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EYE-BALL’s Human Evil Exposed – John O’Neill (CEO-ARU) … Part 12 – The Sale to St George …

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Human Evil Exposed –
John O’Neill (CEO-ARU) … Part 12

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.


Part 12 commences … The Sale to St George Building Society …

The date is now early July ’88  and in the two months since the May 5th Board meeting – the SBS is now all bundled up and ready to be dealt with as the SBNSW wants.The AAPBS Advisory Review Committee handed their decision down re whether John O’Neill was serving two masters on the 24th June – the AAPBS decreed his first master was the SBNSW – and their decision for him to vacate the Chairmanship of the SBS Board was symbolic at best.

He was replaced by Paul Kearns – the SBNSW employed Legal Counsel for the Bank and someone who helped instigated the plan to form the SBS back in 1976 …

He had been O’Neill’s boss for a number of years as O’Neill completed his Law degree under a SBNSW sponsorship – his loyalty to the SBNSW and O’Neill was un-questioned and what O’Neill now wanted after his exit was what Kearns would deliver.  Kearns  was as much a part of this end-game plan as any of the SBNSW Executives who had been a part of this deal since its inception.

In this same two month period since the Boardroom Coup – and whilst this banter between the Regulators and the SBNSW kept everybody but the SBS members and its staff mildly amused by the ‘game’ being played out – O’Neill was still allowed to continue to serve in the legally recognised ‘conflict of interest’ position – and without any direct interference into what he was doing by any outside agents.

During this elapsed time-frame – he had the time to ensure and cement the sale/merger deal with St George to the exclusion of all other interested parties.  Of course there were discussions with Premier Greiner about other interested SBS bidders, and his advice to Premier Greiner – ‘there was no better deal on offer than the one with St George’.

What private deals were done between St George, Greiner and O’Neill to so discharge O’Neill’s fiduciary responsibilities as the SBS Chairman is not known – if any – but to so disregard the SBS members and staff and their rights according to NSW Statutes, had to have taken some tremendous incentive.  To name some of the already raised issues that could be considered motive include:

  • … the on-going personal feud between O’Neill and Cleary,
  • … the publicly disclosed personal vendetta to ruin the SBS Treasurer over what O’Neill believed when he read the Phil Gray Audit Report,
  • … the SBNSW’s own precarious financial position due to the on-going impact of the Oct ’87 global equities crash,
  • … and the most significant – O’Neill’s need to get his hands on the SBS reserves to bolster his Bank’s equity position – which had been added to by the efforts of the the SBS Treasury and amounting to some $25 million.

On these last two points – at this time the SBNSW was near enough to being technically insolvent – and were not the only Australian Bank to be in this position during this period.  Whether O’Neill’s subordinates were fully cognisant of the diminishing values on securitised assets and marking them down accordingly is conjecture.  There always was and still is a lag in Banks reporting such occurrences … all the while hoping that market corrections are a temporary thing and that valuations will recover.

The SBNSW was a special needs Bank – they were not Governed by Australia’s Central Bank – the RBA.  They had a State Government mandate to operate and carried their guarantee.  The reporting requirements by Banks operating under the RBA auspice had different reporting procedures than the SBNSW and all the other State Banks.  It can be said this was a determining factor in why all the State Banks ended up on the scrap-heap in some form or other.

The SBNSW held out the longest – and that is not to say that the SBNSW was not insolvent for a very long time before they were able to sucker up to someone to buy them out – i.e. Colonial Mutual in 1995.  More on this in a later post.

Now back to the July ’88 period – it is not known whether O’Neill as a nondescript Banker had any understanding of what was happening in the Australian Banking sector during this turbulent period.  He would have been aware of the same rumors circulating the markets about the State Bank’s of Victoria and South Australia were now talking about the SBNSW.   This pressured O’Neill even more to get a successful outcome from the SBS and how the SBNSW disposed of the SBS after the merger came unstuck.

O’Neill needed the SBS reserves in his Bank’s pocket to boost his own Bank’s solvency.  This is the FRAUD, SWINDLE, whatever you want to call it – the SBNSW and NSWG via their Premier in Nick Greiner involved themselves in a conspiracy to defraud the SBS members and staff out of the SBS reserves and goodwill value and to the tune of $75 million.

In O’Neill’s singular and catharsis type mindset – and together with all the other SBNSW Executives who were a part of this conspiracy to commit a crime – to them this was a simple exercise of transference – they had genuine belief in that they owned the SBS, and they thought any reserves the SBS had belonged to them.

In their stupidity and utterly hubris contempt for due process – and following the corrupted path nourished by Premier Wran and Minister Sheahan who structured the SBS – they were not prepared to accept any umpires decision that did not agree with their purpose.  An to that end – they collectively chose to ignore and absolve themselves from their fiduciary responsibilities as SBS Directors to ensure the SBS members received fair value in any SBNSW exit from the SBS.

The SBNSW had every right to sell their fixed-capital in the open market-place – but as serving Directors of the SBS Board – did they as a block of votes, and who controlled the SBS Board – do so in the interests of the SBS members – or their employer the SBNSW?

