Casino regulator ILGA backs Helen Coonan as boss of James Packer-backed Crown Resorts, as Barton quits as CEO

Ken Barton has stepped down as CEO of Crown Resorts, with Helen Coonan to be executive chairman until he is replaced.

Helen Coonan is expected to deliver Crown’s half-year results presentation on Thursday. Picture: NCA NewsWire/Joel Carrett

Embattled Crown Resorts CEO and managing director Ken Barton will step down today, with chairman Helen Coonan to assume the role as executive chairman while a replacement boss is found.

Mr Barton’s resignation comes after his conduct was panned by the Bergin report into the company’s suitability to operate its Sydney Casino, but also comes several days after similarly criticised Crown figures stood down.

In a statement to the ASX the company said Mr Barton will receive entitlements agreed to under his employment contract and will continue to assist Ms Coonan “in coming weeks” to ensure a smooth transition.

Mr Barton said he was confident the business was on the right track to restore its reputation.

“I would like to thank the Crown Directors for the opportunity to work with them on implementing Crown’s strategy,” he said.

“Over the past 10 years, Crown has established itself as a great Australian company with world-class assets and I am absolutely certain the business is now on the right path as it works to restore confidence in its operations.

“I am committed to assisting with the transition to new leadership.”

Ms Coonan, whose elevation to executive chairman was reported earlier by The Australian, thanked Mr Barton for his time with the company.

“I would like to thank Ken for his dedication and commitment to Crown,” he said.

“Ken joined Crown more than a decade ago and has played an invaluable role with the business, initially as CFO and in the past year as CEO. Ken has always put the interests of Crown first.”

Crown’s outgoing CEO Ken Barton, giving evidence to the casino inquiry last year.

Ms Coonan’s appointment comes shortly after Western Australia’s most senior casino regulator stood aside after it was revealed he had engaged in regular social activities such as fishing trips with members of Crown’s legal and compliance team.

Department of Local Government, Sport and Cultural Industries deputy director general Michael Connolly - who also fills the legislatively-enshrined role of the state’s chief casino officer - stood aside following a series of questions from radio station 6PR.

Earlier, the chairman of the NSW casino regulator, Philip Crawford, resoundingly supported the elevation of Ms Coonan to the executive chairman role at Crown for an interim period while the company conducts a comprehensive search for a new cleanskin chief executive.

Crown’s board met for only 30 minutes on Friday evening to discuss a succession plan for Mr Barton, and Crown’s lawyers continued working over the weekend to finalise the wording of a statement released to the Australian Securities Exchange on Monday.

Mr Crawford, who spoke to Ms Coonan over the weekend, said he had already developed a strong rapport with the former Liberal minister who will lead the reform of the James Packer backed casino company following the damning findings of the Bergin Inquiry.

Ms Coonan was the only Crown figure to emerge totally unscathed from the Bergin report released last week, which recommended Crown be found unsuitable to retain its Sydney gaming licence.

She has since vowed to implement “root and branch” change at the embattled gaming company.

“I get a lot of direction out of Commissioner Bergin’s report. It is gratifying to have someone within the company with whom I can have a positive relationship to achieve change,’’ Mr Crawford told The Australian on Sunday.

“My read on it is she is accepting that (executive chairman) role. It will take them some time to get a new CEO in and she would be the ideal person to take over that role for an interim period. That would have my support. It is good to have someone like her steering the ship. No doubt they will find someone else to be CEO, which will be subject to probity checks.”

Ms Coonan is expected to deliver Crown’s half-year results presentation on Thursday but the board — which is scheduled to meet again on Wednesday — is said to be very keen to ensure a clean transition of Mr Barton’s important relationships, especially with the company’s lenders.

He has hired his own legal counsel, believed to be K&L Gates partner Mark Dobbie, to represent him in negotiations.

He was chief financial officer for many years before being elevated to the CEO role last year.

However Mr Barton came in for heavy criticism in the report by NSW Supreme Court judge ­Patricia Bergin released last week, which found serious corporate failings and made adverse findings against key directors.

