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The Employees Provident Fund, EFP, is the largest statutory savings organization in Malaysia. It provides for the old age of the members. Hence, Malaysians are concerned about the management of its resources.

EPF has about 10 million members. It must take good care of the total
resources of over RM140 billion.

The public has great expectation over the savings in EPF for their old age. But, EPF has yet to show its transparency. Its investment activities often cause concern.

The advent of 2002 sees NST entering into a Sale and Purchase Agreement with EPF to dispose of 140 million CAHB shares for RM910 million or RM6.50 per share. NST possesses 12.9% shareholding in CAHB, 140 million being 11.8%. The remaining 4.3 million may be sold to an unidentified buyer.

TRANSPARENCY

Being the largest statutory savings organization, EPF needs an accountable investment panel. This panel includes those well-versed in Islam. Its investment activities must not affect the public badly.

There is controversy over the purchase of CAHB shares at RM910 million. It is reported that NST Group is losing money. The purchase gives the impression that EPF is rescuing the Group. After the sale, it is estimated to save RM70 million in interest.

For some reasons such as poor management, NST Group is not making profit. If it were to make a loss, why should EPF come to its rescue? What is the justification for the EPF buy?

We reiterate that EPF should show its accountability and transparency. We continue to raise this issue, hoping that the Government will protect public funds.

 Dr Tan Seng Giaw