Page 4641 - Week 15 - Wednesday, 15 December 1993
Next page . . . . Previous page . . . . Contents . . . . Debates(HTML) . . . . PDF . . . .
fully investigated by the authorities. However, I am informed that none have been. I have in my possession copies of documents that contain, as an example, evidence of at least one serious offence, if not fraud, committed by a State Bank officer in New South Wales. I will be seeking leave from members to table these relevant documents.
Company search documents show that a $2 company, Fouron Pty Ltd, Australian company No. 003 066 840, is wholly owned by the State Bank of New South Wales. Public company records show that Mr Allan Hugh Whitehead, Mr Richard William Turner and Mr Peter Gerard Friend are directors of Fouron Pty Ltd. The 1992 State Bank annual return and other information show that these three Fouron directors are also executives of the State Bank of New South Wales. The 1992 annual return of Fouron Pty Ltd shows that Fouron borrowed $216,963,011 and loaned out that exact same amount. Apparently the $216m all came from Fouron's ultimate parent entity, as the State Bank of New South Wales is referred to in the Fouron annual return. The return also shows that Fouron collected loans of $348,077 and repaid that exact same amount in borrowings. This one-quarter of one per cent hardly seems a good return on loans of $216m, either for Fouron Pty Ltd or for its parent, the State Bank of New South Wales.
The annual return shows a retained profit for a 15-month period to 1992 as a minute $344. The directors of this shelf company received, or were due, directors' fees of $385,611 from Fouron and related companies. Why, then, did the New South Wales State Bank, owned and held in trust for the people of New South Wales by the Premier and Treasurer, set up a $2 shelf company to which bank officers loaned $216m? As the State Bank is in the business of lending money, why was a separate company set up to conduct material activities outside the bank?
The answer to these questions is given in a State Bank document dated 18 January 1991 which states in part:
Funds were lent to this company for on-lending to our customer as the security property in Goulburn Street operates an erotic theatre, the Eros Theatre, and a peep show (no concession State Bank staff).
It was considered at time of original application that State Bank would not want to be associated with financing a building housing these businesses, as Nick Greiner had just led the Liberal Party to power and was talking openly and critically of closing such places.
The customer referred to as the purchaser of the property containing these businesses is Halbear Pty Ltd, to which the State Bank loaned $1.7m through Fouron. I am informed by reliable sources that one of the activities of Halbear Pty Ltd, listed on official company records as an investment company, included the operation of the brothel at those same premises previously occupied by the infamous Goulburn Club, located at 55-57 Goulburn Street, Sydney, this property being held as security by Fouron over Halbear. This means that employees of the State Bank of New South Wales had set up an elaborate front business to conduct dubious activities that they wished to hide from the owner of the bank, the Premier, Nick Greiner, and through him the people of New South Wales and the ACT.
Next page . . . . Previous page . . . . Contents . . . . Debates(HTML) . . . . PDF . . . .