Helen Coonan has been backed to take on the role as Crown executive chair for an interim period. Picture: Adam Yip

The report for the NSW Independent Liquor & Gaming Authority found that he was “no match for what is needed at the helm of a casino” and that he failed the prevent money laundering occurring through Crown’s bank accounts.

The Australian reported on Friday that Ms Coonan will receive a remuneration package of at least $3m annually and an office in Crown’s new Sydney resort at Barangaroo.

Mr Crawford also on Sunday elaborated on his rationale for calling for the immediate resignation of Crown General Counsel and Company Secretary Mary Manos.

“She was part of the old culture and I really think she needs to go.

The way they played their cards in the inquiry was very adversarial. It didn’t need to be. It cost us a lot more money than it should have,’’ he said.

“My understanding is Helen Coonan gets my point and you will see Mary Manos moved on. I made it very clear to Helen that she should go and you will find that will happen. The General Counsel role is key in dealing with the regulator and we need to have confidence in the person that carries out that role.”

In her appearance before the Bergin Inquiry Ms Manos said the gaming giant had failed to scrutinise its bank accounts for signs of illegal activity after allegations of breaches of the anti-money-laundering laws.

The board of ILGA is also believed to have been angered by her comment in the inquiry that should could not be expected to “get down on (her) hands and knees and look through printed bank statements”.

While Minter Ellison advised Crown during the inquiry, rival firm Allens has now been engaged by the company to provide advice.

Crown has been left for now with seven directors, pending the resignation of Mr Barton, with Harold Mitchell the only board member from Victoria — the state where the company’s biggest asset in Melbourne’s Crown casino and three hotels are situated — following the resignation last week of Andrew Demetriou.

Mr Mitchell is understood to be determined to maintain his role but Mr Crawford indicated on Friday that he would also be under pressure to leave the board.

Ms Bergin recommended he step down if a civil penalty or declaration was made against him in relation to the “minor breaches” he was found to have made as director of Tennis Australia.

Last Thursday the head of the Victorian Commision for Gaming and Liquor Regulation Catherine Myers said there was an ongoing VCGLR investigation into Mr Mitchell, who had been asked to explain how he was a suitable person to be an associate of Crown Melbourne.

Mr Crawford is also examining the position of Perth-based Crown director John Poynton, who last week resigned his consultancy with James Packer’s private company Consolidated Press Holdings and is now an independent Crown director, which has been criticised by some.

Mr Poynton is determined to now closely align himself with Ms Coonan and cleanskin directors Jane Halton, Toni Korsanos and the newly appointed former Sky City chief executive Nigel Morrison.

CPH, which owns 37 per cent of Crown, also announced last Wednesday that its other two nominee directors on the board, Guy Jalland and Michael Johnston, would be stepping down.

While Ms Bergin proposed the NSW government impose a 10 per cent shareholding cap on any single investor in Crown, she also offered Mr Packer an unexpected olive branch: that he could apply to the casino regulator for probity approval to maintain his holding.

If the company can rehabilitate itself and make Barangaroo a success, this could allow Mr Packer to rebuild his investment and exit from the share register at a more attractive position than where Crown’s share price is today.

Mr Crawford has stressed that the regulator would not seek to “boot” Mr Packer “off the share register”, but he is concerned about CPH maintaining its full voting rights attached to its shareholding because of the power it would still give the billionaire over Crown.

It is believed he will seek to discuss the issue with CPH chief executive Guy Jalland to find a resolution to reduce CPH’s voting rights in the coming weeks.

Ms Coonan is believed to talking to two other potential independent directors who are interested in joining the board. One is said to be from Melbourne.

Mr Crawford said ILGA would “facilitate a pretty quick probity check on any new directors”.

The ILGA board has its monthly board meeting on Wednesday and Mr Crawford said he would be seeking a further meeting with Ms Coonan this week.

He said he would also hold discussions with the VCGLR and the Western Australian gaming regulator after they both contacted him last week.