EYE-BALL’s Human Evil Exposed – John O’Neill (CEO-ARU) … Part 3

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Human Evil Exposed –
John O’Neill (CEO-ARU) … Part 3


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 3 commences … The 1931 Amalgamation Agreement …

Let’s put some sober perspective to the events thus far – the Document Uploads  are incriminating – and the actions of the NSW Premier and his Minister during 1981 – ’82 warrant closer inspection by Law Authorities.  But in reality what harm did they do at the time?It was a ‘Clampet’s’ conspiracy based on a 50 year feud with the other ‘hillbilly’ that had the Federal Government at their back.

The real harm came later when Premier Greiner took over from Premier Unsworth who succeeded Premier Wran – and that first call was the SBNSW MD – [O’Neill] – coming cap in hand wanting leave to merge the SBS with the SBNSW … as was his perspective in what was supposed to happen after the 1931 Agreement was rescinded.

O’Neill took over from Whitlam and even that process was dictated by ‘political influence’ – the 14 odd candidates in line before O’Neill who as the SBNSW Company Secretary – has opportunity to see all the other candidates resume’s before he submitted his own – even that process was corrupted … but Mr O’Neill who according to his recount of the event – ‘performed well in the interview process’ to leap-frog all the other candidates – as if that would be enough to become the MD of a Bank.

Well – it can be said the SBNSW got what it deserved – an MD with no Banking knowledge or experience – and a political appointee who was no Nick Whitlam.   It is easy to say that O’Neill ran amuck with the thirst for power the position gave him, and as so often happens when people overreach their ability – O’Neill was in trouble within months of the appointment.  He just had no head for understanding Treasury functions and big ticket Banking.   If the SBNSW was a public entity – smart players would have shorted the stock with O’Neill’s appointment …

This walk down memory lane is important to gather an understanding of what was slight of hand oversight by a Premier and other Government agents and what was all overkill.   The 1978 – ’82 formation of the SBS was flawed in so many ways – and should never have been allowed to happen as it did.  Just what part the Minister of Co-Operatives had in facilitating the flawed structure can be seen through the document uploads – had he not been serving as ‘Special Minister assisting the Premier’ … as well as the Co-Operatives Minister – the outcome may have been different.

To expand on what the 1931 Amalgamation Agreement meant to the SBNSW – [Rural Bank and Government Savings Bank of NSW (GSB) – as it was known previously] –  the motives of why the CSB and Federal Government played hard-ball have to be understood – the following is a timeline of these motives –

  1. First off the 1931 Amalgamation Agreement – that was the CSB and the Federal Government wanting to get their hands on the Government Savings Bank [State Bank] – the Introductory Judgement link upload would have explained all that.  How they did it was tricky and in all honesty – no one alive can tell it like it really happened.  From the research undertaken thus far – it was probably more about personalities – Jack Lang being the NSW Premier and bully – and Prime Minister Scullin and the CSB Commissioners wanting to take him down a peg.  But let’s live with the idea that the State Bank got a raw deal out of the 1931 Amalgamation Agreement – and as Political beasts go – Jack Lang was an elephant in the room and a tough nut to handle.

A perusal of the Australian National Archives yields some colourful events in Jack Lang’s career, and it is easy to form the opinion that he was a Union Thug among many other things.   With a booming voice and strong following he didn’t take prisoners – the term ‘Lang’s Gang’ is littered throughout this historical reference library.    For him to have even become NSW Premier was an achievement given his origins.   In the big league of Federal and State politics he would have been easily out-matched – and this proved so in this dispute over the GSB closing its doors.

  1. For nigh on 50 years – [1931 – ’81] – the State Bank sat back and received 50% of all the CSB profits from its NSW operations.  This was a tidy sum – and the table below gives you some idea of the annual contributions from the CSB to the SBNSW … and the grand total up until 1981 was $122 million.
Date: SBNSW Share of Profits (£’s up till 1965. converted to $’s^2) Date: SBNSW Share of Profits (£’s up till 1965. converted to $’s^2) Date: SBNSW Share of Profits (£’s up till 1965. converted to $’s^2)
31-Dec-31 $119,222 30-Jun-48 $885,842 30-Jun-65 $2,062,290
30-Jun-32 30-Jun-49 $837,920 30-Jun-66 $2,567,618
30-Jun-33 30-Jun-50 $872,708 30-Jun-67 $1,720,517
30-Jun-34 $147,870 30-Jun-51 $946,242 30-Jun-68 $1,616,997
30-Jun-35 $313,892 30-Jun-52 $901,718 30-Jun-69 $922,798
30-Jun-36 $457,260 30-Jun-53 $905,070 30-Jun-70 $1,201,595
30-Jun-37 $434,896 30-Jun-54 $1,200,736 30-Jun-71 $2,555,362
30-Jun-38 $393,790 30-Jun-55 $1,104,916 30-Jun-72 $3,219,100
30-Jun-39 $432,908 30-Jun-56 $1,051,934 30-Jun-73 $3,633,870
30-Jun-40 $519,178 30-Jun-57 $788,772 30-Jun-74 $2,058,772
30-Jun-41 $514,722 30-Jun-58 $1,081,592 30-Jun-75 $3,029,531
30-Jun-42 $995,786 30-Jun-59 $1,014,142 30-Jun-76 $7,780,872
30-Jun-43 $392,598 30-Jun-60 $1,121,862 30-Jun-77 $10,124,000
30-Jun-44 $498,782 30-Jun-61 $1,284,216 30-Jun-78 $12,214,000
30-Jun-45 $802,174 30-Jun-62 $554,156 30-Jun-79 $12,966,000
30-Jun-46 $870,908 30-Jun-63 $1,357,836 30-Jun-80 $13,675,000
30-Jun-47 $880,694 30-Jun-64 $2,412,096 30-Jun-81 $14,771,000
Total Sum 1931-1981 = $122,215,760

