Jakarta – Corrupt Indonesian businessmen used Australia's high-rolling Christmas Island casino to launder money when it was owned by a crony of Indonesia's former dictator Suharto, a former shareholder believes.
The ABC's Four Corners program was told billions of dollars flowed through the gambling house, providing a tax bonanza to the Australian Government until it was shut in 1998 as a result of the Indonesian economic crisis.
Gamblers from Jakarta would pour on to the Australian island territory, only one hour's flight away away by private jet, betting up to $1 million a card.
In an interview with Four Corners, the casino's Australian developer and 10 per cent shareholder, Frank Woodmore, said, "I used to ask my colleagues Indonesians where the money came from, and the answer was really that it was just the way that these people operated in Indonesia.
"They had a very substantial black economy ... it was probably very largely from corrupt practices on their part. It was quite noticeable that we often recycled the same old players; the same people were coming in time and time again. Now that did give some suggestions that maybe there's money laundering going on."
The ABC program, screened tonight, quotes former casino staff as saying that high-rollers would arrive on the island with bag loads of money, very likely the proceeds of illegal activities such as drugs, prostitution and arms trading.
The casino's entertainment manager, Tony Mockeridge, said, "If you scratched the surface you'd find very, very quickly that they were involved in drugs, prostitution, arms dealing ... that sort of thing."
The report comes as investors plan to reopen the casino, raising the question as to how today's regulators would deal with a new operation on Christmas Island.
The casino would be established only if Asia Pacific Space Centre decides to establish a Russian satellite launching operation on the island.
Four Corners said that over the five years the casino operated, 90-per cent owner Robby Sumampow flouted Australian law aimed at stopping casino owners from profiteering.
At a time when the Australian Government was keen to forge closer links with Indonesia, Mr Sumampow had the blessing of Indonesia's then all-powerful president Suharto through Suharto's favoured younger son Hutomo "Tommy" Mandala Putra.
Suharto's 32-year regime ended in May 1998 and Tommy is now in jail in Jakarta on charges that he ordered the assassination of a Supreme Court judge who sentenced him to jail.
The report said Mr Woodmore believed that Tommy had a 20 per cent stake in the business. During the casino's heyday, he was a frequent visitor, placing up to $250,000 on one card.
Mr Sumampow had close links with the Indonesian military's operations in East Timor during its 1975 to 1999 occupation, holding valuable coffee and sandalwood monopolies there.
General Benny Murdani, who oversaw Indonesia's annexation of East Timor, was believed to have a 5 per cent stake in the casino, the report said.