Saturday, March 10, 2012

Non Malays owned most of $400 billion EPF money.

Ever wonder why suddenly, Najib is so generous to the ordinary citizens? The Cheras toll was abolished and the Kajang toll was halved?Before PLUS was flogged to EPF, the govt was paying astronomical sums to toll owners for making concessions like not raising toll rates.Each time when toll increase was deferred , the govt had to pay compensation in the hundreds of millions to PLUS according to the lop sided toll concession contracts.

Now that the PLUS owners are EPF, Najib seems to be more generous then when PLUS was in UMNO's hands. So far I have not heard any outcry from EPF why no compensation was forthcoming to EPF coffers?After all the losers are the EPF contributors and by now they are already quite immuned to being abused financially.

Remember EPF's investment in MBSB building funds? The woman in charge then lost nearly one billion in her foray in the building loans and housing development.. I wonder till today whether the lost investment has been recovered.

Then what about EPF's forced acquisition of the RHB bank?The purpose of the acquisition was to prevent some of the Directors being charged for committing CBT on the bank's money.Before the EPF's acquisition it was a foregone conclusion that some of the Directors would be charged for the massive losses sustained by the bank due to fraud and negligence.But after EPF's forced acquisition all the charges were suddenly withdrawn and the Directors were never charged for any misdemeanour.EPF, again was left to carry over the losses.

The latest foray by EPF of course is the loan of $1.2 billion to house buyers whose credit was rejected by the banks. The purpose of the whole exercise was to try and secure the votes of the 22,000 potential house buyers in Selangor. After alot of protest from the public the govt finally conceded that the loan would be channeled to the govt via a special purpose vehicle.In this case at least the loan would be guaranteed by the govt but if any losss occur the result would also means that taxpayers money will be lost to bail out the fail venture.

Why is EPF the favourite punching bag of the govt? First of all it is because it is a cash cow. With $400 over billion EPF is seating on a pile of cash waiting to be taken. After all EPF is operating a ponzi system (like the one operated by Pak man telo) where it is collecting cash to pay for whatever commitments that are due. In short it is operating the illegal pyramid system where its daily colllection of cash is used to finance its obligations.If the collection were to stop, the whole structure collapse and EPF would not be able to meet its financial comitments.

The surprising thing which escape most people's attention including the opposition member of Parliament is that 90% of the $400 billion EPF money belongs to the non malays.Since almost 100% of the malays are in the civil service they dont contribute to the EPF scheme. The private sectors are mostly occupied by the non malays and it is mandatory for them to contribute to the EPF. So by sheer logic, EPF pile of $400 billion belongs virtually to the non malays. In view of this it becomes clear that past and present leaders dont really give two hoots what happens to the EPF money.