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Cabinet should make a five-point decision tomorrow to restore public confidence if EPF is to declare lowest dividend in 40 years of below 5% for 2002

Media Statement
 by Lim Kit Siang

(Penang,  Tuesday): The Cabinet should make a five-point decision tomorrow to restore public confidence if the Employees Provident Fund (EPF) is to declare the lowest dividend in 40 years of below 5% for 2002, viz:

  • a full and satisfactory explanation for the EPF declaring the lowest dividend in 40 ears of below 5% for 2002, to convince the 10 million EPF contributors that this was not because of imprudent equity investments, bad loan decisions or bail-out operations gone wrong;

  • amendment of the 1991 EPF Act to allow for direct representation of EPF contributors on the EPF Board and EPF Investment Panel;

  • a new EPF policy on accountability and transparency, as making public its shares dealings in the stock market and beneficiaries of its loans;

  • a mechanism for interaction between the 10 million EPF contributors and the EPF Board and Management; and
    " "green light" for establishment of an EPF Contributors' Association.

At present, although there are workers' representatives on the EPF Board, they are not represented on the EPF Investment Panel. Furthermore, the six trade union representatives on the EPF Board are mostly kept in the dark about the share dealings of the EPF Investment Panel.

EPF has a history since the eighties of using EPF monies to jack up the stock market, resulting frequently with the fingers of the millions of EPF contributors being burnt and up to now, there is still no accountability whether as to the huge sums lost or disciplinary actions against those behind such irresponsible decisions.

The time has come for the Cabinet to send out a strong message that there should be greater accountability, transparency and good governance in the EPF by giving the "green light" for the establishment of an EPF Contributors' Association to protect the rights and interests of the 10 million EPF contributors, with powers to hold the EPF Board and EPF Investment Panel to account through periodic meetings for the propriety, probity and profitability of all EPF decisions.

(4/3/2003)

* Lim Kit Siang, DAP National Chairman