By Parliamentary Opposition Leader, DAP Secretary-General and MP for Kota Melaka, Liu Kit Siang, in Malacca on Thursday, 4.7.1986:
DAP lawyers to meet in Penang tonight to decide on legal suit against EPF illegal and improper use of EPF funds for speculative share trading losses.
DAP lawyers will meet in Penang tonight to decide on the legal suit against the EPF for illegal and improper use of EPF funds for speculative share trading and losses, breach of trust and abuse of power.
Monday’s explanation by EPF chairman, Tan Sri Zain Azraai, about the EPF’s speculative share operations and in particular, its mysterious relationship with the $2 government company, MAKUWASA SECURITIES SDN.BHD where it lost $10 million of profit which should have accrued
to the EPF funds, has raised two important questions:
Firstly, the propriety and accountability the management of the $2.5 billion of EPF contributors’ funds;
Secondly, the propriety and accountability in the use if public funds in the government share operations, as in government companies like MAKUWASA SECURITIES SDN.BHD.
According to Tan Sri Zain Azraai, who is also the new Secretary General of the Ministry of Finance, since 1984, the government had been using public funds to dabble in the stock market.
Why wasn’t Parliament, and the people of Malaysia, informed that the government has set up government companies to play with shares? Would the government had admitted that it had set up government companies epecifically to dabble in shares if not for the DAP’s expose of the
According to the Registry of Companies, there are five MAKUWASA companies, all registered with $2 paid-up capital, namely:
MAKUWASA Securities Sdn.Bhd.
MAKUWASA Development (Sabah) Sdn.Bhd.
MAKUWASA Jaya Development Sdn.Bhd.
MAKUWASA Palm Oil Sdn.Bhd.
MAKUWASA Plantation (Sabah) Sdn.Bhd.
All these five MAKUWASA companies have the same registered address, namely No/56 Jalan U Thant, off Jalan Tun Razak, Kuala Lumpur and the same two director-shareholder: Bhupatrai M.Premji of No.4, Jalan SS 22/7 Damansara Utama, Petaling Jaya and Mohd.Alkof bin Md.Kahar, 19, Jalan 1/6 Taman Tun Abdul Razak.
Firstly, why is it necessary for the Government to incorporate five MAKUWASA companies.
Secondly, why was the name MAKUWASA used, which made used of EPF’s short form, KUWASA, giving the impression that it is a EPF subsidiary company instead.
Thirdly, who are the two shareholder-directors, Bhupatrai M.Premji and Mohd.Alkof bin Mohd.Kahar, who apparently used their private residence address instead of their official address, if they are government appointees in their official capacity.