Last updated : 3/13/19 4:52 PM     

EPF Uncovers College Scams Two Clinics Also Involved

The Employees Provident Fund (EPF) has uncovered several cases of fraudulent withdrawals of savings by members, purportedly for educational and medical purposes.


The Fund's initial investigations into such withdrawals implicated 11 institutions of higher learning and two clinics/medical centres in the Klang Valley.


"This is a serious implication and we will not hesitate to take legal action against the members involved in these fraudulent withdrawal cases," said Nik Affendi Jaafar, EPF's Senior Public Relations Manager.


The EPF's investigations showed that members who had fraudulently withdrawn from their savings did not even receive the full amounts, as between 20 per cent and 70 per cent were paid out as commissions to the external parties involved.


"We would like to remind members that their EPF savings are meant for their post retirement comfort. If they fraudulently withdraw their savings before retirement, they will have much less when they really need it," said Nik Affendi.


Additional security measures have been implemented by the Fund to ensure the practice of fraudulent withdrawals is stamped out.


The EPF's Integrity and Fraud Monitoring Unit, between January and April this year, visited 11 institutions of higher learning and two clinics/medical centres to check on the records pertaining to its members. The officers also interviewed the members.


Nik Affendi said that the EPF will continue to make surprise visits to colleges and clinics and make random checks on their records. Colleges and clinics that indulge in fraudulent withdrawal practises will be blacklisted and future applications from them will not be accepted.


"Members should be aware that they are on the losing end when they cooperate with these institutions as they are merely giving away their old-age savings," he added.


With the evidence that it has obtained, the EPF will lodge police reports against the perpetrators. Those members charged of fraudulent withdrawals are liable for a fine of up to RM 10,000 or imprisonment of up to three years or both under the EPF Act 1991.


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.