CBUS board backs CEO David Aitkin despite Royal Commission allegations
CBUS chair and former Victorian premier Steve Bracks is backing embattled chief executive David Atkin against the Royal Commission into Trade Union Governance and Corruption's allegations he was involved in the leaking of confidential information about super fund members.
The CBUS board said it was "bemused" by the commission's recommendation Mr Atkin face further investigation by the securities regulator and rejected criticisms the fund's union-influenced culture carried risks for members.
"The board remains satisfied with the evidence that Mr Atkin had no involvement, nor knowledge, of the actions of the two former employees and their alleged breach of the Corporation's Act," Mr Bracks said.
It follows disclosure that two CBUS executives – Maria Butera and Lisa Zanatta – were involved in supplying spreadsheets to the CFMEU containing confidential information about the employees of two companies.
A union official used the information to contact some of the employees with the intention of making them disgruntled with their employees, according to the commission.
The commission described the leak as a breach of privacy, trust, contractual duties and was a "completely inappropriate use of power" by the union.
But CBUS claims it is "very frustrated and disappointed" that Mr Aitkin was "lumped in with people facing more serious matters".
The CBUS legal team highlighted evidence from both Ms Butera and Ms Zanatta that "conceded that neither had ever discussed with Mr Atkin the details of the request", according to a Cbus spokesman.
CBUS has more than $31 billion under management, 720,000 members and 96,000 employers.
Mr Atkin and the fund are under fire at a highly sensitive time for the industry fund sector and the nation's $1.7 trillion superannuation sector, the world's fourth largest pool of managed funds.
A fierce debate is being waged within the sector about industry funds' relationship with trade unions, the independence of boards and the future of default funds, which is where employee's super guarantee contributions go if they do not choose a fund.
Michael O'Neill, chief executive of National Seniors, a lobby group with more than 200,0000 members, said the industry was closely monitoring the stand-off between the commission and CBUS.
"There is a very strong expectation, in fact a need, for strong transparency, boardroom independence and very clear accountability in both industry and retail funds."
The commission posed further questions about whether Mr Atkin improperly used his position to gain advantage at the expense of the fund.
It has recommended that the Australian Securities and Investments Commission make further inquires.
They include asking why the two CBUS employee's accused of leaking the information were "peremptorily dismissed", why they committed perjury, why no one else has been dismissed and why no one within the CFMEU has been the "subject of sanctions".
The commission also expressed concerns about the "difficult and complex issues and conflicts of interest" because of the union's powerful influence over the fund.
These allegedly arise because of the super contributions CFMEU members provide to the fund and that two-thirds of the fund's organisers come from the union.
Mr Bracks said the board is confident the fund's governance and systems "have been reviewed, scrutinised and updated to reflect best practice across the financial system".
CBUS board backs CEO David Aitkin despite Royal Commission allegations Read more: http://www.afr.co
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