old letter-- Gov't must explain losses by EPF subsidiaries

https://www.malaysiakini.com/letters/25577

 Gov't must explain losses by EPF subsidiaries 0 comments Joshua YC Kong, Kota Kinabalu Published 27 Jun 2003, 7:38 am Updated 29 Jan 2008, 6:21 pm


 According to the Star , Malaysia Building Society Bhd (MBSB) has seen its shareholders' funds plummet from RM1.1 billion to a mere RM70 million at the end of last year due to losses incurred over the five-year period to 2002. MBSB is a subsidiary of the Employees' Provident Fund and has been in business for a few decades. It is only among the many KLSE-listed companies, apart from PN4 companies, that caused much financial loss to the EPF - amounting to billions in recent years.

 I wonder if civil servants pensions are also paid from EPF? It is easy to point the finger at the 1997 financial crisis for this massive loss, when in fact this loan company should have good collateral on mortgaged properties.

What has gone awry? It is time that the government investigate this company and other loss-making companies to better explain why EPF dividends cannot be increased to at least eight percent.