A super fund heavyweight's partnerships with the embattled construction union CFMEU may not have been in the best interests of its 900,000 members, a review has concluded.
Cbus, chaired by former treasurer Wayne Swan, released an independent review of its governance and board members on Tuesday, instigated amid heavy scrutiny of the CFMEU's construction arm.
The fund accepted all 26 recommendations including overhauling how it decides and documents extensive payments to the union.
Nearly $1 million in payments were made to the union's various branches in the past financial year, including for rental of premises in Geelong and Perth and cross promotions.
But the review found evaluation of the partnership was dominated by informal processes, including spoken feedback.
"This is not to question intent or whether ultimately decisions are in the best financial interests of members or not," the review says.
"It's just that the documentation, systems and processes do not allow for that decision to be concluded clearly."
It however cleared the appointments of union-linked board members including the CFMEU national president Paddy Crumlin.
Mr Crumlin, former CFMEU ACT president Jason O'Mara and CFMEU legal director Lucy Weber were reassessed against both the fund's former "fit and proper person" test and a more stringent one recommended by the review authors, Deloitte.
All passed, as did sitting board members.
"Cbus will now work with Deloitte, as required by the licence conditions to develop an action plan to address each of the recommendations in the review to be approved by APRA," Cbus said in a statement, referring to the financial regulator.
The fund in recent years has swallowed smaller industry funds for media, energy and electrical workers, increasing its membership by 10 per cent to 900,000 members.
It's the seventh largest industry super fund by total funds under management and the 10th largest overall.
The CFMEU's construction arm was placed into administration in August following allegations of criminal conduct and organised crime links on job sites.
The Fair Work Ombudsman is conducting more than 40 investigations into the building and construction industry involving most CFMEU branches across Australia, as well as its officials and employers.
CFMEU administrator Mark Irving KC has tasked independent advisory firm KordaMentha to probe the Queensland branch, with preliminary findings due this week and a full report by March 31, 2025.