Just to further put this number into perspective – the CSB’s 50% profit hand-over for the ’82 – ’87 period was $138 million – which made up a large part of the $330 million settlement the CSB paid over to the State Bank coffers under Court ordered compensation.

Savings Banks were becoming more profitable and this was recognised by the SBNSW and Premier Wran – they wanted a shot at the profit pool and the SBS became their ‘pawn’ in the game to get rid of the 1931 AGreement.   The increased profit contribution during the late 70’s as shown above confirms this.

How these numbers actually compares with the State Bank’s Trading Bank operations – [Rural Bank as it was known at the time] – overall performance and profit results is not known.  The State Bank records have been a hard act to track down – first the sale to Colonial Mutual and then to the Commonwealth Bank (CB) – the CB have some records and the research is still awaiting an outcome decision on the Legal documents covering the 1982 – ’87 Court trial, and some of the State Bank records that relate to the Colonial Mutual takeover – if they have them.

On documents – Westpac (WBC) – were just outright assholes and never even wanted to talk about what documents they may have had, or it they would agree to share them.  They came into the equation when St George Building Society took over the SBS, and then became St George Bank before they were taken over by WBC.

I can understand why WBC don’t want to play the game – their takeover of the SBS has legal uncertainty in Law as pointed out through the document discovery and Zombie-Leaks uploads and comments made to those documents.    How anyone could figure how to unwind or determine how to settle something like that is for Lawyers and smarter people – if it can be done at all – and would you want to even try?

The State Bank’s reserves at the beginning of 1988 shows  reserves of $651 million.   These reserves were up from $359 in 1984 and $607 million in 1987.  It would appear that the NSWG got most of the $330 million settlement from the CSB.   This is hard to understand – and what did the NSWG do with these funds?  There is another explanation – the SBNSW made heavy losses on Bank loans in the aftermath of the ’87 crash – perhaps the $330 million was spent covering these loses ans the $44 million increase in reserves in the 1988 accounts represents the unused portion of the $330 million – this scenario would mean the NSWG never received any of the $330 million except for costs to cover its own legal endeavours.   Documents that explain how the $330 million was disbursed have continued to evade the researcher’s efforts.   It is not that important – the CSB paid out and the NSWG got value either directly or as a substitute for bailing out the SBNSW in a time of crisis.

  1. History once again teaches us – the Commonwealth Bank has been involved in many mergers, some of which have brought records pre-dating the establishment of the Commonwealth Bank itself. These mergers include:
  • 1913: State Savings Bank of Tasmania (1902-1913) – incorporating:  Post Office Savings Bank of Tasmania (1882-1902)
  • 1920: Queensland Government Savings Bank(1916-1920) incorporating:
    • Moreton Bay Savings Bank (1856-1865)
    • Ipswich Savings Bank (1861-1866)
    • Toowoomba Savings Bank (1862-1867)
    • Government Savings Bank of Queensland (1865-1916)
  • 1931: State Savings Bank of Western Australia(1926-1931) incorporating:
    • Government Savings Bank of WA (1906-1926) which had previously incorporated Post Office Savings Bank of Western Australia (1863-1908)
  • 1931: Government Savings Bank of NSW(1871-1931) incorporating:
    • Savings Bank of NSW (1832-1914) which had previously incorporated NSW Savings Bank/Campbell’s Bank (1819-1833) and Port Stephens Savings Bank (1830-1832)
  • 1989: ASB Bank Ltd(1987-date) 75% holding expanded to 100% in 2000, incorporating:
    • Auckland Savings Bank/ASB Trust Bank (1847-1987)
    • Westland Bank
    • Sovereign Ltd (1989-date)
    • Retail stockbroking and fixed income operations from Warburg Dillion Read (1997-date) which had previously incorporated S G Warburg & Co and Dillion, Read & Co
  • 1991: State Bank of Victoria/SBV
    • (1842-1991) formerly Savings Bank of Victoria/SSB and Savings Bank of Port Phillip
  • 2000: Colonial Limited, formerly Colonial Mutual(1873-2000) incorporating:
  • Trust Bank (1991-1999) formed out of a merger between Hobart Savings Bank/Savings Bank of Tasmania (1845-1991)
  • Legal and General, Australia (1953-1998)
  • State Bank of New South Wales (1931-1994), formerly the Rural Bank
  • Prudential Corporation – Australia & New Zealand (1925-1998)

When one looks at this list of mergers and amalgamations – the Commonwealth Bank pretty much got whoever they wanted starting with the Savings Banks of Tasmania, Western Australia, and Queensland before they took over NSW in 1931.

