Trade unions will appoint those with ‘brains’ to oversight committee

Trade unions say they will appoint those with requisite knowledge to the oversight committee to be set to supervise stock market investments through Employees Provident Fund (EPF) funds.

At the discussions with the Central Bank (CB) last week on EPF's stock market investments, trade unions had wanted a place in the oversight committee, so they too can watch the process. "We are no economists. We understand that this is a specialist area. So we will find someone with that kind of knowledge for the committee, if we are invited," Leslie Devendra, President Sri Lanka Nidahas Sevaka Sangamaya told the Business Times. He stressed the unions want absolute transparency and a voice in what this committee intends to do.

The discussion saw the CB Governor Dr. Indrajit Coomaraswamy acknowledging unions’ call for a place at the intended committee, stressing that CB will peruse the idea. The Governor promised to provide weekly updates of the return on investment once EPF

funds are invested. Dr. Coomaraswamy also assured that investments will be made independently and not governed by any government considerations.

During 2010-2013, the EPF drew disapproval after investments in many loss- making companies in the stock market during the wicked pump-anddump trades. Many earlier questioned as to the ‘delay’ in bringing culprits to justice but now that has also simmered empowering the fraudsters. This, Mr. Devendra added is what perturbs the unions.

Agreed Palitha Athukorala, another trade union leader, saying that this unpleasant experience induces caution. “Once bitten, twice shy. It was a terrible experience at the time and still we are awaiting justice," he said noting that the challenge before them is that the ordinary man doesn't 'trust' anymore. He said that union members and the public at large can't rely on (any) government to safeguard their money. "Not that we don't want a bigger return, but we will rather be with a smaller one in the current context." However, he was appreciative of the meeting and added that Dr. Coomaraswamy gave a patient hearing to them and listened to their concerns.

A presentation at the meeting explained to the unions that the new investment mandate was approved by the Monetary Board ( MB). The EPF Department has started supervision and risk management of EPF investments. This office has limited access, it was said noting that only permitted officers can patronise the premises. All tele conversations at the office and related areas will be recorded. Also when transacting over the phone, only those that can be recorded can be used. The presentation said that CCTV (closed-circuit television) will be fixed at t he Money Manag ement Department. Mobile phone usage during money management is completely prohibited. It was said that the EPF can only invest, according to an index and will be long term. Both the investment and the oversight committee should direct the investment procedure that should be followed by the EPF and the MB has to approve this. Also the MB has to sanction which firms the agency should invest in. Mr. Devendra added that they expect to hold another discussion with the CB soon.