and allow the opinion to be formed that the Co-Operatives Registrar and his Deputy – [Horton and Baker] – were of the opinion that this was a ‘shonky’ arrangement from the outset, and that they were acting under direct instructions from the Minister to ‘get the job done’.

The pressure in this situation cannot be imagined – the Premier wants an outcome – who is going to defy him what he wants – his lap-dog Minister [Sheahan] – is forcing his staff to go against the very grain of what their Administrative role purports to be and this can only end badly one would think.

To think that this type of behaviour can be undertaken by elected Leaders without recourse – can only give rise to the belief that there have always been rules and laws for one section of society that don’t apply to everybody else.   These men were acting in a criminal undertaking – their motive was revenge over  the events of 1931 – the value of the heist was $75 million – and time statues on Government crime don’t apply …  What more is needed by the Public Prosecutor to build a case to have these men face their accusers in a court proceeding that has them all facing criminal charges?

Under the FOI application that these documents were obtained – legal opinions sought by the Co-Operatives Department would have been included if they were available – in FOI requests for later periods all legal opinions were included – so it can only be presumed that there were no documents verifying legal opinions sought by the Registrar or Deputy Registrar to confirm and ratify that what was being structured as an ‘entity’ in the form of the SBS was legal.

The illegality of the construct was later proven to be flawed when Minister Peacocke under the Greiner Government,  had everybody running for cover when he opposed the intended SBNSW/SBS merger in May ’88.  His objection to the merger was based on legal opinions sought from the Crown Solicitor’s office, and this was confirmed by the Attorney General when Greiner requested an opinion on Minieter Peacocke’s Amendment Bill to oppose and block the merger.

The underlying reason for Greiner’s humiliating defeat as quoted in these opinions were – ‘conflict of interest’ – the same ‘conflict of interest’ that was put in place under Wran, Sheahan, Whitlam, and Kearns as they all set about their revenge agenda.



This letter has no known author – its addressee is the President of the Permanent Building Societies Assoc Ltd, (PBSA) and makes reference to correspondence that this letter was responding to. What can be made for the content of the response was that the PBSA were objection to the arrangements being engaged in with relation to the formation of the SBS. Not a lot more can be said without knowing what those objections were.  Efforts to track down the originating letter are ongoing.


This concludes the 1982 Documents being made available on-line via Zombie-Leaks uploads. The next set of documents begin in May of ’88 – and they relate directly to the SBS Board room coup undertaken by John O’Neill. This is where it really gets interesting and the real FRAUD begins.

1983 through to May – ’88 have been skipped and no decision has been made whether to make these documents available.

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