Two Members Guilty Of Fraudulent Housing Withdrawals
The Employees Provident Fund (EPF) today reports that two members have been sentenced by the courts between October and December 2013 (Q4 2013) for making or attempt to make fraudulent housing withdrawals. The two members were convicted under Section 59 of the EPF Act 1991 and fined RM800 each.
In a statement today, EPF General Manager for Public Relations Nik Affendi Jaafar said: “We would like to remind our members that the EPF savings is meant to finance their basic retirement needs when they retire. Any attempt to deceitfully withdraw their savings, therefore, goes against the core reason of saving with the EPF; they will only be at the losing end.
“Fraudulent withdrawals involve the submission of falsified documents by members to facilitate the approval of withdrawals from their EPF account. We have a zero-tolerance policy against fraud and will not hesitate to take legal action against members involved in any instances of fraud.”
From January until December 2013, a total of 30 court summons had been filed against EPF members involved in fraudulent withdrawals. During the same period, 10 members had been found guilty by the courts for fraudulent housing withdrawals while 20 cases were pending court action.
Under the EPF Act 1991, those found guilty of committing fraudulent withdrawals is liable to a maximum jail sentence of three years or RM10,000 fine, or both.
Convicted members who return the money withdrawn within six months from the conviction date will only be allowed to apply for the same withdrawal two years after the date the amount is returned. Those who fail to do so will forever lose their rights to make the same withdrawal.
Nik Affendi stressed that the EPF had a strict and comprehensive system in place to detect and identify members who had made fraudulent withdrawals, even after the savings had been successfully withdrawn. Each EPF withdrawal application and accompanying documents would be thoroughly reviewed and checked with relevant parties to ensure its authenticity.
In addition, members are advised to be cautious of syndicates who claim to offer assistance to withdraw their EPF savings in a fraudulent manner for an exorbitant fee.
“Members should not seek any assistance from a third party as the process of making EPF withdrawals is simple and straightforward, provided that all terms and conditions have been met. Our officers are ready to assist members and more importantly, our services are free of any charges,” he said.
Members are urged to support EPF’s combat against fraud. Anyone wishing to report any instances of fraud or attempts to commit fraud can do so by calling the EPF Anti-Fraud Hotline at 03-2616 2121during 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.