Catholic Super (CSF) is standing by its chief executive Frank Pegan, despite terminating one of the fund’s senior executives as a result of a continuing forensic review by PwC Australia. Source: The Australian.
Rumours were swirling yesterday about the leadership of the $9.3 billion fund, which had a torrid session in last month’s round of super hearings by the financial services royal commission.
However, the fund’s engagement and growth strategy lead Carlyn Christian said that Mr Pegan remained in his position but was on leave “for personal reasons”.
“We remain in contact and hope he will be able return to work soon,” Ms Christian said in an email to The Australian.
The situation was different for CSF general manager institutional relations Rob Clancy, who was terminated while on leave after being issued with a “show cause” notice.
CSF deputy chairman Peter Haysey was probed in the royal commission about conflicts of interest associated with the payment of $2 million for services provided by companies and individuals associated with Mr Clancy.
Mr Haysey also said he had become aware while preparing his witness statement that Mr Clancy had incurred more than $46,000 in unauthorised expenses in breach of CSF’s corporate credit card policy.
While the deputy chair told the royal commission he was satisfied that Mr Clancy’s unauthorised expenses had been repaid, he was not convinced that the practice had stopped.
He said that a complete review, which CSF confirmed yesterday was being conducted by PwC, was underway.
CSF spent most of 2017 in discussions about a $16 billion-plus merger with Sydney rival Australian Catholic Superannuation Retirement Fund.
The merger didn’t proceed because of CSF’s determination to be the dominant fund and preserve its business model, which includes a small, loss-making bank called MyLife MyFinance.
At the time, royal commissioner Ken Hayne protested: “What does it matter a hill of beans which fund merges into which?”
Catholic Super backs chief Frank Pegan despite inquiry fallout (The Australian)