O’Neill could not get the SBNSW over the finish line all by himself.  Any sale of a $1.6 billion entity would under normal circumstances be put to stringent and exhaustive due-diligence valuations.  Under the NSW Statutes the SBS was answerable to – such a sale option would require advice and consent from the members about what was being proposed and undertaken before any deal could be struck.  The SBNSW appointed SBS Directors elected to ignore these rights and entitlements … and were doing so against the Business and Consumer Affairs Minister’s advice.  This was still the ‘sticky’ part of the deal O’Neill had struck with St George.

Since May 5th – O’Neill had control over all the Board decisions made in how to dispose of the SBS.  He also had operational control through the appointment of the SBNSW employed Tony Howarth as Cleary’s replacement.  All the previous SBS Management had either been sacked, were on or about to be sent on administrative leave, or had been sufficiently intimidated that they were acting as if – ‘dead men walking’.

The evidence trail continues …


The continuing document trail of evidence for July/Aug is presented below with internal page links to help navigate around the post.  They again represent the ongoing letter exchanges between the SBNSW and the Regulatory authorities as the countdown to the Aug 22nd vote by the SBS members on the St George merger/transfer of engagements – [return links provided]:

  1. 1st July: – Internal submission from Registrar to the Minister – Gerry Peacocke – re outcome of the AAPBS hearing on O’Neill’s dual Directorships …
  2. 15th July: – SBS advice to Registrar of O’Neill’s resignation from SBS Board and Chairman position …
  3. 3rd Aug: – New SBS Chairman (Paul Kearns) letter to Registrar re Sale to St George arrangements …
  4. 4th Aug: – SBS Secretary requesting Registrar’s determination re financial interests of SBS Members …
  5. 5th Aug: – Greiner request/Plea to Minister Peacocke to have him over-ride Takeover Review Committee look into sale of SBS to St George …
  6. 8th Aug – Deputy Registrar Business & Consumer Affairs to SBS Chairman [Paul Kearns] – re: ‘Transfer of Engagements’ …
  7. 8th Aug – Deputy Registrar Business & Consumer Affairs consent to SBS takeover of SBS ‘Transfer of Engagements’ …
  8. Undated: – SBS Management Information Pamphlet to SBS Members re: 22nd Aug AGM and Sale vote to St George …
  9. 12th Aug – Registrar submission to Minister re: Directors Compensation …
  10. 22nd Aug – SBS Secretary to Registrar re: notification of SBS transfer of engagements to St George …
  11. 24th Aug – Documents confirming ‘Transfer of Engagements” …
  12. 25th Aug – Unsigned Letter from Minister Peacocke to Premier Greiner re: Takeover Review Committee position – [ … after the fact – possibly fake …]
  13. 25th Aug – Registrar submission to Minister re: Transfer of Engagements … [ … after the fact documents … ]


1st July:  Prepared as at the 26th June – but signed 1st July – Internal submission from Registrar to the Minister – Gerry Peacocke – re outcome of the 24th June AAPBS hearing ..

Internal submission from Registrar to the Minister – Gerry Peacocke – re outcome of the 24th June AAPBS hearing – Page 1:


Summary information on data already presented in past uploads …

Internal submission from Registrar to the Minister – Gerry Peacocke – re outcome of the 24th June AAPBS hearing –  Page 2:


AAPBS Members – Jack and Shields – were the CEO’s of Illawarra and St George Building Society’s … their exclusion was demanded by John O’Neill … he claimed they would have been serving in a ‘conflict of interest’ position as both were bidding for the SBS … [click here to read O’Neill’s demands – Page 1 – Page 2 – O’Neill’s demands appear on page 2 – opens in a separate windows.]

A tricky argument considering the reason O’Neill was fronting the AAPBS was because of his own ‘conflict of interest’ position – and he was still holding onto the secretive information about having already done a deal with St George in principle to buy the SBS ‘fixed-capital’ ownership from the SBNSW.

This presentation to the Minister highlights the successful mis-direction game the SBNSW and NSWG were playing with their own Regulatory Authority.  There is no way O’Neill would have signed off on the deal with St George [Shields] – without having Greiner’s OK to do so … that meant the Premier was not talking to his Co-Operatives Minister about the St George deal at this stage.  That may have been a payback for the Amendment Bill Minister Peacocke put up in late May to prevent the merger.

This pretty much makes the Regulatory Authorities look ineffective and lame when it comes to protecting the rights and entitlements of the SBS members as was their responsibility to do.

