It seems that the EPF has not stopped the practice of being the lender of last resort for companies that are in financial difficulties; or rather helping the shareholders of such companies with the use of public funds.
According to this malaysiakini report it has to reduce its shareholdings from 82% to 35% by the first quarter of 2008 to meet Bank Negara rules.
EPF members should be asking why the EPF bought more than the 35% limit and now has to sell off more than 47% perhaps at a discount?
The EPF regulations should be more strictly enforced so that fund managers are not permitted to engage in such speculative activities.
And members should take note of this deal so that no monies are lost in the transactions.
It is quite easy to end up in a situation similar to the Mv Augusta scenario.