Star hits out at former ‘deplorable’ CEO, chairman

Star Entertainment says the hostility of former CEO Robbie Cooke and chairman David Foster towards the regulator was ‘deplorable’ and likened their removal to an ‘Icelandic saga’.

How risk free can The Star be, the Bell II Inquiry has been asked.

Star Entertainment says the hostility of former chief executive Robbie Cooke and chairman David Foster towards the regulator were ‘deplorable’ and likened their removal to warriors being brought off the battle field in an Icelandic saga.

Counsel for Star Bret Walker, SC, told the Bell II inquiry that the departure earlier this year of Mr Cooke and Mr Foster represented an opportunity for the company to present a new face to the NSW Independent Casino Commission (NICC).

The three-week inquiry heard earlier of allegations that Mr Cooke and Mr Foster accessed the diary of the NICC-installed manager, Nicholas Weeks, to find out about meetings with lawyers and began “prepping for war”. It also heard the men contemplated a class action from shareholders against Mr Weeks and the NICC.

“There is an element of an Icelandic saga about all of this as various warriors were carried from the field,” said Mr Walker, referring to the departure of Mr Cooke and Mr Foster along with other executives. “The use of those words by the two gentlemen in question were not indicative of the most desirable relation with the regulator and the manager.

“We agree with that. We’ve embraced it and our continuing directors have no doubt it is an episode which has left some scorch marks.

“All of those matters are in the past, and are so striking in their particular facts, that there is no inherent likelihood at all of repetition, nor do they show any pattern of conduct which would extend beyond the predilections of the particular individuals in question who are no longer responsible for executive operations.”

Mr Walker described Mr Cooke as a domineering chief executive but that his “private and inappropriate posturing,” which ought to be regarded as deplorable, were not material in weighing adversely against Star’s suitability.

The Star Entertainment group has been under repeated fire during the inquiry.

Imtiaz Ahmed SC, for Star, described Mr Cooke as having many good qualities, much like a “war time President,” but had impeded cultural reform at Star.

“There was undoubtedly a narrative that emerged in the latter half of 2023 of it being us and them in relation to the regulator,” said Mr Ahmed. “And that’s evidenced most starkly through the text messages and emails between Mr. Cook and Mr. Foster. We say that those are all matters that are likely to have impeded the cultural reform within the company itself.”

He said there was now a renewed desire to tackle cultural issues at the Star as it accelerated its remediation plan and looked for a new CEO.

“It’s obvious from the amount of work that’s being done that cultural issues are being taken seriously and that there’s a real desire to effect change,” said Mr Ahmed.

“Numerous external consultants have been retained and that’s required significant financial commitment. The level of resources devoted is a measure of the seriousness with which the issue has been taken by Star.”

Earlier Mr Walker told the inquiry in closing oral submissions that casinos were not ‘risk free’ businesses and customers are not always able to be controlled.

He said inquiry head Adam Bell, SC could not be expected to have a “crystal ball and a calendar” to determine the suitability of the troubled casino operator to retain its Sydney licence given the uncertainty of running any business.

Counsel for Star Bret Walker, SC.

Mr Walker said earlier evidence that Star was continuing to fail regulatory oversight at the casino, including a $3.2m fraud committed against the company by customers and the falsification of welfare checks on problem gamblers was regrettable but were being addressed as part of remediation. “Star’s remediation plan is one, which if accomplished, should bring about a state of affairs solidly in the public interest concerning the suitability,” he said.

Mr Bell is conducting his second inquiry into Star’s suitability following an earlier probe found it had not met its obligations to prevent money laundering and organised crime links. He will report later this year to the NICC.

“Suitability is not what might be called an absolute state of affairs, it’s relative and involves assessments of risks which cannot be eliminated from the conduct of any business,” Mr Walker said. He took issue with suggestions Mr Bell would need to have “clear and convincing evidence” about Star’s operations and finances before assessing the company’s suitability and capacity to retain the Sydney licence.

“That eliminates what might be regarded as the ordinary vicissitudes and the inherent risks of trading in a business where you don’t control your customers or costs,” he said.

“These are, by definition, the risks of business. There is nothing to suggest that the conduct of a business, which requires attracting people to put their money on the table, literally and figuratively, was intended to be risk free.”