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A board member of superannuation giant CBUS resigned on Thursday after revelations of a secret relationship with the former national secretary of the CFMEU, Zach Smith, whereas the fund simultaneously launched a review into the “fit and proper person” status of another director linked to the union. The developments follow a report detailing widespread corruption within the CFMEU, including alleged ties to outlaw motorcycle gangs and the misuse of billions in taxpayer funds.
Lucy Weber, a CFMEU-appointed director at CBUS, stepped down after the board initiated a review following reports she had not disclosed her relationship with Smith since joining in 2024. Smith abruptly resigned from his CFMEU position last month, citing personal reasons. The Age reported the relationship, prompting the review and Weber’s subsequent resignation.
The scrutiny extends to Earl Setches, a director of CBUS’s property arm and another CFMEU representative on the board. CBUS confirmed it is assessing Setches’ suitability for his role, alongside Weber’s, consistent with its fiduciary obligations. This assessment comes after Setches was photographed dining with Mick Gatto, a figure previously linked to alleged standover tactics within the CFMEU, on a yacht last month.
The unfolding events at CBUS occur against a backdrop of damning findings from a report by Geoffrey Watson SC, tendered to Queensland’s Commission of Inquiry into the CFMEU on Wednesday. The report alleges that during the tenure of former CFMEU national secretary John Setka, the union actively employed criminals, including members of outlaw motorcycle gangs, and forced contractors to hire individuals with criminal records. The report estimates $15 billion of taxpayer money was wasted on corrupt payments linked to the CFMEU, particularly through its involvement in Victoria’s $100 billion “Big Build” infrastructure project.
In October 2025, CFMEU administrator Mark Irving, KC, issued a directive prohibiting union officials from meeting with Gatto or other “industrial mediators or fixers” without explicit authorization, citing concerns about potential wrongdoing. This directive followed reports that Smith had arranged a secret meeting between a subordinate, and Gatto. Gatto has publicly denied claims of being a standover man within the CFMEU, stating he has attempted to contact Irving without success.
CBUS, a major industry super fund and the default fund for many CFMEU members, has faced previous questions regarding its governance. In 2024, following Irving’s appointment as CFMEU administrator, he sought the removal of existing member directors from the CBUS board. While some resigned, others were re-nominated or remained in their positions, prompting an independent review by Deloitte. That review found the directors were “fit and proper people” but identified gaps in governance structures that hindered a full assessment of whether their actions were in the best financial interests of members.
The Deloitte review also found the board was highly attuned to managing conflicts of interest, a finding that appears incongruous given the current situation surrounding Weber’s undisclosed relationship. CBUS chairman Wayne Swan, a former federal treasurer, defended the fund’s practices at a parliamentary inquiry in 2024, including payments to the CFMEU for services he characterized as commercially founded and the funding of a union event.
The Australian Prudential and Regulatory Authority (APRA) has not yet commented on the latest developments at CBUS. The Age has contacted CBUS, the CFMEU, and representatives for Smith, Weber, and Setches for comment.
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