Monday, April 7, 2014

‘EPF must explain risk factor in foreign investments’

 | April 7, 2014
PAC will call five ministries and the EPF explain various issues of public interest.
nur jazlanKUALA LUMPUR: The Public Accounts Committee (PAC) wants the Employees Provident Fund (EPF) to explain the risk factor in its foreign property investment and management.
PAC chairman Nur Jazlan Mohamed said although EPF had over the years been getting good returns from foreign investments, a proactive approach had to be taken to examine its strategy.
He said EPF had invested in RM6.6 billion in Britain, Australia, Singapore and Europe which saw 10% returns yearly.
Nur Jazlan said the PAC would like to know the risks involved in investing in foreign property.
“It is part of a process to plug the loopholes and avoid being caught in a difficult situation in the future,” he told reporters after receiving the Auditor General’s report year 2013 Part 1 today.
Nur Jazlan said his committee was satisfied with the overall report but was serious in addressing the issues concerning the public.
He said PAC would also be calling four ministries to explain certain discrepancies.
The five are Agriculture & Agro-based Industries Ministry, Education Ministry, Health Ministry, Home Ministry and Works Ministry.
Nur Jazlan said the Agriculture & Agro-based Industries Ministry would be called to explain the delay in completing the RM343.55 million Pedu Dam project.
He said the ministry would also be asked to explain the selection of contractor who had no proper experience in building dams.
The Education Ministry will be called to explain the Sultan Azlan Shah campus construction which failed to comply with specifications and failure to obtain a certificate of fitness.
Nur Jazlan said the allocation for university researchers would also be examined because of reports on wastage of funds and failing to produce full research papers.
He said the RM314 million allocation, which would be increased to RM1 billion, to fund research and help lecturers gain promotion and experience was poorly used.
He added that the exercise was being carried out to better monitor the use of the allocated funds for researchers.
The Health Ministry will be called in to explain their asset management, procuring process and medical equipment management in government hospitals.
The PAC will also question the Home Ministry on the procurement exercise for Rela uniforms costing RM17 million.
The Works Ministry will asked explain the two-year delay in completing the East Coast Highway project with the cost going up from RM900 million to RM1.9 billion.
Nur Jazlan also confirmed that AirAsia would be meeting PAC on April 28 to explain their refusal to shift to KLIA2 on the date specified by Malaysia Airports Bhd.
~ Free Malaysia Today

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