Tensions have escalated between the Australian Prudential Regulation Authority (APRA) and the Construction and Building Unions Superannuation Fund (Cbus) after the embattled super fund appointed three directors nominated by a controversial union.
Cbus confirmed the appointments of the Construction, Forestry, Maritime, Mining and Energy Union’s (CFMEU) nominees’ Paddy Crumlin, Jason O’Mara and Lucy Weber after an independent review by Deloitte found they satisfied a “fit and proper persons test”.
However, the prudential regulator said it was not yet satisfied that Cbus had completed the processes required under its licence conditions.
Noting that it could not approve or prevent board appointments, APRA said Cbus’ trustee was required to engage an independent expert to review its compliance with the duty to act in members’ best financial interests in making expenditure decisions.
The review was required to cover fitness and propriety policies, practices and decisions related to directors and board appointees.
“APRA expects Cbus to provide the independent review report in accordance with the licence conditions and, in light of decisions announced today by the Cbus board, will consider whether further action is appropriate,” the regulator said in a statement.
Cbus, which manages $94 billion of retirement savings for more than 900,000 members, said in a statement that its Board confirmed the appointment of the directors nominated by the CFMEU after applying a comprehensive “fit and proper persons test”.
Crumlin is National President of the CFMEU, O’Mara is General Manager of operations at the Canberra Tradesman Union Club and Weber is the Director of Legal and Industrial programs in the national office of the CFMEU.
Some CFMEU officials or members have previously been accused of involvement in organised crime, corruption, workplace violence, bullying and intimidation, misuse of funds, and illegal or unethical conduct.
Cbus has also been accused by the Australian Securities and Investments Commission (ASIC) said country’s corporate regulator of mishandling the processing of insurance claims which cost vulnerable members A$20 million.
The fund manages $94 billion of retirement savings (pension) for more than 900,000 members, who are mainly in the building industry.
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