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Summary
- Billionaire James Packer admitted the mail trail and the threats he gave to an executive.
- Packer said that he is unwell and undergoing treatment for his mental health.
- The enquiry will continue today as Crown is accused of dealing with organised crime groups and money laundering.
A prominent Australian businessman James Packer has accepted charges against him during the NSW enquiry on 6 October. Packer, one of Australia's richest men, admitted that he made threats to an executive in 2015. He said that his behaviour was shameful and disgraceful.
Billionaire casino owner also acknowledged during the enquiry that his act had belittled the reputation of Crown Resorts, Australia's largest gaming and entertainment group.
James Packer is the largest shareholder with 36% in the Crown Resorts Limited (ASX:CWN), disappeared more than two years ago, stating that he needs to look after his mental health. During NSW enquiry Packer said that he was dealing with serious mental illness during that time, and currently he is undergoing treatment for his bipolar disorder.
The NSW enquiry has the same powers as a royal commission and was set up after various media houses allegedly exposed Crown's business dealings with high-roller "junket" groups and organised crime groups in Asia.
The reports revealed that these businesses with Chinese groups led the Crown to launder drug money allegedly. Nineteen of Crown's staff members were arrested in China in 2016 for promoting gambling illegally. Since the expose in the media, Crown was facing allegations of being associated with organised crime and drug money laundering at its Perth and Melbourne casino venues.
Also read: Slump In Crown’s Shares Chopped Off Investor James Packer’s Wealth
What happened in the NSW enquiry?
The NSW Independent Liquor and Gaming Authority currently inquiring if the Crown Resorts is suitable to operate and hold a licence in NSW. The details of the threats came forward through an email exchange conducted from December 2015. The Authority initially withheld the information from the public domain.
Billionaire James Packer made his much-awaited appearance - digitally, from his supposedly US$200 million ultra-luxury superyachts IJE. The superyacht was anchored somewhere in the South Pacific sea. Packer faced a series of questions related to the emails, which he answered slowly and quietly.
In the video, Packer also appeared overweight and acknowledged that his appearance is such due to the strong medications he is currently taking. The medicines also made it difficult for him to recall some past events. While he agreed to his behaviour and emails, he was asked in the enquiry if he is under any obligation not to smear Crown, to which Packer replied that he clearly forgot about it.
Was Packer trying to privatise Crown?
Packer attempted to buy the remaining 47% shares, which he did not own in 2015. He also initiated talks with a private enquiry to contribute funds for the buyout to which the firm reverted that they will not be able to provide the funds' Packer was asking. After the email exchanges were revealed in 2015, Packer resigned from his position in Crown.
Good Read: Mass Closures Impacted FY20 Performance of ASX200 Stock Crown Resorts
Crown's future at stake?
James Packer, 53, founded the Crown Resorts in 2007. Crown Resorts Limited has a market capitalisation of A$5.99 Billion as on 8 October 2020 and closed the days’ trading at A$8.8. After resigning from the position in the Crown board of Crown Resorts, Packer disappeared from public scrutiny and started to live abroad. He did not attend annual general meetings in 2018 and 2019 as well.
As the Packer comes out of Australia's most affluent son image who is battling the inner demons, he faces severe allegations of drug money laundering and dealings with organised crime groups. NSW is now investigating the licence and operational aspects and other states where the Crown operates have their eyes on the case.
During the enquiry Packer confessed his behaviour, primarily blaming his mental condition.
Despite Packer accepting the allegations, the commissioner of the inquiry Patricia Bergin SC needs to be convinced that the Crown and its management will effectively handle these internal issues in the future.
Packer also faced questions related to the Crown's Nineteen staff members getting arrested in China in 2016. They were in custody over a year and held during a crackdown on foreign casinos in China which were providing safe haven to Chinese high rollers. Crown also allegedly operated unofficially from the office in Guangzhou, China.
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