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More changes at Crown Resorts flagged for scandal-plagued casino

Melissa Iaria and Angie RaphaelNCA NewsWire
The Crown complex near Perth today, August 10, 2021. Perth Casino Royal Commission - The Commission has been established to inquire into and report on the affairs of Crown Casino Perth. The Commission will examine the regulatory framework and any matters that might enhance the Gaming and Wagering Commission's future capability and effectiveness.
Camera IconThe Crown complex near Perth today, August 10, 2021. Perth Casino Royal Commission - The Commission has been established to inquire into and report on the affairs of Crown Casino Perth. The Commission will examine the regulatory framework and any matters that might enhance the Gaming and Wagering Commission's future capability and effectiveness. Credit: News Corp Australia, Tony McDonough

Crown Resorts’ executive team are bracing for further possible changes, as an incoming board member admits the scandal-plagued casino “lost its way”.

Incoming board member Anne Ward told the Crown Perth royal commission on Wednesday the company’s leadership has “almost completely changed” at the board and senior executive level.

However more changes could be on the way, according to Ms Ward, who has served as a non-executive director on 20 other boards.

Crown Resorts chairman-elect and former Telstra boss Ziggy Switkowski told the commission earlier this week he believed two more directors were needed on the six-person board.

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Crown Resorts’ managing director and chief executive Steve McCann also indicated there would be further changes to the board and senior executive team.

“I’m aware that the process of board renewal will continue,” Ms Ward told the commission.

“In discussions with Mr McCann, he has some other changes potentially under consideration in the executive team — whether that is structure or the individuals involved, I couldn’t say.

“But I think he anticipates the executive team will be stabilised within a number of months.”

ROYAL COMMISSION
Camera IconMore changes may be on the way for Crown. Tony McDonough Credit: News Corp Australia

The commission is examining Crown Perth’s operations and existing regulatory frameworks to establish if Crown Perth is fit to continue holding its casino gaming licence.

A separate Victorian royal commission into Crown’s flagship Melbourne casino on Tuesday deemed its conduct “illegal, dishonest, unethical and exploitative” but recommended against stripping its gaming licence for now.

The Melbourne and Perth royal commissions came after the Bergin inquiry in NSW found Crown’s Melbourne and Perth casinos had been infiltrated by underworld figures through Chinese high-roller junket tours and had facilitated money laundering.

Ms Ward, who is awaiting the regulator’s approval before her board appointment is confirmed, said Crown’s “remediation” plan to address its failings was “very extensive” and went to “almost every level of its operations”.

“It’s accepted more needs to be done,” she said.

“There have been clear deficiencies outlined in the financial crime programs.

“That’s urgent to remediate ... and progress has been made.”

Assignment Freelance Picture Incoming Crown board member Anne Ward fronts the Perth Crown royal
 commission. Source: Royal Commission livestream
Camera IconIncoming Crown board member Anne Ward is questioned at the Perth Crown royal commission. Source: Royal Commission livestream Credit: News Corp Australia

Mr Ward said she accepted the position as director to meet the challenge of helping restore Crown’s reputation.

“I view Crown as an iconic Australian company that has contributed significantly to the economies of Victoria and WA, but it’s a company I think that has lost its way and needed and needs an ongoing very significant transformation program,” she said.

“I would not have accepted the invitation to join the Crown Resorts board if I didn’t have confidence with the leadership that’s been put in place, capable of effecting that change and that Crown was capable of remediation.

“I’m attracted to the challenge of assisting that remediation and restoring Crown to the position that it should be in, restoring the trust and confidence of its regulators and communities in which it operates and restoring the pride of people who work for Crown.”

Non-executive director Nigel Morrison, who has extensive experience in managing casino operations and joined Crown Resorts earlier this year, also gave evidence at the royal commission on Wednesday.

“Some years ago, Crown was, I would say, best practice in responsible services gaming, but I think probably over time it has slipped from that mantle,” he said.

“There are some improvements that can be made as to how Crown manages its responsible service of gaming, which we’re focusing on as an organisation and keen to progress.”

Crown non-executive director Nigel Morrison gave evidence at the royal commission on Wednesday.
Camera IconCrown non-executive director Nigel Morrison gave evidence at the royal commission on Wednesday. Credit: Supplied

Mr Morrison agreed Crown needed to lift its responsible service of gaming program level to be like SkyCity Entertainment Group where he previously worked.

“I think there are certain elements where that should be the case,” he said.

Mr Morrison said he saw Burswood Limited as a subsidiary of Crown Resorts, describing it as an “enviable asset”.

“I would like to think in the near-term we will have a Perth-based non-executive director on the Crown Resorts board who also sits on the Burswood Limited board,” he said.

But he added that was his personal view.

Mr Morrison said it was critical for Crown to set its organisation structure and populate its board.

“The organisation needs to be settled down and senior management need to be appointed,” he said.

“There needs to be a chief executive of Sydney, there needs to be a chief operating officer of Crown Melbourne appointed.

“It’s very difficult to move organisations forward unless you’ve got your organisation structure set and you’ve got your key management in place.

“Obviously, for the first half of this year we struggled with that because we didn’t have a chief executive. Steve McCann was only recently licensed.”

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Camera IconMr Morrison said it was critical for Crown to set its organisation structure. Tony McDonough Credit: News Corp Australia

Mr Morrison said the next step was to reassess the vision and values of the organisation.

“The new values have been established and are being rolled out throughout the organisation,” he said.

“You can imagine for an organisation like Crown, with only three licensed board directors there’s an awful lot of work to do.”

He also said Crown needed to get its remuneration structure right.

Asked if he had any concerns about the scope or adequacy of the remediation plan, he said: “I don’t think so, other than it’s a living document and it will continue to be improved.”

Mr Morrison said he believed the culture at Crown was “very good” and satisfactory for its operations, but could be improved.

Asked to clarify an additional comment that seemed to suggest things had turned around in the past six months since a survey was conducted, Mr Morrison said: “Absolutely, I think big steps can be made and six months is a long period of time.”

Mr Morrison further added: “A lot has happened in six months ... I’d be surprised if we haven’t made good progress. I think the communication the organisation is doing now to its management and its staff is far superior than a year ago.”

Originally published as More changes at Crown Resorts flagged for scandal-plagued casino

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