Last updated : 3/15/19 5:11 PM     

Members Guilty Of Fraudulent EPF Housing Withdrawals Sentenced

The Employees Provident Fund (EPF) has taken legal action on several EPF members involved in cases of fraudulent housing withdrawals. Actions were taken against these members as part of the EPF’s concerted effort to curb fraudulent withdrawals.

 

Three members who have been found guilty by the courts for making fraudulent EPF withdrawals have been sentenced and fined between RM600 to RM2,000, with one of them facing a possible jail term of one month. 

 

“The EPF has been diligently working with the police to uncover scams operated by syndicates that prey on members who appear desperate and in dire need of money. To the syndicates and members involved in these fraudulent activities, the EPF will not hesitate to take legal action against them as our members’ interests and financial security during retirement have to be safeguarded,” said Nik Affendi Jaafar, Head of EPF Public Relations.

 

A total of 31 more cases of fraudulent housing withdrawals are still pending for court action of which the highest number of cases were filed in the Petaling Jaya Magistrate’s Court followed by the Kota Bharu Magistrate’s Court. These members, including the three already sentenced, have been charged under Section 59 of the EPF Act 1991.

 

Under this Act, those found guilty of fraudulent withdrawal, or attempted fraudulent withdrawal, are liable to a maximum jail sentence of three years or a RM10,000 fine, or both. Members who have been convicted who return the amount withdrawn to the EPF within six months from the conviction date may only be allowed to apply for the same withdrawal after two years from the date the amount is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. Those who fail to return the amount or return the amount after six months from the conviction date will forever lose their right to make that particular withdrawal.

 

In the past years, several scams involving education, health and housing withdrawals were uncovered whereby members had submitted forged documents to facilitate the approval of these withdrawals. These offenders were subsequently charged and taken to court.

 

“With the present economic environment, we realise that there are perhaps members who will be tempted to resort to deceitful means of withdrawing their EPF savings. However, we would like to reiterate to members that their savings in the EPF are intended for their retirement and whatever the situation, they should never get mixed up with syndicates to deplete their nest egg ahead of time,” Nik Affendi concluded.

 

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.