I read with disgust the latest scheme by the ruling UMNO to enrich themselves, their bini (wives) and cronies, by plundering our hard earned (and hard taxed) EPF savings.
These people are using RM 55Billion of our EPF money to bail out failed and mismanaged companies and the money given are without collateral. So, what will happen to us and our EPF money when the bail outs fail again! We will be left with the smelly, short end of the stick.
If we wanted to withdraw even RM1.00 from EPF we have to fill in multiple forms and blacken our thumbs multiple times on the multiple forms. AND (Sic…) these well connected companies and people gets away with Billions of our money with no counter-checks as to the money’s use and if they will pay it back. If the money are lost or misused will the companies directors and the people in charge (the people up there!) be investigated by MACC? I don’t think so as they OWN the MACC and the courts!
A Ponzi scheme is a fraudulent investment operation that pays returns to its investors from their own money or the money paid by subsequent investors, rather than from any actual profit earned by the individual or organization running the operation. The system is destined to collapse because the earnings, if any, are less than the payments to investors. -http://en.wikipedia.org/wiki/Ponzi_scheme
Below I put the article that caused me much nausea and vomiting disgust…
http://www.malaysiakini.com/news/179870
EPF loaned RM55bil without gov’t guarantee backing
| Aidila Razak 1:43PM Oct 28, 2011 |
The Employees Provident Fund (EPF) approved loans worth an astounding RM55.1 billion not backed by government guarantees.
However, the Auditor-General’s Report 2010 found only one of the 13 debtors was qualified to obtain a loan without such a guarantee. That particular debtor was extended credit worth RM21.3 billion.
Of the remaining 12 debtors, Khazanah Nasional Bhd and Tenaga Nasional Bhd were exempted from producing government guarantees as they had high credit ratings.
The loans to the two parties totalled RM7.3 billion.
The report also revealed that the EPF had also given out 15 loans worth a total of RM35.69 billion as of the Dec 31, 2010.
Of the 15 loans given, two were made to non-government entities despite having government guarantees. The loans are worth RM5 billion and RM1.24 billion respectively.
EPF in its response said one of the debtors is an incorporated body of the Finance Ministry, while a government agency has a 66 percent stake in the second debtor company.
The EPF Act 1991 allows it to extend credit to the federal and state governments, as well as to companies incorporated under the Companies Act 1965, or set up with the Finance Ministry’s written permission.
The report said that as of the end of 2010, EPF had given out a total RM95.79 billion, earning RM2.52 billion in interest payments for the year.
RM4 bil loan skipped procedure
The year before, EPF was found to have not followed procedure for the approval of a loan worth RM4 billion for a government housing loan scheme.
The application was not tabled at the investment management committee meeting, before being approved on July 3, 2009.
“EPF said this was because the investment proposal was presented directly to the investment panel as an urgent decision was required,” it read.
The audit nevertheless found that EPF was “satisfactory” in its investment and loan activities, and had acted in accordance with Section 26 of the EPF Act.
“However, it should ensure that all department operation manuals for investment and loans are finalised and implemented.
“EPF must also ensure that all loan applications are tabled in the investment management committee meetings before it is passed by the (investment) panel,” it advised.
You are a hundred percent correct, Sir, it is a Ponzi scheme.
The problem is worldwide and people are beginning to wake up to it. Sadly there’s nothing much they can do, it has gone too far and the collapse will be as universal as inevitable—here in New Zealand too, as well as almost everywhere else.
It is the fault of the sham democracy systems, wherein the Elect rule, ostensibly in our name.
We need a true democracy wherein we rule ourselves; or at least a system like that of Switzerland. Both require an alert, educated and rational (thinking) populace—we don’t have that. Hence rough times are coming.
The sad thing is it involves the hard earned money of Most workers in Malaysia as it is compulsory to “invest” in this fund (ie.EPF)…. The idea is to get the money when we retire.
But if through such mismanagement and political interference the EPF fund becomes worthless like a Ponzi scheme, the fund’s collapse will impoverise a huge group of people who were looking forward to enjoy their hard earned money on retiring but finding that their savings have become a big fat ZERO.
What we need is a change of government and a new government that have the will to fight corruption such as this and transparency.
Lastly, the fund managers and politicians involved should be held accountable and charged with corruption.