John Bannon’s resignation as Premier of South Australia last September can now be seen for what is was: not a man putting party and colleagues before self, but a quick exit before the curtain inevitably came down on a saga on ineptitude. The findings brought down yesterday by the Jacobs Royal Commission into the State Bank of South Australia do not reveal rottenness on the scale of WA Inc, but they reveal some appalling commercial blunders and profound structural weaknesses in the relationship between the bank and the politicians. Put simply, if John Bannon had tried to tough it out in September he would have had to resign yesterday. He earlier resignation will not remove the taint on his colleagues which will have its inevitably effect at the election next year. South Australians will realise, as surely as Victorians did, that financial mismanagement of that scale is inexcusable.
The new Premier, Lynn Arnold, attempted to distance his government from the bank’s $3.15 billion losses. He said the commissioner Samuel Jacobs, QC, had not discovered an SA Inc and that there was no deliberate cover-up by Mr Bannon or any other member of the Government. Even accepting Mr Arnold’s view of commission’s findings, that only shows the Government was not dishonest. It was still incompetent, and incompetent on a grand scale. Mr Arnold attempted to sheet blame on to the bank’s chief executive, Tim Marcus Clarke. This is untenable.
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