Internal submission from Registrar to the Minister – Gerry Peacocke – re outcome of the 24th June AAPBS hearing – Page 3


Again this is summarising the history for the Minister up to the Meme Heading – ‘The Committee’s Determination’ …

Mr Baker has shifted his position from that of the 11 May letter to all the SBNSW appointed SBS Directors to now focus on Mr O’Neill and his dual Directorships – …

  • [click here to see Baker 11th May ’88 letter in a new window]

… – this was a massive fumble under Baker’s responsibility – his Co-Operatives Investigative Report dated 16th May into the conduct and proceedings at the SBS May 5th Board meeting highlighted the way the SBNSW Directors were appointed – that they had to hold in their name at least 10 fixed-capital shares to be eligible to be nominated as a Director representing the SBNSW –  …

  • [click here to see the Investigation report in a new window – 2.5mb in PDF format – see page 2 Heading ‘Comment on Rules …’.]
  • [Use these links to see where Registrar asked O’Neill to explain the fixed-capital shareholdings –  Page 1 click herePage 2 click here  – O’Neill never responded to these questions and never fronted the Advisory Committee because he would have had to answer these questions .]


It was not revealed that each of these Directors had signed a transfer of those fixed-capital shares back to the SBNSW as a part of the deal of becoming a SBS Director – to get rid of the SBS Chairman Ken Dennewald – he had to have signed over his shares at the time of his appointment – else the SBNSW would have had difficulty in trying to sack him just prior to the SBS May 5th Board meeting.

This has been confirmed by third-party statements in that the SBNSW did hold signed transfers for the fixed-capital shares held by the appointed SBS Directors.

This was a big revelation in the Regulatory investigation Report – in effect these appointed SBNSW Directors sitting on the SBS Board did so with a gun pointed at them to ensure they voted in-line with the SBNSW wants and wishes.  This further attests to the conclusion that there was no independence in their decisions’ that purported to represented the interests of the SBS members.

There was a reason, perhaps many reasons O’Neill did not front this AAPBS Advisory Review committee.  He would have been grilled about this and several other matters raised in Registrar Bakers exchanges with O’Neill leading up to this meeting.

To be specific on this point – Registrar Baker had raised and asked O’Neill during their letter exchanges during late May through to the 24th June, to provide information on this particular aspect of the fixed-capital holdings by the SBNSW appointed Directors.  O’Neill never answered the questions asked in any of his responses.

Had this information about the pre-signed transfers been raised during the court battle between the Commonwealth Savings Bank and the SBNSW and NSWG – the whole question about control of the SBS would have disfavored the SBNSW and NSWG.  They went to great lengths to present evidence of an independent Board and a distance between the SBNSW, its appointed Directors and the Operational control over the SBS.  This revelation had it been produced at trial – could have quiet possibly altered the outcome of the $330 million verdict.

Internal submission from Registrar to the Minister – Gerry Peacocke – re outcome of the 24th June AAPBS hearing – Page 4


O’Neill did resign his SBS Chairman/Director position on the 8th July – and so advised the Registrar on the 15th July via correspondence from the SBS Secretary.  That time delay – some 25 days after the Advisory Committee advised him of their decision gave O’Neill more crucial time to prepare the game-plan for the St George sale which had to be voted on by the SBS members.

The stark reality in all this was that O’Neill decided the fate of the SBS and not its members – he decided on the sale of the fixed-capital to suit the SBNSW interests and not the SBS members interests.  This is basic corporate criminal behaviour and he should serve time because of it.

Some 24 years after the event – who is going to make sure he and his accomplices account for their actions?

Return to Top – Date Index of Events:


15th July:   SBS advice to Registrar of O’Neill’s resignation from SBS Board and Chairman position.

SBS advice to Registrar of O’Neill’s resignation from SBS Board:


SBS Secretary advises O’Neill’s resignation …

Return to Top – Date Index of Events:


3rd Aug: New SBS Chairman (Paul Kearns) letter to Registrar re Sale to St George arrangements …

New SBS Chairman (Paul Kearns) letter to Registrar re Sale to St George arrangements … Page 1:

New SBS Chairman (Paul Kearns) letter to Registrar re Sale to St George arrangements … Page 2:


Mr Paul Kearns was appointed the new Chairman at the 22nd July SBS Board meeting – he had been a part of the SBS deal since 1976 … he was the legal counsel for the SBNSW and served as second chair all during the CSB court battle.  His hands were all over this flawed SBS structure and his legal dealings in bringing it about suggest opinions about his legal credentials and ethics.  He was also the most probable person responsible for not having the NSW State Bank Act amended after the Dec ’87 decision to rescind the 1931 Amalgamation Agreement … this oversight prevented the SBS merger from the SBNSW and NSWG perspective –

The Kearns letter above is the first public announcement of the St George deal in any format – some 2+ months after a ‘in principal’ deal was struck and held secret all this time from the Regulatory authorities and the SBS members.   Up until this point the Regulators and the public were still awaiting a merger deal between the SBNSW and the SBS and all defenses to prevent this merger were prepared in this regard.  The St George deal was done in secret – and without the Regulatory authorities informed – the Premier was aware – but he did not update the Minister whilst these negotiations were in progress.  If he did in an unofficial capacity – a whole lot of other measures should have been taken by the Minister and his staff.

The SBNSW and the SBNSW appointed staff overseeing the SBS daily operations all knew the merger was off … but they never advised the Regulatory authority.

From the SBNSW perspective this St George deal was all that mattered – this Kearns letter is pure courtesy to what the SBNSW was intended to do – arrangements had been worked out with St George in how to get the deal done and get around the SBS staff supporting such a merger … Kearns makes light of this issue.

