CFMEU nominated directors to join Cbus board after test ‘fit and proper persons’ test

The union’s nominated directors Paddy Crumlin, Jason O’Mara and Lucy Weber will join the board of Cbus.

Cbus is pushing ahead with its board renewal as a spotlight shines on the under-pressure fund. Picture: Glenn Campbell/NcaNewsWire

CFMEU heavyweights Paddy Crumlin, Jason O’Mara and Lucy Weber will join the board of Cbus, months after the three board seats were left vacant by a construction union clearout that included Mr O’Mara’s exit.

Cbus on Tuesday confirmed the appointments to the board, saying the three directors had passed an independent ‘fit and proper persons’ test.

But the prudential regulator fired back, saying it was “not yet satisfied” the fund had gone through the required licensing conditions, and suggested it may take further action.

Mr Crumlin, national president of the CFMEU and national secretary of the Maritime Union of Australia, was formerly chairman of Maritime Super, one of the worst performing super funds in the country before it merged with Hostplus in 2023. In a statement, Cbus said Mr Crumlin had “built up extensive skills and experience oversighting contemporary investment and asset management strategies of pension funds, ESG, responsible investment, and fund regulation”.

Former ACT Secretary Mr O’Mara resigned from the board of the $94bn Cbus in August, amid a clearout of CFMEU directors by administrator Mark Irving KC. But Mr O’Mara was nominated to rejoin the board three weeks later.

Ms Weber is the director of Legal and Industrial programs in the national office of the CFMEU.

The appointments come after CFMEU directors were forced off the board in August after the Albanese government put the union into administration following allegations of corruption and links to criminal gangs.

Cbus on Tuesday said all existing and new board directors had satisfied a ‘fit and proper persons test’ as part of an ongoing independent review being conducted by Deloitte, at APRA’s direction.

“After applying a comprehensive ‘fit and proper persons test’ the Cbus board confirmed the appointment of three directors who share a determination to generate the strongest, sustainable financial returns for members and deliver the best possible service,” a Cbus spokesperson said.

“Maintaining equal employer and union representation has been central to our success over 40 years so we’re happy to welcome Jason back and look forward to Lucy and Paddy bringing their knowledge of our sectors to achieve the best possible retirement outcomes and meet the challenges of rapid growth.

“The board is committed to further enhancing its collective skills mix to ensure it is well positioned to approach increasingly complex investment, market and regulatory environments.”

Senator Andrew Bragg said putting CFMEU directors back on the board of Cbus showed the super governance model was “cactus”.

“The CFMEU controls Cbus and a number of other super funds. After helping fuel the housing crisis, the CFMEU should not be allowed to run anything,” Mr Bragg told The Australian.

“Labor doesn’t seem to care about protecting members. All their focus is on protecting unions, as we’ve seen through the section 56 SIS amendments. In Parliament, Labor seems clueless or careless or both,” he said.

Confirmation of the new directors comes as under-fire Cbus battles legal and regulatory challenges that could have potentially dire consequences for the fund. More than that, they have shone a light on widespread weaknesses in the super system, with all funds now on notice over member failures.

The prudential regulator in August ordered Cbus and the Queensland based BUSSQ to engage an independent expert to conduct a review of their ties with construction industry union CFMEU.

APRA also imposed licensing conditions on the two funds “to address concerns regarding fitness and proprietary processes and fund expenditure management.”

This followed allegations of corrupt links between the CFMEU and Cbus, including a senior CFMEU official allegedly boasting to building firms of his connections with Cbus that could influence contracts on developments.

The prudential regulator on Tuesday said it was “not yet satisfied that the processes required to be undertaken by Cbus under the licence conditions are complete”.

“APRA expects Cbus to provide the independent review report in accordance with the licence conditions and, in light of decisions announced today by the Cbus board, will consider whether further action is appropriate,” the regulator said.

Despite the CFMEU being placed into administration following allegations of corruption and links with criminal gangs, Cbus chief executive last week Kristian Fok left the door open to the fund continuing the payment of millions of dollars to the union, which in turn funnels millions into the Labor Party. “We do believe there is incredible value in that relationship,” he told a Senate hearing.

Separately, the corporate regulator has launched legal proceedings against the fund, alleging it mishandled $20m worth of death and disability claims.

The Australian Securities & ­Investments Commission claimed that, in some cases, the fund took more than a year to pay out death benefits or disability payments to some of the country’s most vulnerable people.

Originally published as CFMEU nominated directors to join Cbus board after test ‘fit and proper persons’ test