Last updated : 3/15/19 4:57 PM     

Police Reports On Fraudulent Withdrawals

The Employees Provident Fund (EPF) has lodged police reports in connection with 26 cases of fraudulent withdrawals and attempted fraudulent withdrawals under the Incapacitation Withdrawal in Penang and Perak.


The police reports were lodged at the Balai Polis Bukit Mertajam by Mr D. Devadoss, Penang EPF State Senior Manager for six cases of fraudulent withdrawals and 19 cases of attempted fraudulent withdrawals.


While in Perak, EPF State Enforcement Manager, Encik C. Baharudin Wahab lodged a police report at the Balai Polis Sungai Senam in Ipoh against a member for attempted fraudulent withdrawal.


Investigations by the EPF teams in both states showed that the applications to withdraw under incapacitation were made using forged medical reports purportedly issued by Government hospitals and clinics stating that the applicants were not medically fit to work.


The police reports culminated a three-month investigation in Penang where applications to withdraw under incapacitation came under scrutiny following "copycat" contents in the medical reports, blurred names and signatures of doctors and incomplete letterheads of the "issuing" hospitals.


The EPF team, upon meeting with hospital directors and medical officers of the various hospitals concerned in the state, found that 25 of the applications had used forged medical reports.


In Perak, the State EPF team found that the member who had attached his medical report from Hospital Seberang Jaya in Penang, was not even a patient at the hospital. In addition, the signature of the doctor that was said to provide the report specifying that he was no longer medically fit to work, was found to be forged.


"We take a serious view of fraudulent withdrawals and the fact that we have made police reports in Penang and Perak is a testimony to our resolve to end this unhealthy practice," said Encik Nik Affendi Jaafar, EPF's Senior Public Relations Manager.


"It is sad that some members have to resort to fraudulent means to withdraw under incapacitation. What is even sadder is that some of them will not get the full sum withdrawn as a large portion of such withdrawals goes to pay third parties, as was the case in Perak," he added.


Under Section 59 of the EPF Act 1991, anyone found guilty of giving false or untrue information with the view of withdrawing fraudulently from the EPF can be jailed a maximum of 3 years or fined up to RM10,000 or both.


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.