STAR CITY DROPS STAFF CHECKS

AUTOMATIC financial and probity checks on staff and contractors with
Star City casino have been dropped due to State Budget cuts, a Daily
Telegraph investigation has revealed.And on some shifts, the reduced
staffing resources of the Casino Surveillance Division - the State
Government's casino watchdog - have led to one inspector monitoring
1000 video security cameras.

Casino Surveillance Division director Ron Harrex, who is due to face a
parliamentary committee today to answer questions on casino security,
confirmed the reduced staffing.

The division's slashed budget comes at a time of growing reports of
unlawful activity at the casino, especially among high rollers.

Only last week this newspaper witnessed loan sharking in the elite
Endeavour Room, the domain of the high rollers.

A player was being charged an interest rate of 10 per cent a week for
instant credit.

Stories of players being plied with alcohol and casino staff
organising prostitutes also surfaced. And as recently as last week a
pit boss manager -- who oversees staff in the gambling areas -- was
arrested at the casino and later charged with drug dealing.

The police have banned 50 people since 1995, while another 1700 have
been expelled by the casino. On Thursday night the casino banned
another nine, on top of five excluded by the Police Commissioner last
week.

Sources said the latest exclusions were due to prostitution and money
lending, but this is unconfirmed.

A confidential document outlining the surveillance cuts reveal eight
areas of reduced activity. These include abolition of full financial
record checks of staff seeking licences to be employed at Star City.

These have been replaced by random checks, tax office style.

Other measures include:

AN end to probity checks on outside contractors;

WITHDRAWAL of any permanent presence by the watchdog in revenue
counting;

WITHDRAWAL of security staff from being present during visits to the
storeroom where playing cards and dice are kept;

REDUCTION of special audits of casino finances from two a month to
just three or four a year.

An inquiry led by Peter McClelland, QC, has promised to examine
allegations of "money laundering, criminal presence, and criminal
activities".

A program to cut $8.75 million over five years from the casino
watchdog was begun last year. Staff numbers have already fallen from
57 to 29.

Worse hit is licensing, which oversees probity and financial checks,
down from 10 to two.

Mr Harrex said the division's old role of overseeing almost every
operation has been replaced by a "risk management" policy.

"We have moved and are still moving towards more emphasis on
risk-based management," he said.

He said the cuts meant there was less "hand holding" by his inspectors
with casino's own security staff.

Mr Harrex confirmed the reduced staff numbers had led to some shifts
where one person was monitoring 1000 cameras.

This work, monitoring everything from card counting to pickpocketing,
has in the past been done by up to four inspectors, but now should be
done by two. Mr Harrex said all complaints about unlawful behaviour
are investigated, despite the cuts.

The Daily Telegraph's investigation has also revealed that staff
claims of harassment by patrons has led to demands for a new clause in
their forthcoming enterprise agreement.

The Liquor, Hospitality and Miscellaneous Workers Union has demanded
the clause requiring management to expel patrons who touch staff.

This newspaper was also contacted by high roller, Paul Desmond, who
was named in State Parliament last month as having vanished to escape

loan sharks.

Mr Desmond denied he was on the run but wanted to know details of what
was said in Parliament and conceded he knew of loan sharking at the
casino.

Opposition spokesman Rob Oakeshott said yesterday there was no
acknowledgement of the serious issues facing the casino from the
Government.