Senator Andrew Bragg
Shadow Assistant Minister for Home Ownership
Liberal Senator for New South Wales
STATEMENT
Senate delivers decade old secret Cbus report
Ten years after its completion, the Samuel Review of Cbus Super is finally available for inspection. As a beneficiary of Australia’s compulsory superannuation system, Cbus’s operations and performance are of great public interest.
In the past six months, we have seen an extraordinary failure of Cbus to meet and pay its insurance obligations to members. We have also seen significant payments made to the corrupt CFMEU, which remains a shareholder and part owner of Cbus.
The Labor Government has been loath to critique Cbus.
These are not surprising developments as the fish rots from the head. How can an organisation owned and controlled by the crooked CFMEU be entrusted with the people’s money?
As these are not new issues, the Senate sought the publication of a historical report which canvassed significant governance issues.
Cbus is facing another prudential review and a new governance report by Deloitte. These are not new issues. A report was completed by Graeme Samuel in 2015 into these same issues.
Late last year an Order for Production of Documents was passed by the Senate. The Treasurer Jim Chalmers said: “APRA has indicated that the report is likely to be considered protected.”
However the Clerk of the Senate said: “To confirm: the [APRA Act] does not contain any provisions that would constrain the Senate’s powers.”
With the Senate agreeing to an attendance motion to force Minister Gallagher to the Chamber to explain why the Executive had not provided the document, the government relented.
The report makes clear the governance standards at Cbus were as broken then as they are now. Samuel makes the case for independent directors and a stronger conflicts framework. According to Samuel, the ACTU nominates the Chair of Cbus which is a howling, unmanageable conflict of interest.
Samuel made clear recommendations for Chair appointment reform, more independent directors, anti-CFMEU conflict rules and the need for written agreements with unions.
It appears no progress has been made in a decade. The government seems uninterested at best and seems unwilling to make improvements for consumers.
The Cbus/CFMEU saga will therefore keep circling under Labor. Unions win, consumers pay.
Australia needs a government for Australians - not for vested interests.