The Sydney Morning Herald from Sydney, New South Wales, Australia • Page 2

Monday, September 7, 1992 2 The Sydney Morning Herald Damming report The emir says thanks, but not much else on bank collapse 6 They were very happy to see such a bright city. It is not closed. Very nice. Mr Ian Johns, or its managers or directors, including the SBV chief executive Mr Bill Moyle. However, it found that Mr Johns must accept a major share of responsibility for the collapse because of his "consistently bad decisions arising from his arrogant overconfidence, lack of business acumen, naivety when dealing with well known entrepreneurs, lack of candour at times amounting to deviousness and unwillingness to admit Managers and board directors, in particular Mr Moyle, are also heavily criticised.

And, while it found no grounds for action arising out of Mr Johns's management of Triconti-nental's lending portfolio under section 229 of the Companies Code, a confidential report now in the hands of the Victorian Attorney-General examines the possibility of more serious breaches in other areas of law that may lead to charges. The commission report, which took two almost years to complete, said: "Disastrous as the Tricontinental losses have been, they did not result from government failures, an incompetent bureaucracy or commercial cor ruption or indeed any behaviour that could fairly be called criminal. "They were essentially caused by ordinary human failings such as careless taking of risks while chasing high rewards (in a decade noted for its commercial greed), complacent belief in the reliability of others, lack of attention to detail and arrogant self-confidence in decision making all of which resulted in poor management and unsound business judgments." The commission criticised the part played by the Reserve Bank in- the collapse of the merchant bank, finding that it failed to probe more deeply into the bank's operations, although aware that there were problems. "It had seen the dangers but was too easily satisfied by formal assurances," the report said. The report will be of some comfort to the Kirner Government, which took the unusual step of allowing it to be released under Freedom of Information legislation.

Normally the report would be tabled in Parliament where parliamentary privilege prevails. By JULIE LEWIS MELBOURNE: The royal commission into the $2.5 billion collapse of the Tricontinental merchant bank has recommended that no criminal charges be laid against the bank's directors or managers, despite delivering a damning report into the operations of the failed bank. And it has targeted the Reserve Bank of Australia for its role in the billion-dollar failure, finding that it must share some responsibility for the huge losses. The commission found that "ordinary human not criminal behaviour, lay behind the failure of the merchant banking arm of the State Bank of Victoria (SBV). The collapse eventually forced the sell-off of the SBV to the Commonwealth Bank to cover its billion-dollar losses and in the wake of the political backlash, the State Treasurer, Mr Rob Jolly, and eventually the Victorian Premier, Mr John Cain, resigned.

In its final report, obtained by The Age under Freedom of Information legislation, the royal commission refused to recommend prosecutions against either the managing director of the bank, Tj FTP j' By JOHN STAPLETON So here was the man the Western allies went to war for, the Emir of Kuwait, Sheikh Jaber al-Ahmed al-Sabah. Appearing serious, almost withdrawn, he did not so much as look sideways at the gaggle of television and still photographers who were allowed on to a nearby barge to photograph him as he boarded the cruise ship John Cadman III yesterday. The emir arrived in Sydney on Friday evening and has been staying at the Regent Hotel, where the party is reported to have booked 112 rooms, most of them at the Kuwaiti Government's expense. He is travelling with a retinue which includes personal bodyguards, and senior members of the Kuwaiti Government. The current issue of Fortune magazine lists him as the seventh wealthiest man on earth, with a personal fortune worth billion.

Sheikh Jaber's visit is to thank Australia for its contribution to the international forces which liberated Kuwait last year. Heavy security surrounds the visit. Well before arriving at the Maritime Services Board wharf at Walsh Bay yesterday, Special Branch police surrounded the wharf. A cavalcade of 13 white government cars made the short trip from the Regent, and around 40 people, including the emir, walked rapidly onto the boat. Some were wearing traditional robes, others suits.

Australian journalists were given no access to him, although the Kuwaiti press followed him on board. Sheikh Jaber does not give press conferences or interviews, but a spokesman is expected to hold a press conference in Canberra later this week. His Australian chauffeur noted with some astonishment the complete absence of women in the emir's party, and said the emir never spoke to him directly, but he was asked to turn the air-conditioning up or down via his assistant. Sheikh Jaber was taken for a cruise underneath the Harbour Bridge and up past the eastern suburbs. The boat anchored off Taronga Zoo while lunch was served.

The menu included a seafood entree, followed by Australian rump steak and dessert. A spokesman for the emir said His Highness had enjoyed the Harbour cruise "very much, "All the members of the delegation are excited with what they saw in Sydney. Everything is clean and modern. They are lucky to see such a big city," he said. "It is maybe better and more beautiful than London and New York.

They like the place very much. They were very happy to see such a bright city. It is not closed. Very nice." The emir's party visited Indonesia for the meeting of the Non-Aligned Movement before coming to Australia. On Saturday, His Highness visited the Blue Mountains, where he went to Wentworth Falls and Leura.

He drove by the Three Sisters and visited the luxury hotel Lilianfels, where he had coffee and walked around the gardens. On his return to Sydney he was visited by the Premier, Mr Fahey, for approximately half an hour. In a statement, the Prime Minister said: "Australia played a direct role in the international effort to defend Kuwait independence and sovereignity, and I welcome the emir's visit as an opportunity to reaffirm our commitment to peace and security in the Gulf. "Kuwait and Australia have developed a sound relationship over the years especially in the area of trade," Mr Keating said. "Kuwait is located in a region which is of major significance for Australian exporters.

