NSW casino inquiry told James Packer pushed risky high-roller business at centre of money-laundering claims

Reclusive billionaire James Packer was the driving force behind Crown’s risky junket business, but the board was oblivious, an inquiry has heard.

The NSW Independent Liquor and Gaming Authority inquiry is determining whether Crown is fit to hold a gaming licence for the new $2.4 billion Barangaroo development in Sydney after explosive media reports last year.

The reports included leaked footage of huge amounts of cash moving through a room at Crown Melbourne dedicated to Suncity, Macau’s largest junket operator, which sparked the inquiry.

As the probe entered its final days this week, Crown announced financial crimes regulator Austrac was investigating potential non-compliance with anti money-laundering laws.

On Wednesday, Geoff Dixon, who retired as a Crown director in October, told the inquiry there were many matters he was not informed about despite being chair of the risk management, and nomination and remuneration committees for many years.

Mr Dixon, a former Qantas chief executive, said he was not informed about Mr Packer’s deal to sell a near 20 per cent stake in Crown to Hong Kong group Melco, which is linked to a businessman with allegedly shady connections, the late Stanley Ho.

“I think it was on the news the next day,” Mr Dixon said when asked how he first heard about the deal.

“I certainly wasn’t informed. No one called me to say, ‘Look, we’re selling shares’ — James or his people.”

Other directors were not told but should have been, Mr Dixon said.

Melco only ended up buying 10 per cent, dumping its plans to buy the second tranche in February.

Counsel assisting Adam Bell noted Crown’s agreements with the NSW regulator required the company to prevent Mr Ho or his associates becoming a shareholder.

“This is a sale that by any means raised issues,” Mr Dixon said. “If I’d been informed, I would have done a range of things.”

The inquiry last month heard Mr Packer was insistent the deal go through.

Michael Johnston, an executive of Mr Packer’s private investment vehicle Consolidated Press Holdings and a Crown director, confirmed at the inquiry the reclusive billionaire had said “It’s my life and I’m going to overrule you” when he believed Mr Johnston was trying to get him to focus on alternative transactions.

On Wednesday, Commissioner Patricia Bergin made comments in “fairness” to Crown’s chief executive of Australian Resorts, Barry Felstead, who has been blamed for not passing on a lot of serious information to the board, including knowing staff in China were expressing fears about their safety well before their arrest in 2016.

Ms Bergin asked Mr Dixon: “We have a structure that looks, on one view of it, as though Mr Packer was running the VIP side of things effectively or very interested in it, with Mr Felstead working very hard … on the ground and the rest of the board not knowing of these shocking risks, you understand that?”

“Yes I do … I’ve conceded that. I don’t think I’ve ever communicated with Mr Packer or Mr Johnston on any of these issues,” Mr Dixon replied.

“I don’t think this is all on Mr Felstead’s head, but I still think, no matter what, there is a lot of things that could have been elevated to the board and to the committees by Mr Felstead.”

Mr Dixon was quizzed about Mr Packer hand-picking almost every director on the board and why all but one had no prior experience in the gaming industry, saying, in his defence, there was a “small gene pool” of senior Australian executives and selecting people who were known and trusted was “not a bad process”.

He also revealed Crown did not offer training around money-laundering or infiltration by organised crime.

“It was learn on the job,” he said.

Mr Dixon’s testimony comes a day before the Crown annual general meeting, where four directors, including chair Helen Coonan and non-executive director Andrew Demetriou, a former AFL boss, are up for re-election.

Ms Coonan, a former Liberal senator, revealed at the inquiry on Friday that Mr Felstead would leave the company the end of the year after reaching an agreement with the board.

He was “getting very near to wishing to retire” and “recent events have escalated his desire to do that”, she said.

Ms Coonan admitted Crown facilitated money laundering on Tuesday.

She was asked by Ms Bergin if she agreed “the bystander could reasonably conclude that this conglomerate of ineptitude, lack of attention and failing to intervene facilitated money-laundering?”

“Yes … it was the turning a blind eye that I didn’t agree with,” Ms Coonan replied.

She was also asked if the slated opening date for the Barangaroo venue of December 14 was appropriate given the inquiry will hand down its findings on February 1. She replied the NSW Government had set a development milestone date of February 14.

“So whether or not we open, with the greatest of respect, is not entirely Crown’s decision, but I appreciate … the sensitivities,” she said.