On Monday, Peter Tighe – who was only appointed to the EISS board in late September – and CEO Lance Foster appeared at a House of Representatives Standing Committee where they were asked about the fund’s behaviour which MP Tim Wilson previously said “verges on corruption”, including reportedly spending thousands of dollars on football advertising and overseas trips.
The news saw former CEO Alex Hutchinson resign that week while more senior changes were made soon after.
MP Jason Falinski directly addressed the reports in his questioning of Mr Tighe and Mr Foster.
“It’s been revealed that staff costs have doubled over the last seven years, you’re one of the worst performing funds available for investors, you’ve spent $3 million on a sponsorship deal with the NRL, you’ve spent $90,000 sending staff to the United States, you’ve given over a million dollars to the ETU both in New South Wales and nationally, you’ve lost four directors and a CEO. I’m just wondering, would you like to apologise to your members?” Mr Falinski asked.
However, Mr Tighe rebutted by saying there is no grounds for EISS to issue an apology.
“No decisions were made at a board level that have not been in the best interests of the fund,” Mr Tighe said.
“I think the fund has delivered well to its membership base and I don’t believe that we need to make an apology for the programs and processes put in place.”
Mr Tighe also rejected a question by Mr Falinski about possibly resigning if a member or shareholder raised concerns within the fund, saying he has not been approached about any grievances.
“If I thought that there was a failure of my responsibility under the SIS act as director and chairperson of the fund and I had breached my responsibilities, I would consider that,” he responded.
“But I certainly wouldn’t if someone indicated that they were unhappy with the fund and sought my resignation.
“I’d like a bit more substance before I’d consider that as an outcome.”
Neil Griffiths
Neil is the Deputy Editor of the wealth titles, including ifa and InvestorDaily.
Neil is also the host of the ifa show podcast.
