THE man who police believe stole Kerry Packer's gold bullion is living a quiet but comfortable life in Sydney's ritzy eastern suburbs.

Now aged in his 70s, the master crook last month sold his Woollahra unit. Mr Packer's former secretary, the late Pat Wheatley, lived nearby.

Detectives suspected she was one of the man's lovers and worked on the theory pillow talk was how the ace safecracker got inside knowledge about the gold in Mr Packer's 1940s steel Chubb safe hidden behind the drinks cabinet in his city office.

The Daily Telegraph can reveal the sensational story behind Australia's largest and most puzzling gold bullion robbery, including the fingerprint in the safe and where the security guards allegedly were on the night of the theft.

A former detective sergeant who worked on the case yesterday spoke about the frustrations of police, who have never charged anyone over the robbery.

"We had a lot of conversations with the major suspect. I don't think anyone will ever be arrested, not unless he confesses," he said.

A sole fingerprint found inside the safe gave police what they thought was their first major breakthrough as they hunted what they believed was a gang behind the break-in at the Australian Consolidated Press building in Sydney's Park St.

When clerical staff arrived at the third-floor executive suite at the heart of billionaire Mr Packer's business empire on the morning of May 1, 1995, they discovered the two doors leading to his personal secretary's office opened at the push of a hand.

Indentations showed the doors had been prised open with either a crowbar or a screwdriver - and carefully closed again afterwards.

Inside Mr Packer's private office was a scorch mark in the carpet about 10cm from the large drinks cabinet which held the thieves' target - his old Chubb safe.

It had belonged to his late father Sir Frank and had held $5.4 million in gold bullion weighing 285kg, a jar containing "scrap gold" such as nuggets and gold wire, and a gold and silver necklace.

None of the security alarms had gone off overnight but the safe had been emptied - the lone fingerprint found inside was all that was left behind.

The fingerprint was traced on the police database to a relatively minor crook from South Australia.

"You can imagine how excited we were. We had a suspect," said former detective inspector John Wilson (left).

After putting the South Australia man under surveillance, they pulled him in and discovered he had worked as a safe mechanic - on Packer's safe. He was ruled out.

media_camera A gold bar from the same series as those stolen from businessman Kerry Packer's office safe in 1995.

Police knew the thief had to have inside information because the safe was a secret.

"We interviewed all the accountants and no one knew about this gold except for his current personal secretary," the former detective said.

Mr Packer's previous secretary, Ms Wheatley, had by then retired and police attention turned to her - and her friendly neighbour, one of the country's most notorious safecrackers and a well-known ladies' man.

"He was our main suspect for many reasons although there was absolutely no physical evidence, none," the former detective said.

"There was the way the safe was opened, his relationship with Mr Packer's ex-secretary, his lifestyle."

The safe was locked on the inside by a steel bar about one inch wide. If the bar was cut, the safe would open. The thief had cut only one hole, right in the middle and exactly where the bar could be opened.

Police had evidence that their suspect regularly visited Ms Wheatley, who had been the media mogul's private secretary for 18 years and was known affectionately as "the perfumed bulldozer''.

media_camera Businessman Kerry Packer's office safe, from which $5.4 million in gold bullion was stolen.

There was never any suggestion she had anything to do with the theft but police believed that the crook had ingratiated himself with her.

He was known as a real loner - except for women - and had been having an affair with the female owner of a prominent Sydney restaurant around the same time.

Police put him under watch but he was a master at counter-surveillance.

He worked out on a bench press at home - perhaps one of the ways he was able to move the 285kg of gold by himself on to the trolley which he is believed to have used to roll it into a van at the loading dock and simply drive away.

His usual vehicle was a Ford Falcon ute.

The security system at Park St was old and outdated and police believed it would have been easy for an experienced hand like their suspect to shut it down. But how did he get past the private security guards on duty?

Some time later a security guard who had by then left the company went to police and claimed that it was common for the guards to spend much of their shifts in the gym and pool or playing squash at the Hyde Park Club, which was part of the Packer complex and part of the area they were charged with keeping secure.

media_camera Det-Insp John Wilson, of Southern Region Major Crime Squad, was in charge of the investigation into the theft of gold bullion from businessman Packer.

"Everything led to a dead end and it wasn't until we found out from the ex-security guard who came in and told us what went on there that we realised (the suspect) wouldn't have needed to have a security guard on the inside if he knew that they would not be there at the time," the former detective sergeant said.

Ms Wheatley, who retired to Bowral and has died of cancer, used to talk of her amusement that police continued to question her.

Police believe the gold was moved to Melbourne and melted down. The suspect has been questioned by the NSW Crime Commission, who at one stage took over the case. He has admitted nothing.

Yesterday a woman who answered the door at his new address wrapped in a white towel said he was no longer there.

Most of the gold bullion was covered by insurance.

Robbery squad commander Superintendent Luke Moore said yesterday that the case remained open and "ongoing".

Originally published as Criminal genius stole Packer's gold