I will never serve on Crown board again: Packer

Billionaire James Packer has ruled out ever serving on the Crown board again after “shocking” allegations linking it to criminal activity.

Billionaire James Packer continues to give evidence at the casino inquiry. Picture: Aaron Francis/The Australian

Billionaire gaming mogul James Packer has ruled out ever serving on the Crown Resorts board again after “terribly shocking” allegations linking it to criminal activity.

Mr Packer made the comments during the third day of his evidence to the NSW gaming inquiry, when Commissioner Patricia Bergin asked him how the company could be restructured in future to rid itself of “dysfunction”.

“I think this has been a terribly painful and terribly shocking experience for the board as it has been for me. I won’t be going on the board again,” Mr Packer said.

“I think the board will be more independent than it was in the past.”

Mr Packer told the inquiry today he accepts “some” responsibility for Crown’s aggressive sales culture when it came to its international VIP team, which carried a “higher risk appetite” than the rest of the business.

“Do you accept any responsibility for that?” counsel assisting, Naomi Sharp SC, asked.

“I accept some,” Mr Packer said.

The inquiry was taken to a report in which regulators and law enforcers said junket operations in Australian casinos were vulnerable to exploitation by organised crime to launder money.

Ms Sharp asked Mr Packer if he agreed with that assessment.

“With the benefit of hindsight, I agree,” Mr Packer replied.

“Did you understand at the time you were executive chairman of Crown Resorts?” Ms Sharp asked.

“I thought we had better compliance than we did,” he said.

Crown’s new Sydney tower in Barangaroo. Picture: David Swift

It’s alleged Crown Resorts partnered with tour operators, sometimes called junkets, that were backed by organised crime syndicates, including an allegedly triad-controlled drug trafficking and money laundering group.

It also allegedly failed to rigorously enforce anti-money laundering controls.

Mr Packer said he understood that at all times the risk of infiltration by organised crime groups was there.

He also agreed he was one of the “key” driving forces in bringing the Suncity junket into Crown casinos in Australia.

Mr Packer said he met with Alvin Chau, alleged to be a triad gang member, once in Macau around 2014, who he understood was associated with the Suncity junket.

Chau was banned from entering Australia and also alleged to be head of the money laundering group known as The Company.

“So your meeting was to build a business relationship with him?” Ms Sharp asked.

“I believe that’s fair,” Mr Packer replied.

Mr Packer also met with Song Zezhai in Australia around the same time for a “courtesy meeting” and understood he was a junket operator at Crown.

Mr Song was allegedly named in a Chinese court in 2003 as running a large illegal gambling syndicate in eastern China that engaged in extortion. He was also allegedly named in a 2016 proceeds of crime case in the Victorian Supreme Court.

Mr Packer told the inquiry it was the Crown board’s job to set the company’s risk appetite for junkets.

“I was assured they were junkets of good repute,” he said.

Mr Packer added it was up to former Crown CEO Rowen Craigie to set the risk appetite for junkets.

“I saw that as Mr Craigie’s job,” he said.

James Packer. Aaron Francis/The Australian

PACKER DIDN’T TURN MIND TO MONEY LAUNDERING

Mr Packer was asked about mainland China’s moves in 2013 to tighten people’s ability to move money out of the country.

At the time, Crown was having a “bad period” recovering debts from Chinese high rollers.

Mr Packer was asked if he knew about junkets, or tour operators, playing a role in helping players move their money out of China to avoid the tightening capital restrictions.

“Did you understand (junkets) played any role in assisting patrons to move their money out of China for the purpose of gaming and thereby circumventing mainland China restrictions on capital flow?” counsel assisting Naomi Sharp SC asked.

“Yes, I believe so,” Mr Packer replied.

“In view of that understanding, did you turn your mind at that time as to whether junket operators, in performing that role, may have been facilitating money laundering?” Ms Sharp asked.

“No, I didn’t,” Mr Packer said.

“Is it a matter that simply never occurred to you?” she asked.

“I can’t recall,” Mr Packer said.

“Are you sure about that?” Ms Sharp asked again.

“I believe so, Ms Sharp.”

James Packer gives evidence on Thursday.

“The article asserts Crown itself has a robust process for vetting junket operators. That assertion is not correct, is it?” Ms Sharp asked.

“With the benefit of hindsight, I agree with you,” Mr Packer said.

Ms Sharp asked Mr Packer whether publishing the open letter that contained inaccuracies reflected poorly on Crown’s directors.

“Not at the time if the directors have been given the wrong information. With the benefit of hindsight, I accept it reflects poorly,” Mr Packer said.

James Packer tours Crown Resorts Barangaroo site.