The demise of the SBNSW despite all efforts to stay afloat post the ’87 crash, eventually folded like a cheap tent when the $1.8 billion in losses became too much to handle.  They first went to Colonial Mutual and then the CB … a bit like the Canadian Mounties – whose motto is ‘they always get their man’ – took another 70 years to finally swallow up what remained of the SBNSW as a part of Colonial Mutual.

In some regards – one has to wonder what was all this posturing by the NSWG and SBNSW was about in the period 1976 – ’82 – and then through the Court case and appeals process up until Dec ’87.  Given the CSB to SBNSW profit contribution the 1931 Agreement guaranteed – and the ’82 – ’87 contribution under that agreement being $138 million – the hindsight view would have to be that the SBNSW would have been better off continuing to receive the 50% from the CSB … as opposed to pursuing the whole SBS exercise …

The CSB were Bankers – the SBNSW were wannabe Politicians playing at being Bankers – and history proves this.

As all State Bank’s go and before their demise  – they were the most politicised of all Political appointments – there is no doubt John O’Neill was political given his family background.  His knowledge about Banking was his employ at the SBNSW – serving in their Legal Dept under Paul Kearns – and then as Whitlam’s lap-dog from 1981.   Whitlam had Banking credentials – bloody fine ones at that – and he was a ‘blue-blood’ in Labour Party terms.  At this stage O’Neill was a ‘pimple’ – he clutched onto Whitlam’s curtails learning and being the ass-bunny looking for advancement … in the early days O’Neill was a babe in the game – both in Banking experience terms and Political savvy – yet by the time Whitlam’s term expired – O’Neill was in his mind the next in line to succeed.  EGO’s are the cause of all failures – a famous statement made in a ‘Dirty Harry’ movie says – ‘a man has to know his limitations’ … for John O’Neill those limitations have been exposed many times in a career spanning Banking, Sports Administration in ARU and Soccer, NSW Tourism Ambassador, and whatever else – yet his failures in some of these positions have never really been exposed in a mainstream way.

Small men try to puff themselves up to cover their insecurities – Whitlam was always the elephant in the room – O’Neill did his best to measure up – and in his eyes he made good when he received the SBNSW MD appointment.  What he did once he got there is the reason for this expose into why John O’Neill is worthy of the title – ‘Human Evil Exposed’ …

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Part 4 … continues … see link below …

Link to all posted chapters for –

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

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The EYE-BALL Opinion … Without Prejudice …

  1. Gerry Hatrick
    January 10, 2012 at 12:04 am

    The mind is still boggling. Neglience or incompetence.

    If you want to do some more background look up ATO v Cablemakers (SBNSW).

    Macquarie as advisers saw vast old machines at Cablemakers written down to 0 for depreciation purposes, and advised them to sell and leaseback same machinery so Cablemakers claimed a tax deduction on lease payment, and financier (SBNSW) claimed a depreciation on the assets. Macquarie were paid a success fee and walked away, and ATO would not allow the depreciation to SBNSW or lease payment to Cablemakers.

    That was the type of nonsense SBNSW was into when so much value was destroyed. Then there was the SBVic and SBSA type lending when buying market share was all that mattered. As you have an inherent State Government guarantee, that was the Crash of 1991. Why was there not a Royal Commission? That would have been under Greiner’s watch and caught the Labor Government pre 1988 just as stupid and complicit.

    Ot is all too much and tends to show why we have no belief in government. They could not organise a snag at a butchers picnic.

    Keep up the expose.

  2. Tamworth Member
    January 11, 2012 at 9:30 am

    This has been fasinating reading Eyeball. Why don’t you take it to ICAC or the Premier’s offiice?

    We never wanted the State Bank, and when the Tamworth Building and Investment Society went to the State Bank, a lot of people left. They never understood the Co-Operatives objective and the TBIS lost its soul.

    Keep up the good work.

  3. Greg Bates
    January 11, 2012 at 7:19 pm

    I might yet write a book on the stupidity of rural bankers running amuck with high credit delegations, but whatever I say I’ll end up in court. I still get a giggle out of just one, minor incident which speaks heaps – and this was when I uncovered the “sale and lease back of dams”!

  4. January 11, 2012 at 8:20 pm

    Thanks for the comment Greg … I remember you well – became the General Manager Finance during the Audit of the SBS Treasury by O’Neill’s hatchet men in April ’88. Yes the SBNSW was up to some pretty ‘shonky’ stuff hoping like hope that the ATO and other Administrator bodies would turn a blind eye … did they win any of those cases that ended up before the courts …

    Please if you have a tale or two – send me the notes and I’ll post them for you …

    EYE-BALL…

  5. Ola Opatrny
    July 20, 2012 at 3:45 pm

    Thanks for helping out, superb info .

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