KUALA LUMPUR, Aug 3 — Eight members (contributors) to the Employees Provident Fund (EPF) were found guilty by the courts for making fraudulent EPF withdrawals between April and June 2009. The strict action taken against these members was the result of EPF’s continuous effort to safeguard members’ retirement savings.
“The EPF had earlier this year launched the Anti-Fraud and Whistleblowing Policies to heighten the prevention and detection of wrongdoings. The effort, coupled with a stringent approach taken by the EPF in handling cases of fraud, has resulted in a number of fraudulent withdrawals and attempted fraudulent withdrawals being uncovered,” said Encik Nik Affendi Jaafar, EPF General Manager for Public Relations.
All eight members were sentenced and fined by the courts with two of them facing possible jail terms should they fail to pay the fines.
As at June 30, 2009, a total of 65 court summons have been filed for fraudulent withdrawals. These members, including the eight who have already been convicted, were charged under Section 59 of the EPF Act 1991.
Under the Act, members who have been found guilty of fraudulent withdrawal, or attempted fraudulent withdrawal, are liable to a maximum jail sentence of three years or a RM10,000 fine, or both. Once convicted, members who return the amount withdrawn within six months from the conviction date may only be allowed to apply for the same withdrawal after two years from the date the amount is returned. Those who fail to return the amount or return the amount after sixth months from the conviction date will forever lose their right to make that particular withdrawal.
“The EPF is aware of the fact that some members do not operate on their own but are coached by third parties or syndicates who target members who appear desperate and in dire need of money. Members are advised not to fall prey to these malicious ploys, as their main intention is not to help the members but to take advantage of their vulnerability,” said Encik Nik Affendi.
In the past, several scams involving education, health and housing withdrawals came to light whereby members had submitted forged documents to facilitate the approval of these withdrawals. These offenders were subsequently charged and sentenced by the courts.
“We want our members to know that we have zero-tolerance when it comes to fraud. As the custodian of members’ savings, the EPF will always strive to ensure that their savings remain protected for their retirement wellbeing,” concludes Encik Nik Affendi. – Bernama
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