Speech by Parliamentary Opposition Leader, DAP Secretary-General and MP for Kota Melak, Lim Kit Siang, at the DAP English Ceramah hald at Min Shin Charitable Association in Malacca on Sunday, 25.5.1986 at 9pm.
Call on Attorney–General, Tan Sri Abu Talib, to explain to the five million EPF contributors why he did not stop the improper and even illegal investment whereby EPF lost %10 million.
The role and function of the Attorney- General, Tan Sri Abu Talib Othman, has recently come under intense scrutiny, because og his controversial and even unjustifiable actions as in trying to disqualify Mr . Justice Hussain Mustapha from hearing the habeas corpus application of 27 detainees in political leaders involved in the illegal demonstrations, bomb blasts. Arson and rioting in Sabah in March causing five deaths and the destrustion of property amounting to some $10 million; and his rejection of the Cabinet stand that there could be further amendments to liberalise the Official Secrets Act.
The Attorney- General, Tan Sri Abu Talib, should be questioned and scrutinised with regard to his role on EPF policy and investment decisions, for he is a member of the EPF Board and the EPF Investment Panel. Frankly, I do not know what is the reason for the AG to sit on the EPF Board as if he is not busy enough.
Last week, I had revealed that in the nine months from June 84 to March 1985, the EPF Investment Panel bought 13 share- counters at under- market prices, and either on the same day or at longest two months later, sold 70 per cent in every instance to a company with a $2 paid up capital, MAKUWASA, at the same price of purchase. If the sale of the share to MAKUWASA had been at market price, EPF wpuld have made $9.9 million. In other words, EPF and the five million EPF contributors lost some $10 million, in a most improper and even illegal transaction.
The Attorney- General, Tan Sri Abu Talib, owe the five million contributors an explanation why he did not stop such improper and even illegal investment decisions by the EPF Panel.
EPF has deviated from its original tripartite concept and should be re-organiased to allow worker representatives to play full and effective role.
The EPF has deviated from its original tripartite concept where workers, employers and the government jointly ensure the best provisions to provide workers for a ‘rainly day’ after retirement. In forgoing profits which workers’ EPF contributors, whether in terms of higher interest for EPF contributors or various schemes to benefit workers, as advance for house purchase, etc.
I understand that the Minister of Finance will be appointing a new EPF Board and new EPF Investment Panel in these few days. I call on the Finance Minister, Daim Zainuddin, to fully restore, both in spirit and practice the tripartite concept of the EPF, where workers’ representatives should play a full and leading roloe in all EPF decision-making, and not as at present, excluded from important decisions, such as the EPF Investment Panel.
The Finance Minister should realise that the EPF contributors, which is over $20 million, are not government funds, but the workers’ money, investment of EPF funds.