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Concerns raised over ‘rorting’ in industry funds
New legislation is needed to deal with allegations of "horrific" rorting of industry super funds, former NSW Treasurer, Michael Costa believes.
Speaking on The Bolt Report, Costa said the Royal Commission into Union corruption needed to deal with three key issues relating to the governance of the trade unions, the Labor Party and the industry super funds.
"There's billions of dollars in these funds and they are badly managed in terms of corporate governance," he said.
"The Royal Commission has exposed some massive problems in relation to three areas. One is the question of trade union governance, the second area, which I think is probably the most important, is the governance of industry funds.
"I think there needs to be legislation coming out of this Royal Commission to deal with that. The rorts that are going on in there are horrific and they need to be dealt with.
"And the third area is the political — and that is again this question of Labor's relationships with the unions."
At the time of publication Super Review was awaiting a comment from Industry Super Australia in response to Costa's claims.
AUTHOR
Nicholas O'Donoghue
Nicholas is a journalist for Money Management and Super Review. Nicholas has several years experience as a journalist, reporting and managing websites for various news publications covering the medical and pharmaceuticals sector.
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