Crown a study in failure

THE commissioner heading an inquiry into Crown Resorts has lashed the board of the James Packer-backed company for failing to learn from its mistakes.

During final submissions by Mr Packer’s private company, Consolidated Press Holdings, commissioner Patricia Bergin yesterday questioned why the

Crown board failed to take notice of warning signs from adverse publicity for more than a decade.

“The board is where the buck stops. They didn’t look backwards,” she said. “The absurdity of not learning from your past is … breathtaking.”

The inquiry is being hosted by New South Wales’ Independent Liquor and Gaming Authority, which is assessing whether Crown should keep the licence for a casino the company is due to open in Sydney next month.

Ms Bergin’s comments came as the Crown board broke ranks for the first time.

Former director and Macquarie Group executive Ben Brazil requested through his lawyer yesterday that he be excluded from any negative findings against the board.

In a special submission, Mr Brazil’s lawyer reiterated the banker had, before he left the board in 2017, “thumped the table” demanding a full inquiry into the arrest of Crown’s staff in China in 2016. The review was abandoned by fellow directors after his departure.

It was also claimed that in November 2016, Mr Brazil asked the board that a legal review by law firm Minter Ellison of the China arrests be expanded to look at Crown’s dealing with junket operators.

Counsels assisting the inquiry have asserted the failure by the board to properly review the China arrests and Crown’s dealings with junket operators linked to organised crime make it unsuitable to retain the Sydney licence.

Crown will begin making its submissions on Monday.

Separately, a report tabled to the Senate has revealed the Australian Transaction Reports and Analysis Centre knew for years that casino junket operators were a risk for potential money laundering but flagged it was powerless to stop it. Austrac also noted casinos appeared to underestimate and not take seriously moneylaundering risks associated with overseas junkets.

Austrac last month launched investigations into Crown for alleged breaches of Australian anti-money-laundering laws.