Bell has been engaged by the NSW regulator, the NSW Independent Casino Commission, to ascertain whether The Star has adequately reformed its culture, is financially viable, and is compliant with the state’s casino regulations.
A series of former and current executives at the embattled company, remediation experts and its special manager, Nicholas Weeks, were summoned to give evidence over the past month.
The decision may also affect The Star’s viability to operate in Queensland after the state Attorney-General Yvette D’Ath said earlier this week it would postpone its own suitability decision until after Bell’s final report at the end of July.
A series of embarrassing revelations were exposed, including secret plots against the regulator by now-ousted chair David Foster and ex-chief Robbie Cooke, extensive falsification of welfare checks on gambling patrons, and insufficient source-of-wealth checks on high-risk customers. An allegation was also aired by former chief financial officer Christina Katsibouba, who said she was asked to alter the company’s financials to hide a $3.2 million error.
The second inquiry has claimed the scalps of a suite of executives including its former chair, David Foster, who was revealed to have conspired to get rid of the special manager and accused of concocting a class action against Weeks and the regulator.
The Star’s share price has been battered recently, but briefly soared earlier this week following a report from the Australian Financial Review that US hospitality giant Hard Rock International was considering a takeover. This was denied by Hard Rock on Tuesday, and a Queensland property developer, Patrick Farrugia – who used to have links to Hard Rock’s now-defunct premises in Surfers Paradise – was outed as the source of the proposal.
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Source Agencies