Nowhere in this letter are the SBS members mentioned …

Kearns is holding a gun to the head of the Regulatory Authority and what did the Regulatory Authority do … rolled over and let it happen just as Kearns set out in his letter.

From this point onwards – the Regulatory Authority went missing – on all the correspondence that follows Mr Baker – the registrar – and the Minister – Mr Gerry Peacocke – even though their names are printed on the letters – they have not signed them – they are all signed by a single person – the Deputy Registrar – Uri Windt.

In discussions with Dept Consumer Affairs – it was thought that the Deputy Registrar had no authority to approve any of the decisions he made.  This is a moot point some 24 years later and in view of what happened – the question still hangs there – where were Peacocke and Baker when all this went down?

Had Greiner got to them – evidence given by Registrar Baker when contacted two years ago told of his promotion and move from the Parramatta offices to the CBD …

This is when some of the the serious ‘crap’ really went down …

Read on …

Return to Top – Date Index of Events:


4th Aug: SBS Secretary requesting Registrar’s determination re financial interests of SBS Members …

SBS Secretary requesting Registrar’s determination re financial interests of SBS Members:


On the 3rd Aug SBS Chairman Paul Kearns writes to Registrar Baker telling him what the SBNSW are going to do with the SBS – on the 4th Aug the SBS Secretary follows up with the above letter.

The SBNSW needed something from the Minister – a letter approving the deal and a bypass of the Takeover Review Committee investigation into the sale of the SBS and whether it is in the best interest’s of the SBS members.  This was intimidation … the SBS Secretary Paul Gibbeson was a SBS employee – he joined in late ’87 and when the SBNSW swooped in on the 5th May he was caught in the middle of that Board meeting.

Everybody at the SBS were now singing to the SBNSW employee Tony Howarth appointed as Cleary’s successor – and the SBNSW run SBS Board.  You do not have to be too clever to understand Gibbeson wrote this letter under instruction.  The SBNSW were all about cleaning up the carnage before the merger vote.  They wanted to present as clean a slate to the SBS members when they went public about the proposed merger with St George.   This letter and the Kearns letter the day before were a part of that clean-up.

But there is more … read on …

Return to Document Index:


5th Aug: Greiner request/Plea to Minister Peacocke to have him over-ride Takeover Review Committee look into sale of SBS to St George …

Greiner request/Plea to Minister Peacocke to have him over-ride Takeover Review Committee look into sale of SBS to St George …:


This letter again puts Greiner right in the middle of the ‘swindle’ … he writes to the Minister telling him that the deal struck with St George is in the interests of ‘all parties involved’ – not the SBS members – but ‘all parties involved’.

This statement alone shows his ignorance to what was afoot – or if he did – he was as complicit as O’Neill and everybody else who put this FRAUD together. The first responsibility of the Department of Business and Consumer Affairs – including the Co-Operatives Department to whom the Premier was writing – would be the financial interests of SBS members and their reserves.  Greiner had been advised about the Takeover Review Committee in the John Down Attorney General advice sent on the 25th May in response to the Peacocke Amendment Bill.   Greiner was putting his weigh behind O’Neill’s need to have the Peacocke sanctioned Takeover Review Committee abandoned.

Greiner was aware that the SBNSW were set to receive $75 million for their $3.049 million of fixed-capital … yet the deal had placed a total $75 million on the SBS as a going concern by the SBNSW.   Where was the due diligence … how were the SBS members being protected – how were they given a choice in their self-determination – who valued the SBS at $75 million?

The SBS members were about to be offered – and remember at this stage the St George deal was not public in any formal way – the option to vote on a ‘transfer of engagements’ with St George – there was no other offer made public – yet Illawarra Permanent Building Society and the R&I Bank of WA had and were in the process of placing bids for the SBS.

This deal being served up to Minister Peacocke served only one party – the SBNSW and their owners – the NSWG – who again did not have the capital to inject into the floundering SBNSW.

This was the SBNSW’s exit strategy for an entity they formed as a prod to get the CSB into court over the 1931 Amalgamation Agreement  – they won that case and a $330 million settlement – which now looks pretty sick given the evidence produced hereto about the ‘control’ the SBNSW had over those SBNSW appointed SBS Directors.  Further – the merger had to be abandoned when the SBNSW stuffed up big-time in not having the State Bank Act amended.  This was the next best deal – to strip the SBS of its value in exchange for selling the $3 million fixed-capital.  Exactly as SBS Independent Director Bruce Treloar stated in a press conference shortly after the May 5th Boardroom coup.

And there was another windfall – all the $25 million SBS Treasury profits made during ’87-’88 were now nesting in those SBS reserves and the SBNSW wanted them as well – they did not honour the SBS Treasury Bonus pool authorised by the previous SBS Management.  O’Neill knocked it down and added the Bonus pool to the existing SBS reserves.  He was a greedy nasty little Lucifer and ‘evil’ only goes part way to describing his persona.

