By Melanie Sjoberg

ADELAIDE -- Ironically, the auditor general's report on the downfall of the State Bank was released on April Fool's Day. It offered little to the people of South Australia, who have been waiting for over two years for some concrete explanations for the $3.15 billion loss.

The report is peppered with phrases describing the actions of Tim Marcus Clarke, then managing director, and the members of the board as “incompetent”, “failing to take heed of warnings”, “lacking judgment”, and “acting without proper care”. Evidence had existed since 1987 that the bank was heading for financial difficulties, yet the warnings of the Reserve Bank were not accepted.

The report scathingly condemns the board for unquestioningly following the lead of Marcus Clarke. It is criticised for approving loans without adequate information, advancing funds despite lack of security and ineffective monitoring of subsequent performance of these organisations.

Marcus Clarke comes in for some specific accusations related to “conflict of interest and breach of fiduciary duty”. In his position as managing director of the bank, he was responsible for assisting Equiticorp out of financial difficulties. He also happened to be a director and shareholder of that company. Despite the declining performance of the State Bank, Marcus Clarke had his salary package increased to $500,000, which included an interest-free home loan.

Premier Lyn Arnold has claimed that criminal charges will be brought against anyone involved where “breaches of the law are in evidence”.

Reports of parliamentary question time sound more like a jousting tournament than a serious discussion about the latest revelations in this debacle. The Liberals are scoring points by asking questions that former premier John Bannon is unable to answer. There is a noticeable lack of questions and answers on when those responsible will be brought to justice.

Bannon accepted responsibility and resigned as premier, but he still receives a parliamentary salary and ostensibly represents his electorate on the backbench.

What is really needed is not more pronouncements about mismanagement, but genuine accountability and the right to recall ineffective members of parliament. The injustice is that the majority of people are being forced to pay through increased taxes for a small minority who have had their noses in the trough and are still escaping retribution.

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