EPF nearly conned of RM15m over defunct company

Sources: http://www.thestar.com.my/news/story.asp?file=/2007/1/4/nation/16455252&sec=nation

Thursday January 04, 2007.

EPF nearly conned of RM15m over defunct company

KUALA LUMPUR: The Employees Provident Fund (EPF) almost paid RM15mil for a wound-up company worth less than RM700,000.

Fortunately, certain individuals tipped off EPF officials, prompting them to halt the deal and conduct an in-depth due diligence and investigation into the matter.

However, the EPF had already paid a refundable 10% or RM1.5mil deposit.

It is learnt that a man had approached the EPF investment division and offered to sell an 80% stake in the company, which had entered into a lucrative joint venture with an American company.

The American company is the largest distributor of liquid products to several fast food outlets worldwide.

The man managed to convince EPF officials of guaranteed profits for 2005, 2006, and 2007.

Unsuspecting EPF officials, impressed with the figures and guaranteed returns for the next few years, then signed a term sheet for the proposed investment and paid the RM1.5mil.

Sources said the company had been ordered to be wound up by the courts by then but the man, who had also been forced to resign as the managing director, still went ahead with his proposal to the EPF.

They said the man was also not only no longer the corporate representative of the company but also only owned 30% equity in the company.

A local bank had valued the total shares of the company at about RM700,000 while EPF had been duped to pay almost 28 times more than the valued amount.

Several directors of the company, who were alerted about the sale of their company, wrote to the EPF and tipped them off about the scam

Wow… almost dump RM15M into the sea… what is happening with those EPF officials who make the deal? They never investigate or studies before making decision to invest?? waulau arr… :frowning: :frowning: :evil: :evil:

Yeah lor the EPF Official not so stupid ehhh ??? damn all those money come from us lehhh if they really dump in our money sure is bye bye…
damn look like the EPF Offical are lack of some intelligence…

geez

freakin air holes anyway…

what can i say… bunch of jokers managing our blood and sweat money.

= deleted with apology =

walao…yeah, u r rite zTILaso, by the time we retired, EPF will close shop…
ehmm, if it is MONEY, people will tend to do anything to get it! see how powerful that MONEY is to people nowadays… :?

Likely possibility…the officers involved may have negotiated for a 'Cut"…

Won’t they do their home work before deal is done?. :? …what surprised me was 1.5million deposit was already paid. :x ( some of us cannot dream of that amt in our lifetime).

But one intersting thing about this issue was,atleast EPF has admitted its mistake and the public know about it…

But what me may not know - there could be lot of these kind of foolish decisions made not revealed to public.

I’m glad atleast I have seen “the tip of the iceberg”

EPF had no choice but to admit the mistake because (my opinion) :

  1. “Certain individuals” informed them about it. If EPF had gone ahead with the purchase, eventhough already been warned about the company. These individuals will surely report to the people.

  2. The company already got court matters, so it is already in the court books that this company is in trouble, if EPF still gone ahead to purchase it, sooner or later, the Public will find out.

The EPF wants to show good faith? Should sack those people who was involve with the deal, who agreed to pay the RM 1.5m. Or demote them with pay cut.

What is EPF doing with our money? Like the bail outs of companies during the 1997 crisis?

Today star…

http://thestar.com.my/news/story.asp?fi … sec=nation.

EPF trying to cover their back.