Crown casino inquiry: Commissioner’s verdict on key Crown players
Patricia Bergin found Crown needs ‘a fresh start’ if it wants to be regarded as suitable to hold a licence for Barangaroo.
Inquiry Commissioner Patricia Bergin found that Crown needs to “achieve a fresh start and emerge a very much stronger and better organisation” if it wants to be regarded as suitable to hold a licence for Barangaroo.
Here’s what Ms Bergin has to say about the key players at the gaming giant.
Ken Barton – chief executive officer
“Mr Barton has demonstrated that he is no match for what is needed at the helm of a casino Licensee or a close associate of the Licensee. His problems will not be cured by the appointment of people expert in the field who report to him.
“The Authority would be justified in concluding that it cannot have any confidence in dealing with Mr Barton as a director of the Licensee or Crown.
“Mr Barton effectively pleaded ignorance of the anti-money laundering landscape until apparently making himself more aware of it in 2019/2020. Such a plea is also devastating for Crown. What Mr Barton should have done in 2014, as he finally recognised six years later, was to conduct a proper review of the Southbank and Riverbank bank statements and protect Crown and the casino licensees from the exploitation by organised criminal groups.”
Helen Coonan– chairman
“Ms Coonan accepted the serious corporate failings of Crown and notwithstanding
those corporate failings is willing to, as she put it, stay the course. That commitment
in the circumstances of the evidence that was exposed during the course of this
Inquiry is no small matter. The burden of reformation will be great.
“The review of the chairman‘s evidence demonstrates that her character, honesty and integrity has not been and could not be called into question.
“The Authority would be justified in accepting any commitment or undertaking given personally and/or on behalf of Crown that may be proffered by the chairman in respect of the future operations of Crown and/or the Licensee taking into account the other matters of significance to which reference is made elsewhere in the Report.”
Michael Roy Johnston– non-executive director at Crown, finance director of Consolidated Press Holdings
“The sad conclusion is that Crown’s corporate governance problems and risk management problems were exacerbated by Mr Johnston’s multiple and concurrent roles at the Management level of Crown’s operations. There is no doubt that the lines of reporting were blurred; risks were not properly identified; identified risks were not properly notified; conflicts or potential conflicts were not recognised; and the corporate needs of Crown were not given precedence over the corporate needs or desires of CPH.
“It is obvious that many in Crown and CPH have relied upon the services that Mr Johnston has provided over the years whilst he has been a Crown director. That includes Mr Packer, Mr Alexander and Ms Coonan. However the problems identified in the analysis of Mr Johnston’s evidence establish that he should not have been involved in any managerial role with Crown nor on any Board Committees particularly relating to corporate governance or risk management.
“Mr Johnston has served as a director on the Crown Board for over 13 years. It would be appropriate for him to conclude his tour of duty as soon as possible to enable the Authority to be comfortable in due course that Crown will be a suitable person to be a close associate of the Licensee.”
Andrew Demetriou– non-executive director
“This was a most unedifying performance by Mr Demetriou (at the inquiry hearings). It is inexplicable why Mr Demetriou did not accept the proposition that was put to him that a finding could be made, rather neutrally, that he was trying to assist by being accurate. But he persisted with his version of events that clearly cannot be accepted. Unfortunately it reflects very badly on his judgment first of all to take notes into the witness box, albeit in a virtual setting; then to read from them; but more importantly to deny that he was reading from them.
“It is difficult to understand what might reasonably be made of this quite bizarre performance. Sadly the balance of Mr Demetriou’s evidence is affected by it. The Authority would be justified in lacking confidence in placing reliance upon Mr Demetriou in the future.”
John Alexander — former chief executive and chairman
“Mr Alexander was in the most powerful positions in Crown during the period 1 February 2017 to January 2020 as chairman of the board and CEO. Although he inherited the disastrous aftermath of the China arrests and had to work through the process after Mr Packer resigned from the Board in March 2018 due to ill health, Mr Alexander’s stewardship led Crown to disastrous consequences.
“This included processes that exposed its directors to conflicts of interest and remote management by Mr Packer and a failure to protect Crown’s casino licensees from the infiltration of criminal elements through, at the very least, its lack of robust Junket approval processes and a lack of proper oversight and monitoring of risks to money laundering in its subsidiaries’ bank accounts.
“Mr Alexander’s perception of his relationship with Mr Packer was either blind to the reality or lacking in candour. Mr Alexander was fulfilling two roles and it is apparent that he could not or would not see the reality of being managed remotely by Mr Packer.”
Harold Mitchell — non-executive director
“Harold Charles Mitchell was appointed as a non-executive director of Crown on 10 February 2011.
“On 4 November 2020 declarations were made in the Federal Court of Australia pursuant to section 1317E (1) of the Corporations Act that Mr Mitchell contravened section 180(1) of the Act in that, in his capacity as a director of Tennis Australia Limited (TA)”,
“The explanatory comments made by the trial judge that, notwithstanding the seriousness of the matters, Mr Mitchell did not intend to harm the company and in fact intended to help it, may tend to temper the seriousness of the declarations and fine.”
“It is not clear that any appeal has been or may be lodged by Mr Mitchell against the civil penalty declaration and/or the imposition of the pecuniary penalty he suffered recently in the Federal Court of Australia.
“It is suggested that to ensure their suitability, their directors should be free from any civil penalty declaration or consequent pecuniary penalty. It will be necessary for the Authority to discuss this matter with the Chairman of Crown.
“It is presumed that Mr Mitchell will further reflect on the need to refresh the Crown Board and take steps to expedite that process.”
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