NSW Gaming regulator to fast-track new Crown director approvals

NSW gaming regulator chairman Philip Crawford says he will do whatever he can to help fast-track probity approvals for new Crown Resorts directors.

A string of directors have now quit the Crown board following the NSW casino inquiry’s findings. Picture: AFP

NSW gaming regulator chairman Philip Crawford says he will do whatever he can to help fast-track probity approvals for new Crown Resorts directors as he welcomed the decision of Perth-based businessman John Poynton to resign from the board of the James Packer-backed company amid concerns about his independence from the casino billionaire.

Mr Poynton’s resignation as a director of Crown Resorts and as chairman of Crown Perth on Monday closed the book on the old guard of the company following a government inquiry’s finding the company is unsuitable to operate a casino in NSW.

Mr Crawford had openly declared Mr Poynton’s links to James Packer to be an issue for the NSW Independent Liquor and Gaming Authority and his board.  Last month, Mr Poynton resigned a consultancy agreement with Mr Packer’s private company Consolidated Press Holdings, which holds a 37 per cent stake in Crown, and became an independent director of the gaming giant.

John Poynton had initially resisted pressure to quit Crown’s board. Picture: AAP

“I just thought it should happen. John Poynton is meant to be a pretty impressive and capable man. But it is simply the fact he was previously a nominee of CPH. (ILGA inquiry head) Patricia Bergin left it to the authority to deal with the question and we made our position clear,’’ Mr Crawford told The Australian.

It is understood Crown’s biggest institutional shareholder, Perpetual, had believed Mr Poynton could add value on the board as its sole Perth-based director, but shared the regulators’ concerns about his independence.

Mr Poynton’s resignation means that Crown is now facing an inquiry in West Australia and a royal commission in Victoria with just four board members: executive chairman Helen Coonan, Antonia Korsanos, Jane Halton and John Horvath, who will soon resign.

Former SkyCity boss Nigel Morrison is set to join the board after passing the requisite probity checks.

Mr Horvath, currently the deputy chairman, is expected to now delay his departure until new board members are found to ensure Crown has four directors.

Mr Crawford, who is meeting with Ms Coonan once a fortnight ahead of Crown’s first deadline in two weeks to respond to what he termed ILGA’s “shopping list” of queries, said the regulator was examining ways to fast-track probity approvals for new directors.

“We are looking at that at the moment. I will do whatever I possibly can to assist the probity process,’’ he said.

“When I last looked Nigel Morrison had not completed some of the paperwork required.”

Crown has appointed Deloitte to undertake a compliance audit of its bank accounts, which was required by the Bergin report and ILGA.

Mr Crawford said he was not concerned about a loss of management experience in the company and on the board after Harold Mitchell, Andrew Demetriou, Guy Jalland and Michael Johnston resigned, along with CEO Ken Barton, company secretary Mary Manos and CLO Joshua Preston.

“I’m sure Helen Coonan is talking to some very able people with the sort of skills needed. In terms of Crown’s structuring around compliance and risk management they have been found wanting. Some of the names I’ve heard mentioned are impressive people in those fields.”

Helen Coonan in front of the Crown Sydney building. Picture: Adam Yip

Mr Crawford added he was not privy to the names of potential new Crown directors in talks with Ms Coonan. News of Mr Poynton’s resignation came after he received a letter late last week from Arnold Bloch Leibler partner Leon Zwier, who is advising Ms Coonan, asking him to resign given the concerns surrounding his independence.

Mr Poynton considered his position over the weekend with his Melbourne-based Jones Day partner Tim L’Estrange, the former general counsel and company secretary at ANZ.

Last week he was resisting calls to step down after challenging Mr Coonan in some recent board meetings, including on her decision to hire Mr Zwier.

In a statement on Monday he declared he was a “fit and proper person” to remain on the board of the Crown, but said he resigned “in the best interests of the gaming company and its shareholders”.

“The Bergin inquiry made no findings against my integrity or performance on the Crown board or my status as a fit and proper person,’’ he said.

“But given the advice from (ILGA) about perceptions about my independence arising out of my past relationship with James Packer and CPH, I believe resigning is the right thing to do.

“This is despite Ms Bergin specifically noting that my commitment and contribution would be ‘integral’ to Crown’s future success.”

Moody‘s Investors Services on Monday confirmed the Baa3 issuer rating of Crown, noting it had “good potential to maintain its investment grade credit profile, and is willing and able to remediate shortcomings identified by the Bergin Inquiry in New South Wales, as well as any additional shortcomings that may be identified by regulatory investigations in other states”.

But it retained a negative rating outlook, noting the remediation steps required for Crown to reach suitability to hold its Sydney licence were far-reaching and complex.

Crown shares closed 1.5 per cent higher at $10.10.