MoF: RM6 bil ‘loss’ not stated in EPF financial records

| July 30, 2018

The ministry said this in written reply at the Dewan Rakyat.

KUALA LUMPUR: The finance ministry (MoF) said today the Employees Provident Fund (EPF) did not show a loss of RM6 billion in its financial statement despite claims that its investments value in 10 public-listed companies had declined by that amount a month after the 14th general election (GE14.

The ministry was replying to Shamsul Anuar Nasarah (BN-Lenggong) who asked the ministry to state the reasons that led to a loss of RM6.09 billion in EPF’s investments.

He also asked on the measures taken by the ministry to restore confidence in EPF.

In June this year, The Edge reported that EPF suffered a stunning decline of some RM6.09 billion in its investment value in 10 public-listed companies (PLCs) after it plunged by 12% following the 14th general election.

The paper reported that the value of the investments had dropped dramatically from RM51.21 billion to RM45.12 billion within a month.

It said the construction sector was the worst affected due to the Pakatan Harapan (PH) government’s announcement that it wanted to review mega projects initiated under the former Barisan Nasional (BN) administration.

The projects include the RM55 billion East Coast Rail Line (ECRL), the RM110 billion Kuala Lumpur-Singapore high-speed rail (HSR) and the RM45 billion MRT Line 3.

In another written statement, the finance ministry said The Edge had focused on 10 companies that suffered heavy losses.

“The loss is RM5.36 billion. It must be made known that the total cost of loss changes from one month to another as the gap reduces when the share market prices go up.

“At the same time, if we compare the book value, EPF made profits. The shares were not sold, and due to that, the profits are not stated,” the ministry said.

The second written reply was to Hamzah Zainuddin (BN-Larut) who asked to state the amount of loss suffered by EPF and the impact of the loss.

The ministry replied the drop in the share market was due to the uncertain global market conditions caused by trade tensions between the US with China, Canada, Mexico and with the European countries, among other reasons.

The ministry added that the Pakatan Harapan government are going all out to regain investor confidence by cutting down on corruption and improving competition in the private sector.


steadyaku47 comment :

The powers that be in Pakatan Harapan should direct their inquiries to the then Prime Minister, Najib Razak, who sent the following letter to Ladylaw Securities Pte Ltd on the following subject matter :  “Cadangan Pengurusan Pelaburan Kewanagan Ladylaw Securities Pty Ltd”