Inquiry hears James Packer pushed risky high-roller business at centre of money laundering allegations
The Independent Liquor and Gaming Authority inquiry is determining whether Crown is fit to hold a gaming licence for the new $2.4 billion Barangaroo development in Sydney after explosive media reports last year.
The reports included leaked footage of huge amounts of cash
moving through a room at Crown Melbourne dedicated to Suncity, Macau’s largest
junket operator, which sparked the inquiry.
As the probe entered its final days this week, Crown
announced financial crimes regulator AUSTRAC was investigating potential
noncompliance with anti-money laundering laws.
On Wednesday, Geoff Dixon, who retired as a Crown director
in October, told the inquiry there were many matters he was not informed about
despite being chair of the risk management, and nomination and remuneration
committees for many years.
Mr Dixon, a former Qantas chief executive, said he was not
informed about Mr Packer’s deal to sell a near 20 per cent stake in Crown to
Hong Kong group Melco, which is linked to a businessman with allegedly shady
connections, the late Stanley Ho.
“I think it was on the news the next day,” Mr Dixon said
when asked how he first heard about the deal.
“I certainly wasn’t informed. No one called me to say,
‘Look, we’re selling shares’ – James or his people.”
Other directors were not told but should have been, Mr Dixon
said.
Melco only ended up buying 10 per cent, dumping its plans to
buy the second tranche in February.
Counsel assisting Adam Bell noted Crown’s agreements with
the NSW regulator required the company to prevent Mr Ho or his associates
becoming a shareholder.
“This is a sale that by any means raised issues,” Mr Dixon
said.
“If I’d been informed, I would have done a range of things.”
The inquiry last month heard Mr Packer was insistent the
deal go through.
Michael Johnston, an executive of Mr Packer’s private
investment vehicle Consolidated Press Holdings and a Crown director, confirmed
at the inquiry the reclusive billionaire had said “It’s my life and I’m going
to overrule you” when he believed Mr Johnston was trying to get him to focus on
alternative transactions.
On Wednesday, Commissioner Patricia Bergin made comments in
“fairness” to Crown’s chief executive officer of Australian Resorts, Barry
Felstead, who has been blamed for not passing on a lot of serious information
to the board, including knowing staff in China were expressing fears about
their safety well before their arrest in 2016.
Ms Bergin asked Mr Dixon: “We have a structure that looks,
on one view of it, as though Mr Packer was running the VIP side of things
effectively or very interested in it, with Mr Felstead working very hard … on
the ground and the rest of the board not knowing of these shocking risks, you
understand that?”
“Yes I do … I’ve conceded that. I don’t think I’ve ever
communicated with Mr Packer or Mr Johnston on any of these issues,” Mr Dixon
replied.
“I don’t think this is all on Mr Felstead’s head, but I
still think, no matter what, there is a lot of things that could have been
elevated to the board and to the committees by Mr Felstead.”
Mr Dixon was quizzed about Mr Packer hand-picking almost
every director on the board and why all but one had no prior experience in the
gaming industry, saying, in his defence, there was a “small gene pool” of
senior Australian executives and selecting people who were known and trusted
was “not a bad process”.
He also revealed Crown did not offer training around money
laundering or infiltration by organised crime.
“It was learn on the job,” he said.
Mr Dixon’s testimony comes a day before the Crown annual
general meeting, where four directors, including chair Helen Coonan and
non-executive director Andrew Demetriou, a former AFL boss, are up for
re-election.
Ms Coonan, a former Liberal senator, revealed at the inquiry
on Friday that Mr Felstead would leave the company the end of the year after
reaching an agreement with the board.
He was “getting very near to wishing to retire” and “recent
events have escalated his desire to do that”, she said.
Ms Coonan admitted Crown facilitated money laundering on
Tuesday.
She was asked by Ms Bergin if she agreed “the bystander
could reasonably conclude that this conglomerate of ineptitude, lack of
attention and failing to intervene facilitated money laundering?”
“Yes … it was the turning a blind eye that I didn’t agree
with,” Ms Coonan replied.
She was also asked if the slated opening date for the
Barangaroo venue of December 14 was appropriate given the inquiry will hand
down its findings on February 1. She replied the NSW government had set a
development milestone date of February 14.
“So whether or not we open, with the greatest of respect, is
not entirely Crown’s decision, but I appreciate … the sensitivities,” she said.
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