Former Star executives have detailed a dysfunctional leadership that left them disillusioned as a culture of fear developed among staff after a review stripped the casino of its gaming licence.
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Star Entertainment Group was found unfit to run a casino after an inquiry, led by Adam Bell SC, heard revelations of illegal gang-linked junkets operating in gaming rooms and Chinese debit-card transactions being disguised as hotel expenses.
It was hit with a $100 million fine and had its licence suspended following the October 2022 inquiry report.
Mr Bell is leading a second review into The Star's suitability for a casino licence after concerns were raised that reforms might have been prompted by oversight from a government appointed-interim manager rather than driven by the firm.
Star executive chairman David Foster took a temporary leave of absence from the Bendigo and Adelaide Bank board on Wednesday, two days after testimony at the inquiry revealed he and then-CEO Robbie Cooke plotted to get rid of that special manager, Nick Weeks.
Former chief customer and product officer George Hughes described the shift in culture at The Star from one of "profit over compliance" to "fear" after the first Bell review.
"There was a desire and focus from a lot of our team members to ensure that the business became suitable and there was a fear about that not happening," he said.
Counsel assisting the inquiry Caspar Condie asked if that was the case with Star's leadership.
"It was pervasive," Mr Hughes replied.
Despite the shifting culture, the former executive said an expansion of his role to include riskier responsibilities, a lack of progress on important matters and an unsafe and challenging workplace led to his decision to resign.
His wider role included looking after the team that managed relationships with VIP guests, which caused him anxiety and concern over a lack of adherence to approved practices.
"There were historic practices of sending out group text messages with the inclusion of other people's mobile numbers so multiple guests can see other people's mobile numbers," he said.
The board rejected his request for indemnity relating to his broadened responsibilities.
Mr Hughes was also concerned about the immense pressure and expectations placed on people, leading him to deem it an unsafe and challenging workplace.
While people were working hard to regain trust and secure the business, the leadership wasn't functioning as optimally as it could have been.
"I don't think (Mr Cooke) was leading the team as well as he should have been," Mr Hughes said.
Two weeks after starting as Star's chief legal officer in May 2023, Betty Ivanoff was considering her resignation.
Her tenure lasted four months and was plagued by what she described as being "undermined and excluded" by Mr Cooke, whom she claimed failed to provide her with transparency and visibility of the company.
"I did feel that I would be brought in and out of topics at whim by the CEO, which I found quite awkward," Ms Ivanoff told the inquiry on Wednesday.
She spoke of how Mr Cooke would negotiate legal agreements with external law firms before bringing her in part way through and then leaving her out of the loop.
"I was perplexed why, with a chief legal officer, one would go directly to the external law firm as opposed to coming to me first," Ms Ivanoff said.
On Tuesday, former chief financial officer Christina Katsibouba told the inquiry she was forced to carry the weight of the Star's dire financial situation on her shoulders after Mr Cooke urged her not to tell the rest of the leadership team.
The inquiry was delayed on Wednesday and Star threatened with fresh charges after the casino's solicitors submitted "quite a large number of documents" two weeks late.
Australian Associated Press
