Following significant pressure, all three union-appointed board directors have resigned from the Cbus fund’s board of directors.
One of the three resigning directors, Rita Mallia, was a serving union official until Friday, when she was dismissed from her position as NSW construction president.
Former ACT secretary Jason O’Mara has stepped down from his role as a member director of the fund, while the third member, Dave Noonan, was reportedly removed by the CFMEU administrator.
It is understood that the administrator of the troubled union aimed for a complete overhaul of CFMEU positions on the Cbus board.
The members in question have already been removed from Cbus’ website.
Speaking to InvestorDaily, a spokesperson for the fund said the departure of the three directors does not impact the daily operation of Cbus and does not influence the fund’s “unwavering focus on protecting and growing the retirement savings of our 925,000 members”.
“Decisions to appoint and remove CFMEU directors to the Cbus board remain with the national executive of the union, which is currently under control of the administrator,” the spokesperson said.
“We will await further advice from the national executive of the CFMEU and will engage as appropriate on future appointments to the board to ensure members remain at the heart of our decision making.
“The Cbus board and our team of over 700 people remain committed to providing strong governance and services that serve the best financial interests of members.”
The resignations follow the Australian Prudential Regulation Authority’s (APRA) recent directive for Cbus and two building industry funds managed by BUSSQ to undergo independent reviews, to determine whether their CFMEU-affiliated directors were fit for their roles.
Liberal senator Andrew Bragg has been outspoken about the need to exclude Cbus from the Housing Australia Future Fund due to its alleged links to the CFMEU, even introducing a bill in the Senate to formally ban Cbus’ involvement.
“Cbus’ formal and legal affiliation with the CFMEU has made it an untenable party with which to do government business,” the bill’s memorandum reads.
“Allowing Cbus and its affiliate union, the CFMEU, to participate in the HAFF further risks the integrity of taxpayer funds.”
Cbus has strongly denied Bragg’s claims, noting in a statement last week that any suggestion that a super fund would be the recipient of funds via the HAFF is “wrong”.
“A super fund is not involved in the design, construction, or approval of any of these projects,” Cbus Super chief investment officer Brett Chatfield said.
“Once the settings are right and agreed upon, a super fund would be the provider of debt funding to the relevant party, such as a community housing provider, rather than the recipient of HAFF project funding.”
In November 2022, the super fund announced it has committed to investing up to $500 million over five years to support the construction of new social and affordable homes, made through the Housing Australia Future Fund (HAFF) as part of the government’s National Housing Accord.
Earlier this year, CareSuper, Hostplus, Rest, IFM Investors, and Cbus stated they were seeking to collectively partner with community housing providers to support an initial investment in social and affordable housing through the HAFF.
The CFMEU’s nominees were not the only union nominees on the board of Cbus; nominees from Master Builders, the Australian Workers’ Union, and other unions also serve on the board.
Namely, industry funds like Cbus currently operate under the equal representation model, which dictates that employers and unions each appoint several directors to trustee boards. Government reviews into the matter have advocated for greater independence, but most recently, Labor rejected calls to limit union influence on super.
