Superannuation fund Cbus has declined to comment on a report that Chair Wayne Swan has rejected a request to appear before an Australian Senate inquiry to respond to criticism about long delays in making insurance payments to vulnerable people.
The Australian newspaper reported that Swan, a former Australian Treasurer and Labor politician, turned down the invitation from the Senate Economics References Committee for him to appear with Cbus Risk Committee Chair John Edwards.
By 10am (AEDT) Azzet had received no response from Cbus to formal requests for comment on the report.
In a letter to Committee chair Senator Andrew Bragg, the newspaper quoted Swan as saying had nothing to add to the evidence provided to the committee by Cbus Chief Executive Kristian Fok and the matters were the subject of legal action.
“Given that, John (Edwards) and I would not be in a position to add anything further to the areas of particular interest to the committee at this time,” Swan wrote.
The Senate Standing Committee on Economics’ Economics References Committee is inquiring into improving consumer experiences, choice, and outcomes in Australia’s $3.9 trillion superannuation (pension) system.
Cbus (Construction and Building Unions Superannuation Fund) has been accused by the Australian Securities and Investments Commission (ASIC) of costing members $20 million by failing to act efficiently, honestly and fairly in handling death benefits and total and permanent disability insurance claims.
Cbus has apologised for the delays, established a compensation program for affected members and committed to improving claims management but, when he appeared, Fok declined to say if any fines imposed by a court would cost members money.
But Bragg responded by saying the committee expected to hear from whoever was called to provide evidence.
Cbus is also under fire from another regulator for appointing three directors nominated by the controversial Construction and Building Unions Superannuation Fund (CFMEU), which has been accused of involvement in organised crime, corruption, workplace violence, bullying and intimidation, misuse of funds, and illegal or unethical conduct.
The Australian Prudential Regulation Authority (APRA) said it was not satisfied Cbus had met the requirement under its licence conditions covering fitness and propriety policies, practices and decisions related to directors and board appointees.
Cbus is part of what has been called Big Super, the giant industry funds that receive mandatory payments from employers to invest for employees under Australia’s universal retirement savings system.
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