CEO of EPF Proposed to Stop Contributors from lump sum withdrawal of their own pension savings when they reach the age of 55.
The CEO of EPF has now decided that Malaysians have no right to withdraw their own money that they have saved with EPF for their retirement because Malaysians at the age of 55 are incapable to manage their monies and at such are a menace to the government. Therefore, the management of EPF who are financial planning & investment proffessionals decided unilaterally to dictate the ways and means how Malaysians will be allowed to spent their own monies.
What a great irony to suggest that the contributors are idiots and stupid when we have seen the results and outcome of investment made by EPF over the last few years had proven beyond doubt that EPF management are exceptionally incapable & unreliable fund managers - the record speaks for itself.
Past Records & Issues:
13th August 2001, NSTP, the then Deputy Prime Minister Pak-Lah said that "EPF is responsible for overcoming weaknesses in its computer ownership scheme. EPF was duty bound to protect the interests of contributors as this involved their saving. Pak Lah was responding to a report that 150,000 units of computer worth RM525million had yet to be delivered although money had been paid by EPF to the vendor.
10th. March 2002 publication in The Star: it was recorded that 10 EPF employees were reportedly interviewed by police for questioning on the latest scam that came to light the previous week.
On 15th March 2002 news publication (The Star), YB Lee Kah Choon, the MP for Jelutong mentioned that EPF had invested more than one billion ringgit in its subsidiary company, MBSB which had recently announced losses of RM950million.
On 7th October 2002 publication in The Star, an article shows that EPF had substantial equity interest in 20 listed companies that are under intensive care unit (ICU) and which were classified as PN4 companies. The amount of losses on those investments are unpublished & it give rise to the question of who is paying for those losses and who is responsible for the supposely "PRUDENT" investment?
on 12th October 2002, Datuk Azlan Zainol, the CEO of EPF states that "We (EPF managers) want to benchmark ourselves against the best fund managers." I just wonder, is there any statistics to informed members of the KPI and what is the benchmark?
In another article, the Chairman of EPF, Tan Sri Halim Ali made a statement that "As chairman of the investment panel, I must say that I am fully satisfied with their (EPF)performance. They have carried out their work professionally & have never deviated from the task entrusted to them."
There were numerous scandals/scams that occurred in EPF & which were investigated by the authorities, and many of the EPF empoyees were indicted for corrupt practices.
Records of events over the last few years do indicate the lack of wisdom on the part of EPF in their strategic investments and lending practices which have led to low returns and the high level of risks taken without proper analysis and due diligence conducted. At such it had resulted in the poor dividends paid to contributors over the last few years which was disappointing and disgusting. Most contributors had felt that the management of EPF had not taken reasonable steps to protect the members monies. There simply is a lack of professionalism & if we analyze the performance and the returns; presumably, it won't be totally wrong to suggest that those managing the monies are more interested in their personal interest and gains. Yet, continually, EPF claimed to be managing well.
I'm not sure whether the new prime minister will look into EPF in the same manner & passion as he has done with the Immigration dept. But I would bravely suggest that the whole management of EPF be revamp & the CEO be replaced together with the team of theatrical directors (and the Chairman too)and that they should be relocated to Hollywood to perform with George Bush, the world best actor.
(PREVIOUSLY PUBLISHED ON NOVEMBER 2003)
2 comments:
For your information sir, the govt has taken measures to revamp the EPF. Thats why they elected the current CEO and Chairman in 2001.The scandals and scams you mentioned above are due to the mismanagement of previous directors and chairmans.
And, the board of directors of EPF has limited say on the matter concerning the withdrawals etc as the important matters has to be pre-approved by the govt - aka the Ministry of Finance ----> In other words they have the final say.
Thank you.
RESPONSE TO REMARKS:
Thank you for the information and I believe you.
We do see some changes happening in EPF, particularly the counter-service, and we hope the changes are effective and sustainable. But what about effective investment with comparative ROI?
EPF is an important institution to the nation and those who are made responsible to manage it must understand the needs and expectation of the Rakyat -they are accountable.
Keep up the good change and all Rakyat will appreciate.
But, we need to see better results - "Higher Dividends payout" - NOT 4-5%!!!
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