Australian casino giant Star Entertainment Group has appointed a new chairman after months of regulatory and financial hurdles following two state casino inquiries into its operations. The company received all necessary regulatory approvals to appoint board member David Foster to succeed Ben Heap as chairman from the end of this month.
Heap said Foster’s appointment marked “a new chapter” for the embattled group, which faced public inquiries and overhauled its board after allegations of extensive anti-money laundering and counter-terrorism failings following an investigation by The Sydney Morning Herald, The Age and 60 Minutes in 2021.
“I would like to express my appreciation to the board and management for their continued support during my tenure as chairman. I have every confidence The Star will be a powerhouse of the Australian tourism and entertainment sectors for decades to come,” Heap said, as reported by The Sydney Morning Herald.
Foster is the former chief executive of Suncorp Bank and chairs ASX-listed G8 Education. He also sits on several boards, including Bendigo and Adelaide Bank. He joined The Star as an observer board member in August, pending regulatory approval.
Heap’s intention to resign from The Star was announced in December when he was named as one of the 11 current and former executives and directors to be prosecuted by Australia’s financial watchdog over alleged breaches of the Corporation Act. ASIC claims they failed to oversee anti-money laundering protocols properly at the company’s casinos for years.
Former chairman John O’Neill, former CEO Matt Bekier and directors during that time period – Katie Lahey, Richard Sheppard, Gerard Bradley, Sally Pitkin, Zlatko Todorcevski as well as current chairman Heap – are all identified in ASIC’s 164-page statement of claim.
Matt Bekkier
“I intend to contest the ASIC allegations, but to remain on the board beyond the transitional period would be a distraction to the company when remediation needs to be our unwavering focus,” Heap said in a statement to the ASX at the time.
Heap is the only director or executive subject to the proceedings who remains at the company and will depart at the end of the month. Foster thanked Heap for his service to the group over a “challenging period,” the aforementioned source reported.
“He provided leadership and stability at a critical time which included overseeing the appointment of our new chief executive, renewal of the board and a reset of the balance sheet,” Foster said.
“These were important and fundamental steps that have now been completed as the company rebuilds towards an exciting new era. I’m delighted to assume the role of chairman as we continue with an unwavering focus on earning back the trust of the community,” he concluded.
Robbie Cooke.
Newly minted chief executive Robbie Cooke joined The Star on October 17, the day the NSW casino regulator suspended the group’s flagship Pyrmont casino license and has pledged to remediate the group and restore public trust.
The Star has also appointed four new non-executive directors to the board, including Michael Issenberg, Deborah Page and Anne Ward, and is awaiting the approval of Toni Thornton.
Original article: https://www.yogonet.com/international/news/2023/03/22/66565-star-entertainment-appoints-david-foster-as-new-chairman-in-the-aftermath-of-its-regulatory-turmoil
