'Cloud' lingers in DNA contest over notorious murder of Sydney bank teller

A cloud is lingering over the family of a murdered bank teller as a man serving life behind bars challenges DNA evidence used in the notorious case.

Stephen Wayne "Shorty" Jamieson, 59, was convicted in 1990 and sentenced to life in prison for leading a gang of youths in the 1988 abduction, rape and murder of Janine Balding.

Long claiming he was the victim of mistaken identity and had been confused with another "Shorty", Jamieson has been fighting for further DNA testing he claims could clear his name, taking the matter to the NSW Supreme Court.

READ MORE: Choice reveals its Shonkys 'award' winners for 2025

The further inquiry had to come to a conclusion for the sake of Balding's family, the detectives that investigated the bank teller's murder and the community, Justice Ian Harrison said as the case returned to court today.

"The resolution of this issue, whatever it is, is important," the judge said.

"Once having been raised, there is ... a cloud hanging over these matters."

READ MORE: Mum joked as six-year-old daughter died from neglect, court hears

The matter had to be dealt with following the law so some certainty could prevail, Justice Harrison said.

Jamieson watched silently by audio-visual link from Goulburn Prison as the judge spoke.

His barrister Richard Wilson SC said NSW Police had agreed to provide further information and conduct additional DNA testing.

That followed Justice Harrison ruling in February police could be asked to conduct testing on a certain area of a bandana used to gag Balding.

Jamieson contends this item of clothing could implicate a 63-year-old man who went by the same nickname: Mark "Shorty" Wayne Wells.

Wells' DNA profile had been obtained by NSW Police from Queensland authorities.

The 63-year-old has denied any involvement in the rape or murder and has never been charged over the crime.

The DNA testing would be expanded to include other areas of the bandana as well as other items connected with the crime, Wilson said.

The public defender noted there may not be conclusive results from the tests given the age of the incident and the fact Balding's body was found in a body of water.

The state government and police agreed the matter should be resolved soon.

But it was difficult to know exactly when the testing would be completed, the judge was told.

Balding's murder shocked the nation in its brutality after the bank teller was grabbed from a Sydney train station by the gang of homeless youths, who repeatedly raped her.

The 20-year-old was bound, gagged and thrown over a fence before being held underwater in a dam until she drowned.

The matter will return to court on December 17.

Support is available from the National Sexual Assault, Domestic and Family Violence Counselling Service at 1800RESPECT (1800 737 732).