ASX boss Elmer Funke Kupper 'not going anywhere' in face of bribery probe

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ASX boss Elmer Funke Kupper 'not going anywhere' in face of bribery probe

By Jared Lynch
Updated

ASX boss Elmer Funke Kupper​ is set to retain his role overseeing the nation's stock exchange, as well as his seat on gaming company Tabcorp's board, amid a federal police investigation into allegations of foreign bribery.

Mr Funke Kupper told Fairfax Media on Wednesday he intended to continue serving as a director of Tabcorp.

Elmer Funke Kupper is set to remain the boss of Australia's stock exchange and his Tabcorp directorship while the AFP completes its foreign bribery investigation.

Elmer Funke Kupper is set to remain the boss of Australia's stock exchange and his Tabcorp directorship while the AFP completes its foreign bribery investigation.Credit: Paul Jeffers

He was Tabcorp's chief executive in 2009 when a $200,000 payment was allegedly made to the family of Cambodian Prime Minister Hun Sen when the company was exploring obtaining an online gaming licence in the country.

Mr Funke Kupper, who told Fairfax Media at the weekend he could not recall the payment, said on Wednesday it would be inappropriate for him to comment further while the AFP was making its inquiries, but he would co-operate fully.

When asked if he was comfortable to continue to serve as a Tabcorp director during the investigation, he said "of course".

Mr Funke Kupper said although the investigation was a "very serious process", "normal processes", including his board position, must be maintained.

"That's the way to run a company," Mr Funke Kupper told Fairfax Media from the sidelines at the Australian Financial Review's Business Summit.

"The company [Tabcorp] will fully co-operate [in the AFP investigation], as it should.

"If I'm called on to participate during the course [of the investigation], I would."

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Mr Funke Kupper, who is now managing director of the ASX, also won the backing of the stock exchange's chairman, Rick Holliday-Smith.

Mr Holliday-Smith said he was "not aware of any reason" why Mr Funke Kupper should step down from his position overseeing the ASX, in which he is expected to set a high benchmark regarding the law and corporate governance.

"Elmer is continuing in his role as ASX managing director and CEO," Mr Holliday-Smith said.

"I am not aware of any reason why this should change. I note that Tabcorp released a statement yesterday saying that the AFP had commenced an investigation and that the company will fully co-operate with the investigation. Accordingly, it is not appropriate for ASX to make any further comments at this time."

The AFP confirmed on Tuesday it was "conducting an investigation into allegations of foreign bribery relating to an Australian company [Tabcorp]".

"The AFP works closely with domestic and international partners in investigating allegations of foreign bribery. As the investigation is currently ongoing, the AFP will not be commenting further at this time."

Fairfax Media reported on Tuesday the $200,000 sum was channelled via the United States to Cambodia in early 2010, when Mr Funke Kupper was boss of Tabcorp and examining, with a small team of executives and advisers, how the gambling operator could expand into Asian sports betting.

A Cambodian government official dismissed the allegation as "baseless", according to the Phnom Penh Post.

"I think that these allegations are baseless," Phay Siphan, spokesman for the Council of Ministers, said.

"The PM has no habit of receiving cash from anywhere or anyone.

"If a contribution from a private company is made, it goes to the social fund for building schools or roads. The social fund is not for personal use."

Tabcorp confirmed on Tuesday it had been studying the Cambodian market, but said it never pursued the "opportunity".

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