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This was published 5 years ago

As it happened: James Packer threatened high-profile businessman over privatisation deal in email

Patrick Hatch and Sarah Danckert
Updated ,first published

Summary

  • Inquiry is investigating probity issues at casino giant Crown Resorts 
  • Commissioner Patricia Bergin will report on whether Crown is fit to keep the licence for its new casino at Sydney’s Barangaroo 
  • James Packer, who owns 36 per cent of Crown, was called to give evidence about his involvement in the business. 
  • Issues raised at the inquiry include Crown going into business with figures linked organised crime, money laundering at its Melbourne and Perth casinos, and the arrest of 19 staff in China in 2016

That's a wrap

By Sarah Danckert

Well, that's a wrap for today's Crown Inquiry blog.

If you're keen on seeing all the details from today's proceedings there's lots of posts and articles below to ensure you are up to date.

And we'll see you in the morning for James Packer's second day in the witness box.

Sure bet of more bombshells at tomorrow's hearing

By Sarah Danckert

What did today's hearing mean for James Packer?

Here's an analysis piece by business reporter Sarah Danckert on today's hearing:

James Packer made history yesterday at the NSW inquiry into the activities of casino giant Crown Resorts, but for all the wrong reasons.

While he’ll be back on Wednesday to give more evidence, it was Tuesday where he made admissions about his conduct that could haunt him for a long time and put Crown’s NSW licence at risk.

Read more from Sarah, here.

Packer puts on best poker face

By Andrew Hornery

And here's a take on today's hearing from The Sydney Morning Herald's Private Sydney columnist, the inimitable Andrew Hornery:

A slightly sweaty upper lip was the only clue as to the possible emotions swirling through casino mogul James Packer's mind as he was grilled during Tuesday's NSW casino inquiry which veered into some of the most sensitive areas of his private and public lives.

Mr Packer, 53, told the inquiry he had been diagnosed and was being treated for "bipolar disorder", using the past tense in an attempt to explain his previous "shameful" conduct, offering: "I was sick at the time."

Read more from Andrew here.

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'Mr X might be put in fear by those threats'

By Patrick Hatch

Here's the full exchange from what was an unexpected and astounding revelation from today's hearing, about how Packer sent threatening emails into a businessman known only as "Mr X" in 2015 in relation to attempts to privatise the casino group. The inquiry did not make the content of the emails public. But here's what followed:

Counsel assisting Adam Bell: You accept you were making threats against Mr X in these emails?

James Packer: Yes.

Bell: And you understood Mr X might be put in fear by those threats?

Packer: No, that came as a surprise to me.

Bombshell evidence at Crown inquiry

By

Here's a piece by our gun reporters Nick McKenzie and Patrick Hatch wrapping up proceedings:

Billionaire James Packer threatened an unnamed businessman in a series of emails in 2015 that also referred to Israeli intelligence agency Mossad, he has admitted to the inquiry into Crown's NSW licence.

Mr Packer told the inquiry it "came as a surprise" to him that the businessman, whose name has been suppressed, might have been put in fear by the threat. But under questioning he agreed the emails were “shameful” and “disgraceful”.

He said he had been mentally ill at the time with bipolar disorder.

Read more here.

Packer concedes 'serious failures' in China

By Sarah Danckert

And that's a wrap for today.

But before they let Mr Packer go he was asked about Crown's unofficial office in Guangzhou in China. The inquiry heard the office was in a semi-residential building and often attracted the attention of authorities.

Counsel assisting the inquiry Adam Bell told Mr Packer that former Crown chief executive Rowan Craigie had told the inquiry it was an attempt to disguise Crown was operating in China.

Mr Bell asks Mr Packer if he was aware of Mr Craigie's claim.

Mr Packer: "I'm aware Mr Craigie gave that evidence, yes."

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Let's take stock of those bombshell Packer emails

By Patrick Hatch

The inquiry has now moved onto Crown’s strategy in China, but let's just reflect on the bombshell we just learnt.

In 2015 Packer was exploring a privatisation of Crown and was talking to a potential buyer, a private equity firm the inquiry referred to only as “Z Co”, and its representatives “Mr X” and “Mr Y”.

We heard that Packer sent an emailed threat to Mr X around this time. The content of the email was suppressed by the inquiry.

But under questioning Packer agreed the emailed threat was “shameful” and “disgraceful”.

Counsel assisting Adam Bell asked Packer: “How can the NSW [gambling] regulator have any confidence in your character and integrity in light of these emails?”

Packer's integrity questioned

By

It appears the inquiry is looking at this threat Mr Packer made to this Mr X as the part of a consideration of whether Packer should be allowed to be a "close associate" of Crown.

If the inquiry says he can't be, then he may be forced to sell down his shareholding for its current 36 per cent to less than 10 per cent.

Here's more of counsel assisting Andrew Bell, SC, questioning of Mr Packer:

Mr Bell: How can the nsw regulator have any confidence in your character and integrity in light of these emails?

Mr Packer: Because I was sick at the time.

Packer accused of making threats

By Patrick Hatch

We know now why these emails were so sensitive: it appears Mr Packer sent a threat to the mysterious Mr X.

Here's the transcript:

Adam Bell, counsel assisting: You accept you were making threat against Mr X in these emails?

James Packer: Yes.

Mr Bell: And you understood Mr X might be put in fear by those threats?

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Hearing to resume shortly

By Sarah Danckert

The live feed of the inquiry's hearing briefly was back live for public viewing, but only for a minute.

The legal teams are now taking a five to ten minute break and then we'll be back on and hopefully find out about Mr Packer's emails and dealings with privatisation offers and Israeli billionaire Arnon Milchan

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