APRA’s $314,000 2-year investigation into super trade union payments

Amid the controversy swirling around relationships with the Construction Forestry and Maritime Employees Union (CFMEU), the Australian Prudential Regulation Authority has confirmed it has spent over $300,000 on an investigation into payments by super funds.

Having been placed on notice by South Australian Greens Senator, Barbara Pocock to validate what it had done over two years, APRA spelled out what it had spent and the number of staff which have been assigned to the project.

Pocock had referenced APRA’s statements that it had an investigation underway into superannuation fund payments and asked the regulator to detail what it had expended in 2022-23 and 2023-24.

“1. How much has APRA spent on external legal advice on this matter?

2. How many hours has the internal investigation team recorded for this investigation?” the Senator asked.

APRA’s formal response to Pocock’s questions were made public yesterday with the regulator stating that for the 2023 financial year it expended $49,754.57 excluding GST on the investigation while as at 24 June, this year, it had expended $264,306.70 on the investigation,

“APRA has had approximately 3 FTE [full time equivalent] enforcement staff committed to this matter, alongside their other duties, since commencement of the investigation in early 2023,” the regulator’s answer said.

APRA was, however, less forthcoming in answering a question from NSW Liberal Senator, Andrew Bragg, about three payments of over $700,000 made by industry fund, First Super, to the CFMEU for “coordinator costs”.

Bragg had asked APRA deputy chair, Margaret Cole, what she thought was meant by “coordinator costs”.

APRA’s formal response to Bragg was to refer him to an earlier answer it had provided.

APRA last year told Bragg in answer to a question on notice that it “does not comment on entity specific matters.

While it is a matter of public record that APRA has an investigation ongoing, APRA has not made public the name of the entity that is subject to this investigation. When conducting any investigation, APRA aims to be thorough in the gathering of evidence and to ensure all appropriate due process.