And now we can sit an wait for the penny to drop … who cares some 24 years later …  crime is crime right … and these persons – Greiner, O’Neill, Kearns, Thomas, Turner, Fraser, Humphries, Wran, Sheahan, Peacocke, Baker, Windt, and the many others involved should all be under investigation for their part and the role they played in allowing this to happen.

O’Neill holds an ‘AO’ – and it is an insult to all Australian’s who hold this same honour to have someone like John O’Neill on that same list.

What are the current NSW Government going to do about this expose?  That is a question that can only be answered with the passage of time.

This letter from Greiner [above] – meant three letters in three days to the Regulatory Authorities – from the new SBS Chairman acting as john O’Neill’s lap-dog, the SBS Secretary acting under duress, and now the NSW Premier – all wanting the same thing – a rubber stamp to their proposed sale of the fixed-capital to St George – and the second prize – the $1.6 billion SBS transfers its engagements to St George … and O’Neill then gets to strut and brag his success to an end-game where he seals his own rewards for getting the deal done.

Return to Top – Date Index of Events:


8th Aug: Deputy Registrar Business & Consumer Affairs to SBS Chairman [Paul Kearns] – re: ‘Transfer of Engagements’ …

Deputy Registrar Business & Consumer Affairs to SBS Chairman [Paul Kearns] – re: ‘Transfer of Engagements’ …”


This is the first of the Regulatory responses – note the signing by the Deputy Registrar … did he have authority to grant the approval – the attachments referred to are still under a GIPA recovery application …

To read the section 115(6) of the 1923 Act referred  to in the letter – click here – [will open in a new window] …

It would appear that Registrar Baker and the Minister were absent/away from work – either due to illness or some other necessity … the biggest ‘swindle’ of public monies in NSW Government history is about to go down and the Minister and his Registrar – who both know what is happening – decide to send in the Deputy to do what the Minister and Registrar were not prepared to do.

Nobody is prepared to say what actually happened during this period for the moment – Mr Windt has not returned a call about these and other letter signings – Mr Baker has asked to be left alone and Mr Peacocke is suffering serious health issues … the legal advisor mentioned earlier – J.M. – has also not returned messages.

Mr Windt would not have signed this letter of approval unless instructed to do so – who gave him that discretion and what favour changed hands for it to have been done … are all questions for a Public Prosecutor or a Royal Commission enacted by the now Premier of NSW into the affairs of the then Premier Greiner and the conduct of the SBNSW Executives acting as agents of the NSW Government.

This evidence of wrong-doing has been sitting in the Co-Operatives Dept files all this time and nobody turned a page to look into it.

This is testament to a number of things – within Government there are always shortcuts taken – there are always corrupted actions – there are only degrees of corruption – and for 1000’s of years these varying degrees of corruption have made history …

Are State Governments corrupted – of course they are – are they worse than Federal Governments – that is not the question. The question is the evidence produced hereto – nobody can read all that is presented hereto and not believe that Greiner and O’Neill committed a FRAUD.

Premier Greiner himself faced an ICAC corruption inquiry that ended his term in office – the same term he was serving when this SBS deal went down.  The SBS deal was a separate issue to the ICAC inquiry.

An extract from the ICAC website had this to say [1992]:

NSW Parliament – resignation of a member of Parliament and his appointment to a public sector position

The ICAC investigated matters in relation to the resignation of a member of the NSW Parliament, and his subsequent appointment to a position in the NSW Senior Executive Service.

In its first report on this investigation, made public in June 1992, the ICAC made findings of corrupt conduct in relation to the then Premier of NSW and the then Minister for the Environment, and stated its opinion that consideration should not be given to the prosecution of or the taking of disciplinary action against any person, nor to the dismissal of any public official.

This report is no longer available online. Request the first report. [link removed]

The ICAC’s findings that the then Premier of NSW and the then Minister for the Environment, had engaged in corrupt conduct within the meaning of the ICAC Act, were the subject of litigation in the NSW Court of Appeal. The Court declared that the findings were a nullity. Accordingly, the ICAC produced a second report, made public in September 1992, to correct the record, state the effect of the Court of Appeal decision and to raise issues concerning the ICAC Act and desirable changes to it.

This report is no longer available online. Request the second report. [link removed]

The ICAC’s third report on this investigation, made public in March 1993, made 12 recommendations with respect to integrity in public sector recruitment.

This report is no longer available online. Request the third report. [link removed]

These three reports can be read using the links below:

In 2010 – an approach was made to ICAC to have the matter presented in these ‘Human Evil Exposed’ posts investigated.  A summary brief running to 400+ pages was sent outlining in similar detail without the hard evidence as been presented here.  It was explained that the evidence would be made available if an investigation was to proceed.  After some months or prodding and poking – the ICAC came back with a response.  In part that response read as follows:

ICAC Response – in part …:


You think when you take the time to set out in meticulous detail how a crime was committed – and that you have the evidence to back it up – you could reasonably expect that those responsible for Government corruption would at least want to look at the said evidence.  This response above was completely inadequate.  Even with the knowledge of a guilty history with Mr Greiner – they were not prepared to open an investigation.   in further follow ups other explanations were offered – one was that Mr O’Neill no longer worked for the Government – and that ICAC only investigation current employees of the Government.  At the time Mr O’Neill was a roving tourism ambassador for NSW Events.

