Thursday, June 11, 2015

EPF has pumped RM80b into GLCs, thus far

10:33AM Jun 11, 2015
Malaysiakini
The Employees Provident Fund (EPF) has pumped in a total of RM80 billion into government-linked companies (GLCs) as of March 2015, said the Finance Ministry.

Out of this total, a huge part of the fund in the amount of RM25.29 billion was invested in the controversial Pembinaan PFI Sdn Bhd.

"EPF's financial exposure in the GLCs was in the form of fix-rate loan and the subscription of bond or sukuk where part of it was based on government's guarantee, asset mortgage and bank guarantees," the ministry told Khalid Samad (PAS-Shah Alam) in a parliamentary written reply yesterday.

The ministry's reply stated that the EPF's portfolio exposure in GLCs totals RM79.99 billion as of March 2015.

The PAS MP asked the ministry to list out how much the country's biggest retirement fund have spent on GLCs, particularly on Pembinaan PFI, 1MDB and Felda Global Ventures Bhd (FGV).

Investment in 1MDB limited to RM200m

The ministry acknowledged that EPF's investment in 1MDB was limited to RM200 million, which is guaranteed by the government.

"Meanwhile, EPF's exposure in Pembinaan PFI totalled RM25.29 billion, which is guaranteed by a leaseback from the government," it said.

Pembinaan PFI is a finance ministry-owned company which had accumulated liabilities of RM27.9 billion at the end of 2012.

The ministry however denied that EPF had financed FGV.

In order to protect and add value to members' deposits, as well as to get stable returns, more than 50 percent of the fund's investments are in fixed income instruments such Malaysian government securities, mutual bonds, and domestic and global bonds or loans, it added.

~ Malaysiakini

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