We look forward to the renewal and broadening of that relationship as the Kuwaiti economy continues its rapid process of reconstruction and normalisation." The emir will leave Sydney for Canberra today, where he will be staying at the Hyatt. A State Dinner is to be given by the Governor-General and Mrs Hayden tonight. In Canberra, he will have discussions with the Prime Minister "on a broad range of He will also be "meeting the Minister for Foreign Affairs, Senator Evans, the Minister for Trade, Mr Kerin, and the Leader of the Opposition, Dr Hewson. He will visit the War Memorial, where he will inspect the Gulf War section, and sign the visitors' book. On Wednesday he leaves for New Zealand before returning home via the Maldives.

Backpack clue to SBS executive's murder 1 1 if 11 1 si I By NICK PAPADOPOULOS Police have found the bloodstained backpack of the SBS television executive Mr Richard Diack less than three weeks after he was murdered. The blue nylon backpack with black stripes was found about 30 metres down an embankment on the Putty Road between Singleton and Windsor last Monday. A parka, walking map and camera were found in the bag, a police spokesman said. "Tests are now being carried out." Detectives also released computerised sketches (pictured left) yesterday of two men who attempted to use Mr Diack's Cabcharge card to pay an $8 taxi fare from Kings Cross to Rose-bery about 5.35 am on August 12. Mr Diack's body was found lying -face down about 20 metres from a popular walking trail in an area known as Narrow Neck, a short walk from the Scenic Railway at Katoomba, on August 10.

His white Holden Berlina was found at Singleton hours later. Mr Diack was last seen alive about 12.30 pm the previous day, walking down an escarpment metres from the car park. Police yesterday dressed a life-sized mannequin in the car park with similar clothes to those Mr Diack was wearing at the time of his death, in the hope of jogging someone's memory. Police believe Mr Diack, 41, of Bellevue Hill, may have been dragged into the bushland by the killer. A post-mortem examination revealed he was hit with a large flat object with sharp edges, possibly a brick.

A motive has yet to be established. One of the two men sought by police is described as Caucasian, clean-shaven, about 23, and 178 centimetres tall, with collar-length blond hair. He wore a silver earring and blue denim jacket and jeans. The other man was also Caucasian, about 23 and 180 centimetres tall, with a solid build and collar-length blond hair. He wore a dark parka.

Anyone with information should call police on (02)689 7778. mm Sheikh Jaber, goes aboard a Picture by STEVEN SIEWERT Away from the worries of State His Highness, cruise boat yesterday for his Harbour trip. Coalition increases gap between it and Labor ffldavs SAUU7ICK POLL $0f- 3 8 tyir How you would vote left to get a Macintosh Classic plus ClarisWorks Total Women Men 18-24 25-3940-54 55 NSW Vic Labor 30 27 33 27 34 27 28 35 25 Coalition 47 46 47 43 37 52 57 44 49 Liberal 41 41 41 34 34 43 52 40 46 National 6 5 6939543 Democrat 610 3985348 Independent 12 12 13 12 15 13 9 14 14 Other 5 5 4853333 All figures are percentages rounded to the nearest whole number. for only By DENIS MULLER The Liberal-National parties lead over Labor has lengthened to 17 percentage points in the past month, the latest Herald Saulwick Poll shows. This is the best result for the Coalition since June, and continues a recovery in its vote from a minor mid-year slump, when only eight points separated the main parties.

The Liberal-National parties are now attracting 47 per cent of the first-preference votes (two points up on a month ago), and Labor is attracting 30 per cent (two points down). The Democrats have shed a couple of points to 6 per cent and Independents have gained two and are now at 12 per cent. Taken together, the share of the vote going to the Democrats, Independents and other parties is now at 23 per cent. While this still represents a sizable disillusionment factor for the main parties, the boom associated with Mr Phil Cleary's win in Mr Hawke's old seat of Wills appears to be over. Among women, Labor's vote has fallen four points to 27 in the past month, and among men the Labor vote remains unchanged at 33 per cent.

The Coalition parties appear to be the main beneficiaries in the shift in the female vote, picking up three points to 46. Among men, the Coalition vote is almost static, slipping one point to 47. Labor at the Federal level continues to do much better in ABOUT THE POLL Date Sept 2 and 3 Sample 1.000 Coverage National Method Telephone Question If a Federal election for the House of Representatives were held tomorrow, for which political party would you probably vote: Labor, Liberal. National, Democrat or some other party? Surveys of this kind are subject to normal sampling variances which, with a sample of 1.000, could be up to plus or minus 3 per cent. Siulwick Herald Poll is conducted by Irving Saulwick and Associates who also hold the copyright.

informally. This group has been distributed among the parties in proportion to the stated level of support for each. NSW, where it has 35 per cent of the vote, than in Victoria, where it has 25. This is a somewhat worse result for Labor in Victoria than the 28 per cent recorded a month ago. The Coalition is ahead in both States, with 44 per cent in NSW and 49 per cent in Victoria.

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