Donald Trump owned up to ‘dealing’ with the mob

Donald Trump told authorities he dealt with the mafia when bidding for a casino licence at Darling Harbor in the 1980s.

Donald Trump was part of an unsuccessful tender in 1987 for the Sydney casino licence with Queensland-based Kern Corporation.

Donald Trump admitted to NSW authorities to dealing with the mafia when he was bidding for the licence of Sydney’s first casino in the 1980s, a former Treasury official claims.

Now US President, Mr Trump was part of an unsuccessful tender in 1987 for the casino licence with Queensland-based Kern Corporation, headed by the late developer Barry Paul.

Part of the rigorous tender process included assessment by the Casino Control Division within Treasury and the NSW Police Board, which recommended rejecting the Trump bid because of “Trump mafia connections”.

Then director of the CCD Charles Shields told The Weekend Australian that Mr Trump admitted to using mafia suppliers. “I can understand the Police Board ­report referring to Trump’s links to the mafia because he told us he did buy concrete from the mafia, who controlled that industry in Atlantic City, but he said he ­always got three quotes from concrete suppliers and always took the lowest quote,” he said.

“It wasn’t our job (in the CCD) to do probity checks on casino proposals but I can’t question the police report, even though we didn’t see it at the time.”

The Australian has revealed that the Police Board advised the NSW government it would be “dangerous” to go ahead with the Trump-Kern tender.

Cabinet minutes of the Unsworth Labor government from May 1987 had a summary of the Police Board’s position and show they considered the Trump-Kern bid to be unacceptable. “Atlantic City would be a dubious model for Sydney; in our judgment the Trump mafia connections should exclude the Kern/Trump consortium,” the report said.

The preliminary report by the CCD from January 1987, signed off by Mr Shields, said Mr Trump’s two casinos in Atlantic City had a reputation for design excellence and successful management.

The report also said the New Jersey Casino Control Division was reputedly one of the more stringent gambling authorities in the US, something Mr Shields stood by this week.

“Trump may have had links to the mafia, as many in the casino business did in those days, but if he was really crook, they would have had him for breakfast,” he said.

However, the report said the Trump-Kern tender did not meet the standard of competitors Genting and Harrah, but was in the middle of the field.

“The major shortcomings were the lack of information regarding existing internal control systems, pricing policies and a letter from Trumps’ (sic) auditors,” the report said.

“Reports of procedural irregularities in regard to the offsetting of complimentary travel vouchers against gambling debts is being ­investigated.”

An assessment from Canadian Imperial Bank of Commerce ­examined the financial viability of the tenders and reported Mr Trump was planning to personally invest in the project.

Mr Shields said Mr Trump was “unforgettable … In the 1980s, (he) was a very colourful guy, very personable … he was flashy and fun and certainly enjoyed his wealth, and liked showing it off.”

Additional reporting: Emily Ritchie