ICAC’s reputation to deal with this matter failed to live up to their declared mantra –


The Independent Commission Against Corruption (ICAC) was established by the NSW Government in 1989 in response to growing community concern about the integrity of public administration in NSW.

The ICAC’s principal functions are set out in the Independent Commission Against Corruption Act 1988. In summary, they are:

  • to investigate and expose corrupt conduct in the NSW public sector
  • to actively prevent corruption through advice and assistance, and
  • to educate the NSW community and public sector about corruption and its effects.

The jurisdiction of the ICAC extends to all NSW public sector agencies (except the NSW Police Force) and employees, including government departments, local councils, members of Parliament, ministers, the judiciary and the governor. The ICAC’s jurisdiction also extends to those performing public official functions.

… as published on the ICAC website

No bloody wonder people have little faith in the ‘natural justice’ of how law is administered in this Nation … it all depends on who you are in the pecking order and whether you can buy your way out of trouble …  ICAC have been getting these post updates – and to ponder how their responding to them now is of interest.

Return to Top – Date Index of Events:


8th Aug: Deputy Registrar Business & Consumer Affairs consent to SBS takeover of SBS ‘Transfer of Engagements’ …

O’Neill to Registrar Page 1:


  • Again – the fax document referred to is under a GIPA application …  to read a copy of the 1923 Corporations Act Section 69B (1) referred to – click here –  [will open in a new window – WORD 3mb – see page 102]

There are many Sections in the 1923 Corporations Act that have relevance to this clause and interpretation may be subjective – to download full copies of the 1901, 1923 and 1967 Acts that all had bearing on the fate of the SBS – click here and go to the 26th Jan uploads.

The Letter referred to as having be sent to the SBS Members is copied below – this is now just 14 days before the SBS AGM and vote of the St George merger … as yet the Members had not been formally advised other than some speculation in the media.

Return to Document Index:


Undated: SBS Management Information Pamphlet to SBS Members re: 22nd Aug AGM and Sale vote to St George …

SBS Management Information Pamphlet to SBS Members re: 22nd Aug AGM and Sale vote to St George … Page 1:


Paragraph 3 – Mr Kearns has presented a case that all SBS interests are being served by accepting the resolutions presented.  This is an outright false statement – and can go so far as to say misleading and criminally negligent.  Mr Kearns’ fiduciary responsibilities were non existent when he made this statement … and he represents himself as speaking for the whole SBS Board – yet that Board had only one master – the SBNSW and John O’Neill acting with the approval of the NSW Premier – Nick Greiner.

There was no disclosure of the deal struck to sell the SBNSW’s fixed-capital to St George for $75 million in this pamphlet – yet in a similar pamphlet sent to SBS staff Page 3 of the pamphlet read as follows.  [This is in small print and by clicking on the image area below –  the image will be displayed in a new window where it can be enlarged – use Control & ‘+’ key to enlarge if using Firefox or Explorer Browsers…. ]

SBS Management Information Pamphlet to SBS Staff … Page 3:


The highlighted areas are of most interest – and present further evidence to the 1st June deal done with St George and other matters covered further hereto.

Back to Page 2 – as as also included in the Staff pamphlet …

SBS Management Information Pamphlet to SBS Members re: 22nd Aug AGM and Sale vote to St George … Page 2:


Mr Kearns quotes the 1923 Corporations Act – Section 69(1c) – yet there are many other Sections that he has not quoted or abided by when seeking the Rules governing the SBS to sanction what was now happening.   Both the 1901 and 1923 Acts can be viewed using these links:  19011923.

Clause 1(b) is interesting … ‘ … the setting aside of the SBS reserves …’  what it did not say was that St George had its own deal in how to recoup some of the $75 million outlay – is was selling shares in St George based on the deposit value of the SBS shares of each member – in effect the SBS members were being offered to buy back their own capital – i.e. the SBS reserves St George were putting aside in a reserve fund – were being offered back to the SBS members – not at par, but at a premium valued against the existing value of St George shares.

The clause 5 highlighted above reads: [again – click on the image to open in a new window to enlarge.]

SBS Management Information Pamphlet to SBS Members re: Clause 5 … Page 3:

The deal offered presented SBS withdrawable shareholders 100 St George shares for every $500 on deposit – at a price of $1.50 per share representing $1 par value and $0.50c premium.

To explain further – St George were offering SBS reserves back at 20% value compared with St George shares – and the SBS had to pay an additional $1.50 for each share – this was agreed to by the SBS Board as a fair an equitable deal for the SBS members with no Takeover Review committee to review the ‘fair-value’ attached to the St George bid.

For every $1 held on deposit with St George before they floated – St George members were entitled to one withdrawable share.  For every $1 on deposit with the SBS  – the SBS member held one withdrawable share.  Yet when St George valued the SBS Members deposits – some $1.6 billion – if it were to be fully subscribed/converted – St George were only offering 20% of shares in number – and the SBS members had to pay an additional $1.50 for each St George share offered.

