Independent investigation findings into allegations broadcast on Four Corners

The Victorian Gambling and Casino Control Commission  (VGCCC) has publicly released the full report (PDF, 890.5 KB)of the independent investigation it commissioned into allegations made by former inspectors on the ABC Four Corners program, “Watchdog or Lapdog?”, on 5 July 2021.

Eminent QC, Dr Ian Freckelton AO led the independent investigation that included 30 interviews with 10 current and former VGCCC inspectors (including the five inspectors referenced in the Four Corners program), 10 current and former VGCCC senior executives and representatives from Crown Melbourne and AUSTRAC. Dr Freckelton also had unlimited access to all records and documents which were called for, inspected and evaluated.

VGCCC Chair, Ross Kennedy committed to the public release of the full report when it was announced on 8 July 2021.

“The findings of the independent investigation deserve equal prominence with which the original allegations were broadcast.”

“While it is pleasing that the investigation has confirmed the VGCCC’s integrity, there are references to historical shortcomings which have been addressed, and recommendations for further improvement which are welcomed, consistent with our reform program underway, and will be fully implemented.”

“I take comfort that Dr Freckelton found no evidence of wrongdoing, corruption or unlawfulness of VGCCC employees or officers and current management are dedicated, professional and reflective.”

“All the findings including those relating to arguably the most serious and most high-profile allegation relating to “the Blue Cooler Bag” cash footage, deserve to be noted,” he said.

“With regard to the Blue Bag footage, the independent investigation report notes on page 117, paragraph 7:

“In our view, it is evident that the allegation made on the Four Corners episode that the ‘Blue Bag Incident’ was ‘not acted upon by the VCGLR’ is inaccurate and not in accordance with the available evidence. In fact, a high level of work went into the observation, monitoring and gaining of intelligence about Mr Pan at Crown Casino following the 10 May 2017 incident by the relevant inspector who has extensive experience in gambling regulation. The inspector appropriately reported his findings to his immediate manager (the team leader) and the Casino managers of the time and disseminated the information to the intelligence unit.”   

and further on Pages 113-114, Paragraph 3, that:

“… none of the five inspectors who were interviewed on the Four Corners episode had any direct involvement in relation to the ‘Blue Bag Incident’. As will be explored in detail below, it was another inspector at the VGCCC who observed the incident while undertaking surveillance activities during his shift. This inspector continued to have carriage of the investigation arising from his observations, including by drafting the relevant information reports, conducting ongoing surveillance of Mr Pan at the Casino from June 2017 to May 2018, and having interactions with Victoria Police about the incident. Based on these facts, other than a general awareness of the ‘Blue Bag Incident’, this matter does not appear to us to be in the direct knowledge of the five former VGCCC inspectors interviewed on the Four Corners program. We consider the inspector who had carriage of the Blue Bag investigation should be commended for his work.””

According to the Freckelton investigation report, of the 12 allegations, for nine allegations there is either:

• “no credible evidence” (allegations 1, 2, 3 and 9)
• “not supported by evidence” (allegation 4)
• “there is no basis for legitimate criticism” (allegation 5)
• “not indicative of regulatory default or oversight” (allegation 10);
• “inaccurate and not in accordance with the available evidence” (allegation 11)
• “there is no evidence” (allegation 12).

Of the remaining three allegations:

• rather than “many” shifts where Crown Casino had no inspector from VGCCC, the report found it was “occasional” and happened where “rostering problems arising from illness or recreational leave do not give any other option.” (allegation 6);
• it was substantiated that junket audits were reduced/ceased around 2013-14 (allegation 7)
• historical Internal Control Statements were found to inhibit the potential for audit checklist tools used by VGCCC inspectors to accomplish regulatory objectives effectively, however the current Internal Control Statement (junket and premium players) constitutes an important improvement. (allegation 8).

The executive summary of the Freckelton investigation concludes on page 12, paragraphs 42 and 43:

“we emphasise that none of the shortfalls involved wrongdoing, including corruption, unlawfulness, a failure by the VGCCC to comply with applicable laws/regulations and/or were motivated by improper purposes (i.e. purposes extraneous to the VGCCC’s regulatory objectives) on the part of officers or employees of the VGCCC.

To the contrary, it is clear to us that those with current managerial responsibility within the VGCCC are dedicated, professional and reflective, even in circumstances which have been stressful and subject to intense media scrutiny. They and the significant number of on-the-ground staff to whom we spoke at length impressed as committed to ensuring the objects and purposes of the Casino Control Act 1991 are met.”

The allegations and relevant findings and commentary are detailed in the Appendix to this Media Release.

Appendix: 

The Freckelton Report, “Investigation by External Counsel into issues raised in the Four Corners programme, Watchdog or Lapdog”, contains 17 findings relating to 12 specific allegations as detailed in the Terms of Reference.

While the Report should be read in full, for ease of reference, relevant sections have been grouped under each of the 12 allegations, with bolding added by VGCCC. View the appendix. (PDF, 97.34 KB)