Star Entertainment clean out begins as three executives cash in their chips

Three executives pinpointed by Matt Bekier have departed before the company’s directors are hauled before a royal commission-style inquiry.

Greg Hawkins, pictured with Jennifer Hawkins at The Star in March, 2017, has stepped down from the group, along with chief financial officer Harry Theodore and chief legal and risk officer Paula Martin, Photographer: Belinda Rolland © 2017

The three Star Entertainment executives who former CEO Matt Bekier said let him down or showed bad judgment have resigned from the troubled casino group before its board is set be hauled before a royal commission-style inquiry next week.

And the company has signalled more departures to come as it completes “board renewal” and reels from damning revelations from the inquiry headed by Adam Bell SC.

Late on Friday, chief financial officer Harry Theodore stepped down — as previously flagged by The Weekend Australian — along with chief legal and risk officer Paula Martin and chief casino officer Greg Hawkins.

Their resignations come ahead of executive chairman John O’Neill — who assumed chief executive duties in March following Mr Bekier’s departure - and other directors are set to appear before an inquiry next week into Star’s fitness to hold a NSW casino licence.

In a statement to the ASX, the company said the three executives would work with Mr O’Neill to “transition their executive responsibilities in an orderly manner”. A search for their replacements has begun.

“The Star also refers to its announcement of April 1, 2022 where the board acknowledged the need for accelerated board change. Further announcements will be made in relation to board renewal and in connection with permanent executive appointments once finalised,” the company said.

It comes after the Bell inquiry heard last week that Star Entertainment’s board was told senior executives may have misled NAB and China Union Pay about $1bn worth of suspicious transactions but failed to ask any questions to confirm the “serious” accusation.

Mr Bell issued a rebuke to Star’s directors, saying they must accept responsibility for the company’s “unethical” conduct and overseeing a “systemic cultural problem”.

“The board has to ensure that their organisation has systems and processes (to) get them the right information needed to perform their oversight and monitoring functions,” Mr Bell said.

Mr Bekier – who resigned in late March after eight years at the helm – told the inquiry that he felt “let down” by a slew of executives, including Ms Martin, Mr Hawkins and general counsel Oliver White, who has also left the company.

And Mr Bekier said Mr Theodore, the executive he was closest to, showed ­“really bad judgment”.

Mr Theodore admitted to the inquiry last week that he engaged in unethical and deceptive behaviour – ultimately misleading the People’s Bank of China – over Star’s “sham” practice of disguising almost $1bn in gambling transactions on Chinese debit cards as hotel charges.

Mr Bekier said although Ms Martin was “extremely talented with a huge work ethic, she assumed a lot of the problems of the company”.

“And I understand it, (Ms Martin) tried to solve them herself instead of escalating them and that unfortunately has led to subsequent problems for the company.”

But Mr Bekier was particularly disappointed with Mr Hawkins, who counsel assisting the Bell review Naomi Bell SC accused of misleading the NSW Bergin Inquiry into Crown Resorts about illegal Chinese cash transactions at an exclusive gaming salon at Star’s Pyrmont casino.

Mr Hawkins told the Bergin inquiry in August 2020 that Chinese junket Suncity would not be able to exchange cash for chips at the gaming salon, known as Salon 95, which breached anti-money laundering and casino law. This was despite Mr Hawkins issuing SunCity with not one but two warning notices about such behaviour.

“I’m disappointed in Salon 95. (Mr Hawkins) raised the risk with me on that; I thought the issues have been resolved. And I represented to the board and outside investors that the things that we learned about Crown would never happen,” Mr Bekier said.

“If the board of directors had known any of these things, they would have supported me in shutting down that business a long time ago.

“There needs to be a full revamp and reorganisation of that business under fresh leadership.”