Chief casino officer Michael Connolly went on fishing trips in a boat called ‘The Good Ship Compliance’ with Crown executives

Western Australia’s chief casino officer took Crown Perth executives on regular fishing trips on a boat he called “The Good Ship Compliance”, the Perth Casino Royal Commission has been told.

The royal commission heard in May about how Michael Connolly frequently went fishing with executives of the company he was supposed to be overseeing.

But the hearing on Thursday was presented with evidence of the extent of the personal relationship between the men.

The commission was told of a March 2014 email in which Mr Connolly called Crown Perth’s general manager of legal and compliance, Claude Marais, “Gilligan” and Mr Marais called him “Skipper”.

This email chain also included Crown Perth’s legal boss, Joshua Preston, and manager of gaming and regulatory compliance, Paul Hulme.

“It was a joke between you and Mr Connolly that you had each adopted the persona of one of the characters from the old TV series Gilligan’s Island,” counsel assisting the royal commission, Patricia Cahill, said.

Ms Cahill also gave examples of email “banter” between the men, who she said accused each other of being “unmanly” and “henpecked by their wives”.

Ms Cahill said that in one March 2014 email Mr Connolly, with his deputy director-general signature at the end, said he had “requested and received permission for a sleepover in Jurien Bay”.

“What is the story with the rest of you? I can send a note home in your school bag if you like,” he wrote.

Mr Connolly stood aside from his chief casino officer duties earlier this year after his friendships with the men became public but he is still a deputy director-general of the Department of Local Government, Sport and Cultural Industries (DLGSC).

Trips to Rottnest, Mackerel islands 

Mr Marais gave evidence on Thursday that there were seven weekend fishing trips with Mr Connolly — which frequently also included Mr Hulme and Jon Nichols, who has worked for both Crown companies and the WA government — between 2013 and 2019.

He said the trips, additional to regular crayfishing outings in the Perth metropolitan area, were usually two to three nights’ long.

“I believe three were to Jurien Bay, one to Mandurah, there was a separate trip which was just Mr Connolly and didn’t include Mr Hulme and Mr Nichols which was to Mackerel Islands,” he said.

“There was also … possibly two trips to Rottnest Island.”

Ms Cahill said Mr Connolly first initiated the fishing trips in September 2012 and was already personal friends with Mr Preston and Mr Hulme.

“Did you have any concerns about Mr Connolly referring in the email to his boat that he was to take you out on as ‘The Good Ship Compliance’?” Ms Cahill asked Mr Marais.

“I’m not sure. I can’t recall and I’m not sure it crossed my mind at the time,” Mr Marais replied.

As well as these recreational pursuits, the men met for monthly operations meetings between the WA government and the casino.

But Mr Marais said they never talked about work on these trips.

“Well, I just don’t think that it is acceptable because you are mixing the pleasure with the work,” he said.

“And when you are discussing work you need to be in an office, you need to be meeting a person with a suit on.”

Proposal to allow faster gaming machines discussed

These operational meetings were held ahead of meetings of the casino watchdog, the Gaming and Wagering Commission (GWC) , which Mr Connolly advised.

Mr Connolly has previously told the royal commission that he never formally declared the fishing trips or friendships to the GWC but he informed his boss, former GWC chair Barry Sargeant.

Ms Cahill: “You understood that [Mr Connolly] had a central role in recommending to the GWC whether permissions and approvals should be given to [Crown Perth] in respect of its operations?”

Mr Marais: “Yes.”

One particular recommendation which came under scrutiny was a proposed amendment by Crown Perth in 2019 to the national gaming machine standards to change the speed of electronic gaming machines (EGMs) which would earn the company more revenue.

This proposal was approved by the GWC in November that year.

The royal commission heard that Mr Connolly discussed the proposal many times with Mr Marais and Mr Hulme before he recommended it to the GWC.

But Mr Marais said that he did not think Mr Connolly would favour the proposal because of their friendship.

“Mr Connolly is just straight down the line professional, he wouldn’t care less what anyone thought of him or otherwise,” he said.

Mr Marais also said he was not aware of the Riverbank accounts until Mr Preston’s evidence to the Bergin inquiry in September last year but he immediately commissioned a review of the bank accounts allegedly used for money laundering.

The royal commission heard that Mr Marais later learned that month of 102 suspicious transactions which could indicate money laundering.

But Crown Perth did not tell the GWC about this, as well as other investigations, when it attended its October meeting, waiting until the watchdog’s December meeting.

Mr Marais said that it should have disclosed this in October but was waiting for the other reviews to be completed.