Former CEO Funke Kupper under fire
Allegations of bribery by Australian betting company Tabcorp could cost the firm up to AU$120 million (US$90.4 million) in costs and penalties, according to the Sydney Morning Herald.
“In Australia, the maximum penalty would be A$17 million whilst in the US most cases end via a plea bargain and settle out of court, but the legislation and sentencing guidelines also take into account the benefits obtained,” said the brokerage firm.
The trouble doesn’t end there. Analysts say state governments will keep their eyes on the case, and may suspend or terminate Tabcorp licenses if criminal charges are forthcoming. In addition, the privatization of the West Australian TAB could be delayed by the investigation.
“In our view, it may be difficult for the WA Government to issue Tabcorp a license, even though the possibility that Tabcorp could fail the ‘suitable person’ test in Victoria is very remote in our assessment,” CLSA wrote. “It is remote but no less present, and this matter could drag out for perhaps two years. We thus believe that the WA government may consider delaying the tender of this license.”
Last month Elmer Funke Kupper, former Tabcorp CEO, resigned his post as head of the Australian Securities Exchange amid the allegations that the company bribed a relative of Cambodian Prime Minister Hun Sen when it was pursuing a betting license in the country.
Funke Kupper was in charge of Tabcorp Holdings Ltd. from 2007 to 2011. In 2009, the company allegedly paid $200,000 to a consulting company associated with Hun Sen’s sister.
Credit Suisse says the investigation and any further legal action could take months or even years.
