HESTA CEO Debby Blakey to Depart Amid Outage Aftermath
HESTA chief executive Debby Blakey is set to depart from her role later this year after more than a decade of service. Her departure follows a period of significant transformation for the organization and comes after a major service outage experienced by the superannuation fund.
Major Service Outage Details
The outage, originally scheduled for seven weeks, occurred as HESTA transitioned administration providers from MUFG to Grow Inc. The disruption extended beyond the planned duration, in some cases lasting months. This left many members unable to access funds for various needs, including surgery, home deposits, and nursing home fees. Members also reported experiencing long wait times when attempting to contact the fund by phone.
The disruption extended beyond the planned duration, in some cases lasting months, leaving many members unable to access funds for various needs, including surgery, home deposits, and nursing home fees.
APRA Intervention and Concerns
In December, the Australian Prudential Regulation Authority (APRA) took action regarding the fund's operational issues. APRA deputy chair Margaret Cole stated that the outage resulted in "severe, prolonged disruption" that directly affected some members. This raised concerns about HESTA's risk management and board governance during the transition period.
APRA deputy chair Margaret Cole stated that the outage resulted in "severe, prolonged disruption" that directly affected some members, raising concerns about HESTA's risk management and board governance during the transition period.
HESTA's Scale and Leadership Transition
HESTA is Australia's 10th-biggest superannuation fund, managing over $100 billion in assets and serving more than 1 million members, predominantly from the health sector.
Ms. Blakey, who has been with HESTA for 17 years and CEO for 11, indicated her decision was based on a desire to shift her focus to a board position. The HESTA board is currently undertaking a search for her replacement, with an announcement expected by July.