ASX chief Elmer Funke Kupper steps down amid possible Tabcorp probe

Elmer Funke Kupper has abruptly quit as ASX chief amid a bribery investigation into his former company, Tabcorp.

Elmer Funke Kupper has resigned as CEO of the ASX.

ASX chief executive Elmer Funke Kupper has said he has done nothing wrong but has quit the stock market operator and stood down from gaming major Tabcorp so these companies are not impacted by a police probe into bribery allegations.

Mr Funke Kupper told The Australian he thought about the decision to reign over the weekend and has opted to “do the right thing”.

Mr Funke Kupper late Monday abruptly quit as head of Australia’s main securities exchange as police probe bribery allegations involving his former company, gambling giant Tabcorp Holdings.

The resignation is effective immediately, ASX Ltd said.

“It is likely that the investigation will take some time and while I believe that I have done nothing wrong there is a hard reality that this will start to affect the companies that I represent,” Mr Funke Kupper told The Australian.

“I thought over the weekend and decided that I should stand above this and make sure that I do the right thing by the companies I represent”.

The move comes after the Australian Federal Police recently launched an investigation into payments made by Tabcorp in 2009 as it considered entering the Cambodian sports betting market.

Mr Funke Kupper was CEO of Tabcorp from 2007 to June 2011, when he joined ASX Ltd (ASX).

“The ASX board accepted that Elmer wanted to direct his full focus to the investigations which may be made into the Tabcorp matter and not have them interfere with the important role of leading the ASX,” ASX chairman Rick Holliday-Smith said.

Mr Funke Kupper has also stood down from the Tabcorp’s (TAH) board until the AFP investigation is complete.

Mr Holliday-Smith will take on an executive role while a national and international search is undertaken for a new managing director and CEO, ASX said.

The ASX said Mr Funke Kupper would be paid in lieu of the notice period in his contract.

Tabcorp last week confirmed it had been told the AFP had started an investigation into Tabcorp’s proposal in 2009 to enter the Cambodian sports betting market.

Tabcorp said the AFP investigation referred to reports in Fairfax Media about the Cambodian payment. The report had outlined Tabcorp was under scrutiny for a $200,000 payment to the family of Cambodian Prime Minister Hun Sen.

“In 2009 Tabcorp explored a business opportunity in relation to the Cambodian sports betting market,” Tabcorp said.

“At that time, some Asian countries were considering deregulating sports betting. Tabcorp chose not to pursue the opportunity and the business was never operational.”

Tabcorp said that it would fully co-operate with the AFP ­investigation.

Mr Funke Kupper said last week he could not recall the payment made by Tabcorp, but that it would be inappropriate for him to comment further while the AFP was making inquiries.

He said he would co-operate fully with any investigation and said then he was comfortable continuing as a Tabcorp director.

Mr Holliday-Smith said today of Mr Funke Kupper: “Elmer has demonstrated leadership and energy during his time at ASX. He hands over a stronger team and a core franchise well positioned for future opportunities. His legacy is a globally competitive, more externally focused company, which is committed to innovation and investment in the customer services and infrastructure that are at the heart of Australia’s financial marketplace.”

Prior to joining Tabcorp, Mr Funke Kupper held several senior positions with ANZ bank. Previously, he was a senior management consultant with McKinsey.