Courts Convict Four Members For Fraudulent Housing Withdrawals
The Employees Provident Fund (EPF) today reported that four members have been convicted by the courts during the first quarter of 2013 (January - March 2013) for their involvement in fraudulent housing withdrawals.
The four members were convicted under Section 59 of the EPF Act 1991 and fined a total of RM6,200 by the courts. All of them face jail term of up to three months should they fail to pay the fine.
In a statement issued today, EPF General Manager for Public Relations, Encik Nik Affendi Jaafar said, “The conviction of these members demonstrates EPF’s zero-tolerance to any instances of fraud. The EPF as a custodian of members’ retirement savings will not hesitate to take legal action against dishonest members.”
During the same period, a total of 10 court summons have also been filed for fraudulent withdrawals.
Fraudulent withdrawal, which involves the submission of falsified documents by members to facilitate the approval of withdrawal from their own EPF accounts, is a serious offence under the EPF Act 1991. Under the Act, members who have been found guilty of fraudulent withdrawal are liable to a maximum jail sentence of three years or a RM10,000 fine, or both.
In being convicted, members who return the amount illegally withdrawn within six months from the conviction date may only be allowed to apply for the same withdrawal after two years from the date the amount is returned.
“The EPF will closely monitor such members. Those who fail to return the amount or return the amount after six months from the conviction date will ultimately lose their right to make that particular withdrawal forever,” Nik Affendi said.
The EPF has a comprehensive system in place to detect and identify members who have made fraudulent withdrawals even after the savings have been successfully withdrawn.
Nik Affendi alerted members, especially those who are financially in need, to be wary of syndicates that might approach them and offer so-called assistance to withdraw their EPF savings in return for an exorbitant fee.
Members who are eligible and wish to make an EPF withdrawal from their EPF account are advised to deal directly with the EPF which does not charge for its services.
Members are urged to lend their support in EPF's combat against fraud. Anyone wishing to report any instances of fraud or attempts at fraud may do so by calling the EPF Anti-Fraud Hotline at 03-2616 2121 during working hours from Monday to Friday.
About the Employees Provident Fund (EPF)
The Employees Provident Fund (EPF) is Malaysia’s premier retirement savings fund to help its members achieve adequate savings for a comfortable retirement. This is in line with EPF’s vision to help members achieve a better future and the mission to safeguard members’ savings and deliver excellent services. The EPF has evolved significantly from transaction-centric to a professional fund management organisation with a strong focus on retirement security. The EPF is guided by a robust and professional governance framework when making investment decisions. It continues to play a catalytic role in the nation’s economic growth and seeks to cultivate a savings and investment culture among its members to improve the country’s financial literacy level.