CFMEU troubles yet to touch Cbus
As the Construction, Forestry, Maritime and Energy Union (CFMEU) finds itself in the media and political spotlight, the superannuation fund it spawned, Cbus, continues to grow via both member numbers and mergers.
Cbus differs from many other industry superannuation funds because it is not only an investment vehicle for members’ funds, it is also an active participant in the Australian building and construction industry via Cbus Property..
But, as reports continue to emerge around allegations of corruption within the CFMEU, it is worth reflecting that of the 13 people sitting on Cbus trustee board of directors, just three have been sponsored by the CFMEU.
The other member-sponsored directors are from the Australian Workers’ Union (AWU), the Communication, Electrical and Plumbing Union (CEPU) and the Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union.
The remaining directors are either sponsored by employer groups or are independent directors such Cbus chair, former Labor Federal Treasurer, Wayne Swan and former HSBC economist, John Edwards, who is chair of the fund’s risk committee.
However, it is worth noting the degree to which union influence has played a role in the mergers which have been undertaken by Cbus, most recently with respect to the fund’s merger with NSW-based electricity industry fund, EISS Super.
In 2021 Cbus also merged with the fund covering the media and entertainment industries, Media Super.
The relationship between the CFMEU and industry superannuation funds has been the subject of questioning by Federal Opposition Senators during Senate Estimates this year, with the Australian Prudential Regulation Authority (APRA) having been asked to get to the bottom of why FIRST Super had made four $700,000 payments to the CFMEU.
The regulator was also asked to explain what progress had been made with respect to an investigation it has been undertaking into superannuation funds payments which APRA admitted had been underway for two years with no specific outcome.
APRA deputy chair, Margaret Cole declined to answer specific questions from NSW Liberal Senator, Andrew Bragg, on the basis that APRA’s activities related to an ongoing investigation
As well, the CFMEU construction division boasts having “local Cbus coordinators” who are available to visit workplaces to “provide information and general advice on super”.
Regulatory Capture Corrupted APRA do NOTHING to stop Industry Super dodgy payments & donations.
2 years & no answers to Senate questions ???
How can such blatant stalling, stonewalling & corruption be allowed to continue ???
most concerning they have done nothing years and years of news about super paying money to unions and nothings investigated until the public know about it, APRA press conference we are going to make sure a proper investigation is done, don’t worry about we didn’t do our jobs, we turned a blind eye for the promise of a big job and sporting tickets. Don’t ask us about our staff have KPI’s and bonuses on fines and successful cases so they sit on their hands to get a bigger bonus and this is a huge conflict of interest.
It concerns me that only months ago the Government was considering giving Union based Industry Funds the power to advise their own super clients with no real regulation in an environment where they can appoint kids off the street and call them ‘qualified advisers’.
They want you to trust the trustees of these funds with the members money in what would have been one of the greatest financial conflicts of interest in this country’s history.
The danger is this legislation is still on the table. These same trustees have already been handing members money to organised criminals in the construction industry as we have seen.
I can imagine giving these same trustees the power to advise their members in a conflicted environment could only lead to a disaster on a scale we have never seen before.
Let’s face it this small group of trustees holds trillions of dollars of members and essentially the country’s wealth.
The links to corrupt Unions to this money is already way too close for my liking.
Calling unqualified workers ’qualified advisers’ is what the labour government and treasurer almost signed off on.
Imagine the corruption that could arise in this situation. This is why the Government and treasurer need to take this’Conflict of Interest’ they are proposing to create more seriously!
Well said.