The new Chief Executive Officer of the struggling Australian gambling giant Crown Resorts has defended the company’s efforts to bring changes to its operations and structure after facing the NSW Commissioner’s damning report.
During the Victoria state inquiry hearing that took place earlier today, Steve McCann shared that he was concerned about many things before taking over his new position at the company in June. He was appointed as the CEO of the struggling casino operator after the regulator announced its findings of Crown Resorts’ links to criminal organisations and the inappropriate control that a James Packer-related board has had over the company.
As Casino Guardian previously reported, the regulator in the state of New South Wales (NSW) said that Crown Resorts was unsuitable to hold its gambling operating licence for its newest casino – the AU$2.2-billion Barangaroo venue in Sydney. The findings triggered a number of top-level departures, including of the then-CEO and predecessor of Mr McCann. They also prompted inquiries in the states of Victoria and Western Australia where the company operates two casino venues.
The new Chief Executive Officer of the group has shared that a significant number of employees are crying out to stop inappropriate conduct at the company and to take part in the process of restoring the company’s good name.
Ongoing Inquiries in Victoria and Western Australia Follow Money Laundering Reports
In February 2021, the regulatory body in New South Wales announced that sweeping changes were needed at Crown Resorts, especially when it comes to the casino company’s board and culture. Otherwise, the company would not be allowed to keep its operating licence for its Sydney-based gambling venue.
The damning report of NSW Commissioner Patricia Bergin followed claims of serious governance failures and indifference to the fate of the 19 casino staff members arrested in China back in 2016, as well as some shocking examples of money laundering taking place at the company’s casinos through so-called junket operators.
At the hearing in the state of Victoria that took place earlier today, Mr McCann confessed he was not informed about underpayment of gambling tax amounting to hundreds of millions of dollars until 6 days into his new CEO position. He, however, rejected the Royal Commission’s suggestions that the delay indicated poor governance of the gambling company. He explained he had not found the delay concerning or surprising because the company had been under the impression that it had provided the entire information it had been supposed to disclose.
The ongoing inquiries in the states of Victoria and Western Australia are aimed at considering all the evidence for money laundering that has allegedly been taking place at the company’s casinos for years, as well as some poor governance that has been found in the venues and in the gambling group as a whole.
- Author
Daniel Williams
