‘Why should Valuecap borrow from EPF?’
Malaysiakini
MTUC condemns the government’s move to bail out Valuecap to support the local stock market using RM5 billion from EPF, as the provident fund is the custodian of the workers’ money and not some sort of ‘automated teller machine’ for the government.
If at all the EPF were to lend its money to the government, it has to be under the condition that there be transparency and accountability in the activities for which the money has been purposed.
We want to know who is doing what with the money that belongs to the workers. This is the hard-earned money of the workers, their retirement plan. How is this bailout plan going to benefit the workers?
We also question the reason for this bailout. If the economic fundamentals in Malaysia are strong and reserves sufficient as has been stated several times by the government, then why is there a need to offer so much money to the GLCs?
Second Finance Minister Nor Mohamed Yakcop should prove how the EPF would profit from this loan. Bernama had reported that Nor had given the assurance that the loan given out by EPF would reap profits for the fund judging from Valuecap’s past performance.
But where is the paperwork and calculations to show that this move will benefit the EPF? MTUC is concerned that the loan might be mismanaged or misused and this, in turn, would affect the returns for the contributors.
Mere assurances are not enough. We want to proof that this RM5 billion will not go down the drain.
(The writer is president, MTUC).

