Whistleblower allegations that boardroom leaders behind Sydney’s Star casino adopted a “fight-back stance” to regulators are being investigated as it faces a make-or-break inquiry into its operating licence.
The Star Entertainment Group is facing a second probe, led by Adam Bell SC, into its suitability to run the key facility after concerns were raised the company was not proactively implementing reforms.
The initial investigation, also led by Mr Bell, found Star unfit to hold a casino licence following revelations of a notorious gang-linked junket operator running an illicit cage within a premium gaming room and Chinese debit-card transactions being disguised as hotel expenses.
Casino operations were handed to regulator-appointed manager Nicholas Weeks to ensure it could continue trading when its licence was suspended in 2022 after the first inquiry.
Anonymous and unsubstantiated allegations were put to Mr Weeks, who is fronting the inquiry for the second day on Tuesday.
Counsel assisting the inquiry Caspar Condie detailed a whistleblower complaint made on February 28 that the entire board seemed “largely unconcerned” about the second Bell review and took a “fightback stance”.
Secret emails disclosed on Monday indicated Star’s former chief executive Robbie Cooke and chair David Foster had plotted “going to war” with the regulator.
Mr Weeks said he saw some “parallels” between the whistleblower allegations and the email revelations.
The anonymous complaint also claimed it was widely agreed the culture within the organisation was toxic.
But Mr Weeks disagreed there were widespread issues across the company.
“I am aware of areas that need reform and aren’t operating at a level that the company or regulators would want, but I wouldn’t use the language toxic in terms of the broader organisation’s culture,” he said.
The whistleblower complaint has been referred to an external law firm and the investigation remains ongoing.
The matters have yet to be put to Mr Cooke, who remains a consultant for Star.
Mr Weeks conceded that morale among the company’s workers was poor and a significant program of work needed to be done as Star emerged from the inquiry and dealt with other matters.
Star’s former chief financial officer Christina Katsibouba is expected to front the inquiry on Tuesday alongside former chief customer and product officer George Hughes.
Ms Katsibouba worked at the company for nine years and stepped into the executive role following the first Bell inquiry in 2022.
Mr Weeks told the inquiry Ms Katsibouba confided that her working relationship with Mr Cooke and the board had deteriorated before she left the firm.
“Christina considered the group leadership team, which is the most senior management team, to be dysfunctional and to have been dysfunctional for some period of time and that she had lost faith and confidence in the integrity of the CEO,” he said.
Prioritising her wellbeing, Ms Katsibouba stepped down on March 22, he said.
Star’s share price took a further beating on Tuesday, falling nearly 12 per cent by early afternoon after a plunge on Monday.