How could anybody look at this deal and think the SBS members were getting a fair deal.   The SBS Board were criminally negligent in accepting this deal.  In the wash – it was reported St George raised some $40 million from SBS members via this equity buyback scheme – How the Minister, his Registrar, and the Deputy Registrar who’s signature appears on the 8th Aug approval letters for these deals could have allowed it to happen – gives strong evidence that something illegal happened and needs to be investigated.

In the alternative – if the SBS Board had of gone to the SBS members and asked then to buy the SBNSW owned fixed-capital – as suggested as an option in the Macquarie Bank report –  the SBS would have remained an independent entity.  Yet the SBS Board – now in the firm grasp of the SBNSW appointed Directors – never gave the SBS members any other option other than to accept the St George offer.  The SBS members were totally ‘done-over’ every which way by the actions of these Directors …  and do you think those same SBNSW Directors did not know what they were doing?

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12th Aug: Registrar submission to Minister re: Directors Compensation …

Registrar submission to Minister re: Directors Compensation … Page 1

Registrar submission to Minister re: Directors Compensation … Page 2:


This is interesting – Director’s Alwyn Thomas and Warren Osmond were not to receive any Director’s termination fees – they were the nominated Directors to go on the St George Board.

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22nd Aug: SBS Secretary to Registrar re: notification of SBS transfer of engagements to St George …

SBS Secretary to Registrar re: notification of SBS transfer of engagements to St George … Page 1:


Within the wording of this letter – an interesting scenario comes forth …this letter talks about the withdrawable shareholder Directors – Messes Crib, Osmond, Treloar, and Alwyn Thomas – two are to be appointed to the St George Board – i.e. Osmond and Thomas and the other two to receive a $12,000 compensation package.  The other interesting point is how the four SBNSW Directors on the SBS Board were paid out if at all.

They were each holding a minimum of 10 shares – in total there were 609,815 fixed shares – how these shares were divided and how held is not known – however if each of the SBNSW appointed Directors were holding their allotment of shares and the deal done with ST George was that St George pay $118 for each of these fixed-capital shares – did the SBS Directors employed by the SBNSW get to keep their portion of the $75 million?

These shares were controlled and monitored by the SBNSW internal registry – how wide were these shares distributed within the SBNSW Management – did any of the SBNSW Board own fixed-capital shares in the SBS – how about O’Neill after he was kicked off the Board did he still own any shares – these are very relevant questions that need answers.

Was this a private ‘swindle’ where only part of the $75 million proceeds went to the SBNSW and NSWG – and the rest divided up among those at the top of the tree and who helped get the deal over the line?

Return to Top – Date Index of Events:


24th Aug: Documents confirming ‘Transfer of Engagements” …

Documents confirming ‘Transfer of Engagements” … Page 1:

Documents confirming ‘Transfer of Engagements” … Page 2:

Documents confirming ‘Transfer of Engagements” … Page 3:

Documents confirming ‘Transfer of Engagements” … Page 4:


The DEED is done and the SBS is no more …

Return to Document Index:


25th Aug: Unsigned Letter from Minister Peacocke to Premier Greiner re: Takeover Review Committee position – [Possibly Fake]

Unsigned Letter from Minister Peacocke to Premier Greiner re: Takeover Review Committee position … Page 1:


To see this Letter without ‘cropping’ effects please  – click here – it will open in a new window.

This will confirm that there was no letterhead or date stamp on the letter.   You will see the ‘File No: 88/08-25’ … this is the date stamp used on all Department files during this period – so it is safe to say that this letter was drafted on the 25th Aug 1988 – a full three days after the ‘transfer of engagements’ had happened and a day after the ‘Special Resolution’ have been sent to the Registrar for acknowledgment.

It is hard to understand why the Minister has not signed this letter – or anyone else for that matter on his behalf – perhaps this was even to ‘hot’ for the Deputy Registrar to weight into.

Unsigned Letter from Minister Peacocke to Premier Greiner re: Takeover Review Committee position … Page 2:


The last paragraph demonstrates the cheapness of the SBNSW to the end – in the 1982 merger and formation of the SBS they had Wran browbeat his Treasurer to waiving the Stamp Duty and now the Minister is giving the appearance of doing the same again – and again – the letter is unsigned.

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25th Aug: Registrar submission to Minister re: Transfer of Engagements …

Registrar submission to Minister re: Transfer of Engagements … Page 1


Now this is the ‘crowning glory’ in just how convoluted this event had become.  This is an internal memo to the Minister – written by the Deputy Registrar under the Registrar’s name and from all appearances – it agrees with the SBNSW actions. This is a complete back-flip to the Minister’ and his Registrar’s position on this matter for the last three months.

Paragraph 2 – ‘in supporting the st George proposal…’ – there is no supporting evidence to suggest the Minister or Registrar support any proposed merger/sale previous to this memo … it’s a quantum step to accept the comments in this memo … and is further put under the microscope hereto.

