Lim Kit Siang to write to Finance Minister, Daim Zainuddin, to question the wisdom of EPF investing in 16 share counters which register a total loss of $60 million, especially when many are associated with political leaders


By Parliamentary Opposition Leader, DAP Secretary General and MP for Tanjung, Lim Kit Siang, in Penang on Monday, August 3, 1987.

Lim Kit Siang to write to Finance Minister, Daim Zainuddin, to question the wisdom of EPF investing in 16 share counters which register a total loss of $60 million, especially when many are associated with political leaders.

I will write to the Finance Minister, Daim Zainuddin, to question the wisdom of the Employees’ Provident Fund investing in 16 share counters which, on June 30, 1987, coat a total loss of $60 million to the EPF. The investment in these 16 stocks are even more questionable, as many of them are associated with political or government leaders.

Thirteen of these 16 stocks, and the losses borne by EPF on June 30, 1987 are as follows:
_____________________________________________________________________________________
No of Shares Cost of Market Loss
Purchase Price as
30.6.87
($million) ($million) ($million)
_____________________________________________________________________________________

1. 16,276,750 CYCLE & CARRIAEG LTD 81.97 71.29 10.68
2. 3,000,000 FACB 5.72 3.42 2.30
3. 3,428,000 HUME(M) 13.41 11.79 1.62
4. 2,944,000 MT. PLEASURE 5.10 2.72 2.38
5. 3,013,000 MUMB 7.95 5.15 2.80
6. 921,000 ORIENTAL 3.63 2.67 0.96
7. 2,000,000 SUNGEI WAY 8.01 4.42 3.39
8. 840,000 PEGI 1.79 0.87 0.92
9. 4,078,000 RALEIGH 14.81 10.28 4.53
10. 450,003 SELANGOR PROPERTIES 2.10 1.08 1.02
11. 9,999,999 UNITED PLANTATIONS 50.03 42.00 8.03
12. 7,000,000 LANDMARKS 13.41 6.68 6.73
13. 1,752,000 TAIPING CON. 8.78 7.01 1.77
Total Losses 47.33 million

The other three counters have been suspended, namely:

630,000 FEDERAL CABLES 0.96 million
307,150 GRAND UNITED 0.59 million
5,000,000 SUPREME 10.51 million

When these three counters are added to the first thirteen, the total losses of EFP reaches $60 million.

It is to be noted that the shares like Raleigh, Pegi, Supreme, Grand United, United Plantations are associated with government or political leaders, and it is most improper and unethical that the workers’ monies in the EPF should be used to prop up their business ventures.

The Finance Minister is the Minister responsible in supervising EPF investments in tlhe stocks and shares under the EPF Act, and he has a statutory duty to ensure that the workers’ monies in the EPF are invested with the highest standard of trust, best judgement and interest of the workers.

In my letter to the Finance Minister, Daim Zainuddin, I will also ask for a meeting to discuss with him the whole disturbing question of EPF investments in stocks and shares.

The Auditor-General in the 1985 EPF report criticized the investment of $269 million in 8 companies, four of which are mentioned above, namely C & C, Supreme, United Plantations and Landmarks.