Press Statement: EPF SHOULD BE ACCOUNTABLE FOR THE DUBIOUS TRANSACTION DEALS

 

EPF SHOULD BE ACCOUNTABLE FOR THE DUBIOUS TRANSACTION DEALS

C4 Center is deeply concerned with yet another alleged multi million dollar scandal revealed by Primary Industries Minister Teresa Kok recently. The loss of RM 800mill by Malaysian Rubber Board (MRB) on the sale of 1, 120ha of land in Sungai Buloh is rife with suspicious dealings.

The chronology of the transactions listed below:

Year

Arrangement

May, 2010

The Cabinet approved the Malaysian Rubber Board (MRB) to develop the land into Kwasa Damansara

Oct, 2010

Under the former Prime Minister Najib Razak, MRB was instructed to sell the land to Asset Tanah Nasional Berhad (ATNB) for RM 1.5bil

Aug, 2012

ATNB completed the land sale to Kwasa Land for RM 2.28bil

Kwasa Land is a company wholly owned by the Employees Provident Fund (EPF).
 

Questions arise as to why the previous government forced the transactions of the government land to a middle agency which then led to the land sale to the EPF for millions of ringgit in profits.
 

It is untenable that a government-linked investment company (GLIC), and more so a pension fund like the Employees Provident Fund (EPF) is involved in questionable transactions and business deals without adhering to proper ethical guidelines and standards.

 

Why was the ATNB used as an intermediary? Who eventually pocketed from the 800 million?

 

The EPF’s response that the purchase was made at arms length, is irresponsible, to say the least.

As a pension fund of millions of tax payers, it owes us the responsibility of more details and proper clarifications.
 
Just last week, another bailout scandal involving EPF and another GLIC on the ownership of Battersea’s Power Station redevelopment in South London was reported.

Based on the report by The Financial Times (16th December 2018)[1], the transactions have raised red flags over construction cost and disputes over the value of the Northern Line Underground extension area in the United Kingdom.

 

C4 Center urges that:

1.    The EPF must immediately provide clarification on both the MRB RM800 million scandal and the Battersea deal and show proof of its statement to immediately ease public concerns.

2.    We urge other Ministers to follow the lead of Teresa Kok and the MRB to expose fraud and corruption, and work to rectify these immediately, as the public has a right to know.

 

3. We further urge the PH government to urgently form an independent committee on GLIC and GLC reforms, to stop these bodies from being used for political financing purposes.

 

Released by:
Cynthia Gabriel (Ms.)
Executive Director, C4 Center

 

[1]     Financial pressures haunt Battersea power station regeneration plan, Financial Times 16th December 2018 https://www.ft.com/content/c0afbbb2-ef24-11e8-89c8-d36339d835c0