Check out the initials that appear at the bottom of the above page … now click here to see Minister Peacocke’s initials and handwriting in a new window … this is page two to the 6th June Takeover Review Committee (TRC) the Minister wanted structured … [page 1 is further linked below] … as you can see they do not compare – this document was never initialed by the Minister … it is not known if it had any official validity whatsoever.

Further the names handwritten in the left margin indicate who was being approached to sit on the TRC – these names include:

  • The Registrar of Co-Operative Societies or his nominee … (Chairman) …
  • ??? Robinson – Commissioner for Corporate Affairs … or nominee
  • Terry ??? – Director of the Dept Housing or nominee …
  • ??? Guest – Secretary of Treasury or nominee …
  • Jim Larkey – A person from the AAPBS or other nominee …
  • ??? McBain – A nominee of the Labour Council of NSW …
  • An Additional Member if the Minister wishes to appoint another person …

This memo – also had the clause in the first paragraph:

‘ …  The Committee would therefore be in place whenever events indicate the need for it to act.’

This clearly indicated the Minister’s position – that any move against the SBS would be subjected to the TRC procedures … yet this submission to the Minister above and 2nd page below – goes against all that the Minister has established to protect the SBS members … and signed by the Deputy Registrar – Uri Windt.

The plot thickens – this summary memo to the Minister was dated some three days after the St George ‘transfer of engagements’ went through – and 20 days after Premier Greiner’s letter to the Minister asking he not engage the TRC – the previous letter to the above and addressed to Premier Greiner with Peacocke’s name at the bottom and unsigned, and not on Dept Letterhead – also carries a date three days after the event …

Somebody within the Co-Operatives and the Business and Consumer Affairs was now window dressing on behalf of the NSWG and the SBNSW.

The intent was to try to make it look as if the Minister had averted the Takeover Review Committee (TRC) process/investigation that he had originally set up in June.  Click here to see page 1 of the  the Minister’s approval for the TRC proposed on the 25th May and signed on the 6th June – click here for Page 2.

The second page continues of the submission to the Minister’s continues …

Registrar submission to Minister re: Transfer of Engagements … Page 2


Again signed by Mr Windt as the Deputy Registrar – on behalf of the Registrar … authorising the exemption of Stamp Duty and recommending the resolutions put forward be approved.

Mr Windt has some serious questions to answer … and here are just a few …

  • why was he acting on behalf of the Registrar –
  • why these memos and letters were dated after the ‘transfer of engagements’ –
  • under who’s authority did he approve the 8th Aug letters presented above –
  • where were the Minister and the Registrar –
  • what happened to the 6th June TRC process put in place by the Minister –

… and from these will come many more questions …

Contact was made with Mr Windt in 2010 – and he was helpful at the time.  Further recent contact has been attempted and copies of some held correspondence has been forwarded with a request for him to respond – that response is still awaited.   One can understand why.

Below are notes to this memo to the Minister … they contradict the approvals given by Mr Windt on the value of the St George offer offered to the SBS members – and again it confuses the issue given what Mr Windt signed his name to when he made his recommendations to the Minister.   There also appear to be written after the 22nd Aug SBS AGM and vote on the St George merger …

Documents re ‘Transfer of Engagements” … Page 3:

Documents re ‘Transfer of Engagements” … Page 4:


This Fixed share deal make it obvious that there were concerns about the St George share offer – why was it not investigated further … if you recall Paul Kearns never advised the Registrar of this part of the deal when he wrote to him on the 3rd Aug … how could of the Registrar know what was afoot if the information was withheld.

Documents r3rd’Transfer of Engagements” … Page 5:


And again – where was the Registrar and Minister at this pivotal  time … why was the Deputy Registrar –  Uri Windt signing and approving all that the SBNSW was asking for … when the Minister and the Registrar were so against the SBNSW Directors serving in ‘conflict of interest’ positions.

This was a crime with serious implications for the Building Society industry in NSW.  St George had just taken over the 2nd largest Building Society in the State and now had assets in excess of $6 billion – their nearest rival was the Illawarra Permanent Building Society with $600 million – this merger crushes expansion opportunities for the other NSW Building Societies and this should have been a consideration for the Minister.

In fact it was if you have read the Minister’s initial comments made after the 5th mat Boardroom coup. This was made to happen and somewhere along the line – the Minister and Registrar moved aside.  $75 million – the value of the SBS was stripped from the SBS members – a $1.6 billion profitable and thriving entity was crushed on the actions of one man – John O’Neill and he needed his Premier to help him do it – and all done whilst serving in a proven ‘conflict of interest’ legally acknowledged by the Crown’s own legal opinions.

You cannot get a clearer case for an investigation into the actions of O’Neill,  Greiner and the rest of their ‘gang’.

Return to Top – Date Index of Events:


Part 13 continues … there will be another short in posting of the next installment – the documents in the next upload include Media stories from the SBS AGM and other personal documents that form part of this continuing expose into the ‘evil’ that is John O’Neill… see link below …


Link to all previous chapters for –

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


The EYE-BALL Opinion … Without Prejudice …

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