Unlike many industry superannuation funds, Cbus operates not only as an investment avenue for its members’ finances but also as an active player in Australia's construction and property sectors through Cbus Property.
Despite growing allegations of corruption within CFMEU, it is noteworthy that out of the 13 Cbus board members, only three have direct sponsorship from CFMEU. The rest come from various affiliations, ensuring a mix of influences on the board. These include members from the Australian Workers’ Union (AWU), the Communication, Electrical and Plumbing Union (CEPU), and the union for the Automotive, Food, Metals, Engineering, Printing, and Kindred Industries.
The financial acumen on the board is further strengthened by individuals sponsored by employer groups and independent experts such as Wayne Swan, former Labor Federal Treasurer, and John Edwards, a former HSBC economist who serves as the chair of Cbus’ risk committee.
However, union impact still plays a pivotal role, particularly in Cbus' recent mergers, such as the amalgamation with the New South Wales-based electricity industry fund, EISS Super, and the 2021 merger with Media Super, which serves the media and entertainment industries.
This union influence on superannuation has prompted scrutiny from political figures. Recently, Federal Opposition Senators raised questions during Senate Estimates about the relationship between the CFMEU and industry super funds. This included queries directed to the Australian Prudential Regulation Authority (APRA) regarding four $700,000 payments made by FIRST Super to the CFMEU.
APRA, currently engaged in a prolonged investigation into these payments, has yet to produce concrete results. During a Senate session, APRA's Deputy Chair, Margaret Cole, refrained from providing detailed answers to NSW Liberal Senator Andrew Bragg due to the ongoing nature of the investigation.
Cbus' relationship with CFMEU also extends to practical workplace engagement, with the construction division of the CFMEU boasting local Cbus coordinators. These coordinators provide on-site information and general advice on superannuation, maintaining a direct line to members.
This article has drawn information from a prior report by the original author, Mike Taylor, titled "CFMEU Troubles Yet to Touch Cbus," published on July 16, 2024.
