Page 4644 - Week 15 - Wednesday, 15 December 1993
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It has been advised that this matter falls under the jurisdiction of the New South Wales Fraud Squad. In February 1993 these matters were drawn to the attention of a member of the Fraud Squad, but no effective action has been taken. The Government of New South Wales was made aware of this situation, but has made little or no effort to right these wrongs.
I also have a copy of an answer to questions raised in the New South Wales Legislative Council by the Hon. Michael Egan, MLC, as to the activities of Fouron Pty Ltd and other shadowy instruments controlled by the State Bank of New South Wales. In answering these questions raised in the New South Wales Parliament, the New South Wales Auditor-General, Mr A.C. Harris, paints a rosy picture that suggests that all is well and that there is no need for concern. However, in doing so he skips lightly over the fact that just two of the State Bank entities, one being Fouron Pty Ltd, controlled between them over half a billion dollars.
On 31 March this year, I raised in this house another matter of public importance about unethical banking practices and I covered a number of unethical activities by banks and some banking officers. I referred in particular to the State Bank of New South Wales. It would seem, however, that the State Bank has in no way moved effectively to protect its clients from fraud and other unethical activities. I am also aware of other serious allegations in these areas. These questions must be answered before we allow the State Bank liabilities to be off-loaded onto the policyholders and shareholders of the Government Insurance Office. The shop staff of the banks, who are simply doing their jobs, are certainly not responsible for any of this, although it must have an adverse effect on them.
In conclusion, I ask the ACT Government to implore the New South Wales Government to immediately conduct a full and independent inquiry into the activities of the State Bank of New South Wales and its management. I seek leave to table the following documents: The annual return of the State Bank for 1992; Fouron's annual returns of 1991 and 1992; the Halbear annual return lodged this year; the Document Examination Co. evidence; the interoffice memo which shows the National Crime Authority interest in Fouron; the document from the State Bank referring to Mr Greiner; the Auditor-General's office document about Michael Egan's concerns; and, lastly, the Halbear company document and the Fouron company document.
Leave granted.
MS FOLLETT (Chief Minister and Treasurer) (3.28): Madam Speaker, a great deal of what Mr Stevenson has raised will need to be studied in more detail. I would like to address some remarks to the broader question of the matter of regulation of banks. I think it is the broader question which goes to the heart of a great deal of what Mr Stevenson has said. Mr Deputy Speaker, Mr Stevenson has raised similar issues to this on a number of occasions. The issues that he has raised today are most complex and I think we will need to look at them very carefully. One question that arises in my mind, Mr Deputy Speaker, is why these issues have not been more comprehensibly referred to the police. I wonder why it has come to be the case that Mr Stevenson is raising them in parliament and whether they have been fully investigated by the relevant law enforcement authorities.
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