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APRA seeks to disqualify super co-chair with CFMEU links
Following an investigation into a contract between First Super and the Construction Forestry and Maritime Employees Union (CFMEU), APRA has commenced proceedings in the Federal Court of Australia against First Super director and co-chair Michael O’Connor.
O’Connor also serves as the national secretary of the manufacturing division of the CFMEU.
APRA is seeking orders disqualifying the official from acting as a responsible officer of any corporate trustee or superannuation entity for a period determined by the court.
It is also seeking declarations and penalties against O’Connor in relation to a number of alleged contraventions.
APRA’s investigation looked into a contract between First Super and the CFMEU for member and employer services, which concluded in 2023.
According to the regulator, O’Connor allegedly breached a number of the director covenants contained in the Superannuation Industry (Supervision) Act, including the covenants “to act honestly, exercise the same degree of care, skill and diligence as a prudent superannuation entity director would exercise, act in the best financial interests of beneficiaries, and to prioritise the interests of beneficiaries when in a position of conflict”.
APRA alleges that O’Connor approved the appointment of a CFMEU employee to perform a full-time role under the contract while being aware that the employee continued to undertake a significant portion of work for the CFMEU.
Moreover, the regulator said that he directed or approved the employee carrying out the work for the CFMEU and was aware that First Super was paying fees under the MESC contract, which included an amount covering the full-time wage of the employee.
APRA also alleges that O’Connor did not inform or seek approval from First Super for the employee to carry out work for the CFMEU or seek to reduce the fees payable by First Super under the MESC contract.
Additionally, according to the regulator, O’Connor was allegedly involved in the negotiation of the extension of the MESC contract on behalf of the CFMEU in circumstances where he was in a position of conflict.
AUTHOR
Rhea Nath
Rhea L Nath is a journalist on Super Review and InvestorDaily, with a focus on funds management, superannuation, and institutional investment. Previously, she covered small business and entrepreneurship news at Dynamic Business and multicultural issues at Indian Link Media Group. In 2022, she was named Young Journalist of the Year at the NSW Premier’s Multicultural Communications Awards.
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