Opposition slammed over malicious EPF claim

KUALA LUMPUR: Datuk Seri Abdul Rahman Dahlan has slammed Opposition leaders for claiming that the Employees Provident Fund (EPF) is in financial crisis.

The Barisan Nasional strategic communications director said in a statement that the 5.7% dividend declared by EPF – although lower than the 6.4% paid in 2015 – reflected its healthy financial status.

“EPF is not in any financial difficulty. If it was in financial difficulties or had made a loss, it would not be paying any dividend at all, what more a healthy 5.7% dividend for 2016,” he said.

Abdul Rahman, who is also Minister in the Prime Minister’s Department, was responding to a joint statement by PKR’s Kelana Jaya MP Wong Chen, DAP’s Seputeh MP Teresa Kok and Parti Amanah Negara’s Dr Dzulkefly Ahmad.

He said he was appalled at the three senior politicians for claiming that the “financial distress” was caused by EPF’s investment in 1Malaysia Development Bhd (1MDB).

He said as answered in Parliament in May 2015, EPF’s exposure to 1MDB is RM200mil and not RM1.72bil as claimed by the three leaders, and the investment is in a government-guaranteed 30-year sukuk issued in 2009.

“To clarify further, EPF also has exposure of RM1.5bil in bonds for two Independent Power Producer (IPP) plants – Panglima Power Sdn Bhd and Jimah Energy Ventures Sdn Bhd.

These bonds were subscribed by EPF in 2003 and 2005 respectively before 1MDB was founded and are backed by a healthy cashflow.

“These two IPPs were previously acquired by 1MDB but have since been sold in a deal completed in March 2016, which was part of 1MDB’s rationalisation exercise,” he said.

Abdul Rahman explained that EPF had not lost a single sen in all three bonds as they were fixed income bonds that pay fixed coupons and had never been in default.

“Additionally, EPF’s remaining RM200mil exposure to 1MDB’s government-guaranteed sukuk is just 0.027% of its total assets of RM731bil.

“Therefore, for the three Opposition leaders to claim that EPF is in financial difficulties or that 1MDB had caused losses to EPF is wrong and malicious,” he said.

Abdul Rahman said EPF’s 5.7% dividend was commendable given the current global and regional economic situation.

From 2000 to 2008, EPF had recorded an average annual dividend rate of 4.99%, which increased to 6.1% from 2009 to 2016, he added.