TWUSUPER has announced it will not proceed with the merger with EISS Super.
Following extensive due diligence, which kicked off in April this year, TWUSUPER has announced it will not proceed with a merger with EISS “at this time”.
“Any merger must be in members’ best interest,” TWUSUPER said in a brief statement on Thursday.
Reflecting on its decision to enter merger discussions with EISS, TWUSUPER said that at the time it felt members of both funds would benefit from greater scale.
The fund is now “pursuing other growth options”.
EISS made headlines this week after its chairman refused to issue an apology to members over a number of reported incidents within the fund.
On Monday, Peter Tighe – who was only appointed to the EISS board in late September – and CEO Lance Foster appeared at a House of Representatives Standing Committee where they were asked about the fund’s behaviour which MP Tim Wilson previously said “verges on corruption”, including reportedly spending thousands of dollars on football advertising and overseas trips.
MP Jason Falinski directly addressed the reports in his questioning of Mr Tighe and Mr Foster.
“It’s been revealed that staff costs have doubled over the last seven years, you’re one of the worst performing funds available for investors, you’ve spent $3 million on a sponsorship deal with the NRL, you’ve spent $90,000 sending staff to the United States, you’ve given over a million dollars to the ETU both in New South Wales and nationally, you’ve lost four directors and a CEO. I’m just wondering, would you like to apologise to your members?” Mr Falinski asked.
However, Mr Tighe rebutted by saying there is no grounds for EISS to issue an apology.
“No decisions were made at a board level that have not been in the best interests of the fund,” Mr Tighe said.
“I think the fund has delivered well to its membership base and I don’t believe that we need to make an apology for the programs and processes put in place.”
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