EPF’s Governance Framework Prevents Fraud On Members’ Funds
The Employees Provident Fund (EPF) reassures our members that it has a strong and robust governance framework in place to prevent fraud on its members’ funds. There has been a recent spate of allegations by irresponsible parties on the transfer of large funds and bonds out of the EPF through fraudulent means. We refute these allegations and reiterate that the alleged letters and proposals are forged documents. As such, the proposal in question was never presented to the EPF and was never under consideration.
The EPF reiterates there has been no transfer of any funds nor bonds as alleged. Arising from the recent annual audit conducted by Jabatan Audit Negara, we can confirm that the bonds in question remain in the ownership of the EPF, via confirmation received from PayNet in January 2018. PayNet is an approved payment system operator regulated by Bank Negara Malaysia (BNM), as well as being a subsidiary of BNM. We further stress that the purported transactions never happened, and both RHB Bank and HSBC Bank have issued statements refuting the allegations.
The EPF’s governance framework requires all proposals to firstly go through a stringent investment evaluation process that includes comprehensive analysis, risk assessment and due diligence by its team of experts. Once the proposal passes the first stage of assessment, it is then subject to rigorous deliberation by the Management Investment Committee (MIC), which comprise senior members of the Investment Division as well as members of EPF’s top management. Only after endorsement by the MIC are proposal papers brought to the Investment Panel for further consideration before final approval. The Investment Panel comprises industry professionals, senior members of the EPF management, as well as representatives from BNM and the Government.
The EPF remains steadfast in fulfilling our mandate to protect and safeguard our members’ savings. Given the deliberate and repeated attempts to harm the EPF’s reputation and cast doubt on our integrity, the EPF is considering legal action against those irresponsible parties and individuals who have published such damaging statements.