G. Rajasekaran heads the protem committee of the EPF Contributors’ Association
to protect rights of 9.7 million EPF members and the the safety and
quality of the RM181 billion EPF funds which would reach RM200 billion
by the end of the year
(Kuala Lumpur, Monday): I am glad that
by show of hands, all those attending the “Bailouts and Buyouts - Are EPF,
Pensions Trust Fund & public monies safe?” public forum tonight are
quite unanimous on five burning issues about the Employees Provident Fund
(EPF), namely that EPF contributors:
- DAP forum on “Bailouts and Buyouts - Are EPF, Pensions Trust Fund
& public monies safe?”
by Lim Kit Siang
are dissatisfied with the six per cent dividend, the lowest in 25
years, declared by the EPF for last year;
disagree with the two per cent EPF contribution cut from 11 per cent
to nine per cent for employees for one year announced by the Prime Minister,
Datuk Seri Dr. Mahathir Mohamad in the government’s RM3 billion economic
stimulus package to counter the US economic recession;
oppose the EPF’s participation in the Time dotCom IPO bailout, incurring
some RM110 million losses from its RM269.28 million investment in Time
support the call for a new EPF policy of accountability and transparency
on its equity, loan and other decisions involving the RM181 billion
EPF funds which would reach RM200 billion by end of the year.
support the establishment of an EPF Contributors’ Association to protect
the rights and interests of the 9.7 million EPF contributors.
We have had a discussion before the forum started and I am happy
to announce the formation of a protem committee for the establishment of
the EPF Contributors’ Association to protect the rights and interests
of 9.7 million EPF members and the the safety and quality of the
RM181 billion EPF funds which would reach RM200 billion by the end of the
The EPF Contributors’ Association protem committee are:
Chairman : G. Rajasekaran,
Vice Chairman : Syed Shahrir, National Union
of Transport Equipment &
Allied Industry Employees’ Union Executive Secretary
Secretary : Mohd Shaani bin
Abdullah, Treasurer, FOMCA
Treasurer : Ng Chee Siong
Members : N. Marimuthu,
Mohd Yusuf Abdul Rahman, FOMCA
Mohd Khalid bin Atan
It is most timely that the EPF Contributors’ Association is formed to
rally together the 9.7 million EPF members to protect their rights and
interests and to demand greater accountability and transparency from the
EPF in the management of their funds, which is one of the largest provident
funds in the world.
Recently, many developments affecting the EPF have raised public concerns
about the competence, professionalism, integrity, accountability and transparency
of the EPF.
Last Thursday, for instance, I had asked the EPF to clarify two matters:
whether the RM181 billion EPF funds had been involved in the final-minutes
multi-million ringgit institutional manipulation of the Kuala Lumpur stock
exchange (KLSE) through the Big Three “TMT” stocks - Telekom
Malaysia Bhd, Malayan Banking Bhd and Tenaga Nasional Bhd - in the past
whether EPF had bought some 3.4 million shares in Maybank costing some
RM43 million in the 12 days between March 9 to 27, 2001 incurring
a loss of some RM11 million when Maybank fell to RM9.65 per share at the
end of trading today.
There has been deafening silence from the EPF on both questions.
It is most unfortunate that the EPF has still to respond to the proposal
made by DAP leaders and MPs when we met the EPF Chairman, Tan Sri Abdul
Halim Ali on 21st March 2001 that EPF adopt a new policy on accountability
and transparency as making public its share dealings in the stock market
and beneficiaries of its loans.
Halim had promised the DAP delegation that he would raise at the EPF
Board the proposal for a new EPF policy on accountability and transparency.
Halim should clarify whether he had done this and the EPF Board’s
decision on the matter.
The priorities of the EPF Contributors’ Association should include:
examine and review the investment policy and decisions with regard to the
EPF’s stock market operations. Last year, EPF invested close
to RM39.46 billion in the shares market. The EPF contributors
have a right to know what are the shares bought and sold by the EPF Investment
Panel and its rationale in certain share transactions as for instance its
involvement in the RM1.88 billion Time dotCom IPO fiasco.
scrutinise and review the EPF investment policy and decisions with regard
to loans, which amounted to RM37.63 billion last year to ensure
that there are no loans given to cronies or as a result of imprudent judgements
or improper influence. EPF loan facilities running into billions
of ringgit to various “white elephant” mega-projects and companies,
like the RM1.5 billion to the new Kuala Lumpur International Airport Bhd.
(KLIAB), the billion ringgit loans to Perwaja Trengganu Sdn. Bhd. and even
to Khazanah National Bhd., and the recently-disclosed RM500 million loan
in 1996 to Time Telecommunications Holdings Bhd (renamed
Time dotCom) should be the subject of public debate and scrutiny.
*Lim Kit Siang - DAP National Chairman