Probe into Crown Perth stepped up to a royal commission to give overseers ‘immunities, protections’

The investigation into Crown Perth has been escalated to a royal commission in the wake of the explosive NSW Bergin inquiry findings into money laundering.

A royal commission will examine whether Crown Perth is fit to hold a casino licence following explosive revelations of money laundering by organised crime-linked ‘junkets’.

WA Attorney-General John Quigley and Gaming Minister Paul Papalia announced the royal commission on Friday, saying it was expected to cost about $5m.

The probe will examine Crown Perth’s operations and existing regulatory frameworks, including actual or perceived conflicts of interest.

Three commissioners have been appointed — former Supreme Court judges Neville Owen and Lindy Jenkins, and former Auditor-General Colin Murphy.

Mr Papalia previously announced an independent inquiry under the Casino Control Act, with the powers of a royal commission.

But when he went to the state solicitor’s office to set up the inquiry, it was determined the commissioners would not have “immunities and protections” under the Royal Commissions Act.

Billionaire James Packer fronted the NSW inquiry.

“Advice was sought from the state Solicitor-General, who confirmed this and, in writing to me in a briefing note, said the preferable structure would be a royal commission,” Mr Quigley told reporters.

“I wish to stress that whilst it might be unusual to set up a royal commission during a caretaker period, I personally had consulted with the Leader of the Opposition ... and Mr (Zak) Kirkup totally concurred with that.”

Mr Papalia said WA’s Gaming and Wagering Commission had already directed Crown to obtain its approval to establish gaming bank accounts.

It is not yet known whether Crown’s biggest shareholder James Packer will front the probe, as he did with the NSW inquiry.

The royal commission is expected to deliver interim findings by June 30, followed by a final report with recommendations on November 14.

It was sparked by the findings of last year’s lengthy NSW Independent Liquor and Gaming Authority inquiry, headed by former Supreme Court judge Patricia Bergin, who concluded Crown Resorts facilitated money laundering at its Melbourne and Perth casinos, as alleged in 2019 media reports.

The damning findings resulted in the regulator being advised the company was unsuitable to retain the gaming licence for its new $2.2bn facility at Barangaroo in Sydney.

Former Judge Neville Owen will lead the WA royal commission. Picture: Wayne Taylor

Five Crown Resorts board members have already departed, including chief executive Ken Barton, Mr Packer’s nominees, and investment banker John Poynton, who was also Crown Perth’s chairman.

Mr Poynton had his consultancy agreement with Mr Packer’s Consolidated Press Holdings terminated after the NSW inquiry findings but was the last to relinquish his board role, having insisted he was not a puppet of the reclusive billionaire.

After the Bergin inquiry found Mr Packer’s influence over Crown had “disastrous consequences for the company”, he said he would sadly step back to being a passive shareholder.

The probe heard Mr Packer got special treatment as the biggest investor with a 36 per cent stake, with briefings on an almost daily basis, and had been the driving force behind the push to secure more of the Asian high-roller junket market at the centre of the scandal.

Crown Resorts also faces a royal commission in Victoria, which was announced last month.

It will be overseen by former Federal Court judge and senior barrister Raymond Finkelstein, who will hand down his findings by August 1.

Crown Perth at Burswood on first day of COVID-19 lockdown last year.

WHO ARE THE WA COMMISSIONERS?

Neville Owen

A Supreme Court judge from 1991 to 2010.

At the time of his retirement, he was the senior judge in the Court of Appeal.

From 2001 to 2003, he headed the HIH Insurance Royal Commission and was the trial judge in the Bell Group Litigation.

Lindy Jenkins

A Supreme Court judge from 2004 to 2020.

She has been the chair of the Law Reform Commission since September.

Colin Murphy

Experienced in finance and administration in state and commonwealth government roles.

He was the state’s independent Auditor General for more than 11 years.

Originally published as Probe into Crown Perth stepped up to a royal commission to give overseers ‘immunities, protections’