Former Star Entertainment chief executive Matt Bekier has rejected claims he may have breached his duties by relying on other executives to alert him to any probity issues ahead of the board approving the company’s financial exposure to Chinese junket operators.
On his second day before the federal court, Bekier was asked about the board’s approval of an increase in a cheque-cashing facility (CCF) in November 2017 – for Qin Sixin on behalf of the Minmin Shen junket – ostensibly without probity issues being addressed at all.
Bekier’s testimony on Thursday came amid reports that Star, which has been teetering on the brink of going into administration, may have secured a lifeline.
Former Star chief Matt Bekier walks out of the Federal Court with his legal team on Wednesday.Credit: Louie Douvis
Reports surfaced Thursday afternoon that Star’s board were close to clinching a deal with the partners in its new Brisbane casino – Chow Tai Fook Enterprises and Far East Consortium – that would give it the short-term funding needed to avoid administration this week.
The consortium partners have reportedly agreed to buy the casino for $50 million. Star did not respond to requests for comment.
Star’s financial woes were triggered by a series of investigations in The Age and The Sydney Morning Herald that revealed potential breaches of anti-money-laundering laws. The company subsequently lost its licence to run casinos in NSW and Queensland.
On Thursday the federal court heard how detailed information was offered to help Star’s board assure themselves of the junket operator’s credit worthiness, but no such information was provided on any probity issues that had the potential to threaten its licence.
“The credit risk data included in the board’s paper allowed the board properly to form its own view about the acceptability of the credit risk?” asked Dr Ruth Higgins, SC, who is acting for ASIC.
“Yes,” Bekier replied. He agreed that the board was not provided with information to form its own view about probity, but said board members had other ways of forming a view on probity.
