A former executive at AustralianSuper has accused top officials at the countrys largest superannuation fund of pressuring him to funnel investment into a union-linked property trust despite conflicts of interest.
The funds former head of property Jack McGougan made the accusations in a multi-million-dollar Federal Court action launched this week against AustralianSuper.
Mr McGougan claims he was forced out of his $500,000 a year job for opposing moves by chief investment officer Mark Delaney and director Brian Daley to invest in industry-fund controlled developer ISPT.
He alleges that when he raised concerns over the funds poor management of conflicts of interest in relation to ISPT AustralianSuper chief executive Ian Silk told him you have to drop this.
ISPT is an unlisted property fund and developer set up in 1994 by former ACTU assistant secretary Garry Weaven and co-founded by AustralianSuper.
The allegations thrust the $140 billion industry super fund into the spotlight just as the Hayne royal commission called on more than 30 superannuation funds to appear in hearings next month to examine governance issues.
Mr McGougan was made head of property in 2011 and drove a strategy to invest members funds in property offshore. He was given authority to buy and sell assets up to $200 million.
However, he says...