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EPF – When will it stop being the ATM for the government?

By   /  March 17, 2014  /  89 Comments

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It is a no-brainer that the EPF of Employee’s Providence Fund and the Inland Revenue Board or better known as Income Tax are 2 of the most profitable agencies in the government.

The EPF is one of the most ‘steady’ agencies in the country because those with an income are required to contribute to the fund which can be withdrawn when they reach the retirement age.

Because of this, the EPF is constantly seen as a ‘cash-cow’ and even as the ATM where the government can milk whenever it needs funding.

There are about 12 million EPF contributors in the country and the EPF’s funds have been previously used to as loans to government agencies or GLCs. In fact, there has been a lot of concerns from contributors in 2012 when the amount was said to be up to RM440 billion.

The money was used to bail out GLCs like Renong which runs the then Putra LRT and Malaysia Airlines.

If EPF is the ‘piggy bank’ for the BN government, then it will be a BIG problem because before the missing MH370 aircraft, MAS posted an RM1.17billion for the year ending December 2013. The missing aircraft problem will not do the national flag carrier’s image any favors and a ‘bailout’ will surely be in the cards.

Whatever it takes and whatever happens, the EPF is definitely the people’s money and by the way things are going, the reserves will be used up by the government to help its cronies very soon. No one knows if the RM440 billion loaned to the government 2 years ago have been recovered. If the money is used to bailout MAS then and MAS is continuing to lose money each year, is MAS paying back EPF?

The only constant factor is that EPF will continue to receive funds from the people who are contributors because they are employed. And being the ATM for the government, no one knows where all the billions have gone.

 

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  • Published: 3 years ago on March 17, 2014
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  • Last Modified: March 17, 2014 @ 10:14 pm
  • Filed Under: Grievances

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