Cbus chairman Wayne Swan ducks Senate questions on super scandal

Cbus chairman Wayne Swan has turned down a request to appear before a Senate committee, claiming he has nothing to add to the evidence provided by chief executive Kristian Fok.

Cbus chairman and ALP national president Wayne Swan. Picture: Tim Hunter

Cbus chairman Wayne Swan has turned down a request to appear in front of a Senate committee to answer questions over allegations the superannuation fund mishandled death and disability payouts, prompting criticism from the Coalition.

Mr Swan told Senate economics references committee chair Andrew Bragg he had nothing to add to the evidence provided to the committee a fortnight ago by chief executive Kristian Fok.

Senator Bragg last week invited Mr Swan – the ALP’s national president – to attend Wednesday’s meeting at Parliament House in Canberra “in person or via videoconference” as part of the committee’s inquiry into improving consumer outcomes in Australia’s retirement system.

Senate economics references committee chair Andrew Bragg. Picture: NewsWire/Martin Ollman

“While questions put at the hearing may go to any aspect of the inquiry terms of reference, the committee has a particular interest in better understanding Cbus Super’s apparent failings in relation to the handling of claims for death benefits and total and permanent disability insurance,” Senator Bragg wrote to Mr Swan and Cbus risk committee chair John Edwards.

“To allow for proper consideration of this matter, the committee believes it is necessary for you to personally appear at the hearing, rather than another representative of Cbus Super.”

But Mr Swan told Senator Bragg he would not be attending to answer questions that are being pursued in the Federal Court by the corporate regulator.

“Our CEO, Kristian Fok ­appreciated the opportunity last week to share with the committee how Cbus is working to improve the way we manage claims made by our members and their loved ones,” Mr Swan wrote on Friday, in a letter obtained by The Australian. “These matters remain the subject of legal proceedings by ASIC, and we are focused on continuing to improve the support we provide members.

“Given that, John (Edwards) and I would not be in a position to add anything further to the areas of particular interest to the ­committee at this time.” Senator Bragg told The Australian the Senate had “questions for the board which only the directors can answer”.

“The law is very clear on ­accountability. Under the superannuation law, the directors are accountable for governance, conflicts of interest and material decisions such as the appointment of service providers,” Senator Bragg said. “I expect we will hear from whoever we call to provide evidence. There are howling conflicts of interest here which are of public interest which our inquiry will continue to probe. No Australian is above the law.”

Earlier this month, the Australian Securities & ­Investments Commission revealed it was launching a case against Cbus in the Federal Court alleging the $94bn industry fund mishandled $20m in insurance money owed to grieving families and people with disabilities.

ASIC is claiming the fund in some cases took more than a year to pay out death benefits or disability payments and did not take appropriate action when it was warned about the failures.

Despite the scandal, Mr Swan is under no pressure to step down as ALP national president, a role he has held since 2018.

Appearing before the Senate economics committee the week ASIC launched legal action, Mr Fok blamed a delay in death and disability payments on the ­Japanese-owned company the fund outsourced to administer claims. “The delays, as I indicated, have primarily emanated from our administrator. We are still responsible for it,” he said.

Mr Fok apologised to affected members and their families, saying it was also partly a result of the fund growing at a faster pace than it could hire staff. “Like many ­institutions experiencing rapid growth, it has taken time for Cbus to mature and attract the right personnel to meet our needs,” he said. “Since being appointed as CEO last year I have, with the strong endorsement by the board, initiated some significant changes in our leadership and ­organisational capabilities in order to address the need to ­improve the outcomes we need to deliver for our members.”