THE Employees Provident Fund should meet the press to explain allegations by whistle-blower website Sarawak Report that it is funding the next elections instead of denying them, the National Patriots Association (Patriot) said today.

EPF, police and Bank Negara should all explain allegation that the retirement fund transferred money to another entity in the guise of projects to fund election expenses, said Patriots president Brig-Gen (rtd) Mohamed Arshad Raji.

“Patriots commends EPF for coming out quickly to deny some of the allegations made by Sarawak Report, especially those referring to the fund. 

“However, reassurance from EPF through a statement refuting SR’s allegations is not good enough. 

“In view of the severity and an enormous sum of money involved as alleged, EPF needs to call a media conference and show that the bonds in question are still in its possession,” Arshad said in a statement.

In a February 28 posting, Sarawak Report said it sighted documents revealing that a group of operatives had allegedly been siphoning off funds from agencies linked to the Malaysian government, such as EPF, to fund election expenses.

The blog said EPF transferred public bonds worth RM10.6 billion to Limage Holdings SA, which was supposedly owned by Hungarian Gyorgy Matrai.

Yesterday, EPF said it never had dealings with Limage Holdings, Limage Southwest Holdings, the individual known as “Mr Matrai” nor any party as stated by Sarawak Report.

It also said no funds or bonds of any kind were transferred to the companies, parties or persons mentioned. It said such schemes would not pass EPF’s “strong and robust governance framework”.

But EPF said it is aware of two fake letters in 2015 and 2016 related to the mentioned companies and persons, and police reports had been lodged.

A police report was lodged on October 28, 2015 over a fake letter of indemnity concerning an agreement between EPF and Limage Holding SA. Another was lodged on February 26, 2016 over a fake letter of award for developing and constructing an integrated medical city project.

A report was also lodged on January 23 last year by EPF, which stated that the agency had no knowledge or relationship with Ladylaw Securities Pte Ltd and Nik Manikis. 

In view of the police reports lodged, Arshad said the police must inform the public on the latest development of the investigations. 

“Bank Negara has to make a statement regarding the status of the bonds in question.

“The central bank should also address the allegation of a transfer of large amount of funds to a RHB Bank dollar account of a private company, revealing what is allowed to within the limits of the law,” he said.

Earlier this week, Sarawak Report also implicated the involvement of the RHB banking group in an alleged financial scandal involving EPF.

Citing sources, the site claimed US$1.6 billion (RM6.4 billion) had been transferred from EPF into a Kuala Lumpur RHB dollar account of a little-known entity called TJJR Diversified (M) Sdn Bhd in January, which was owned by a woman supposedly coordinating a hospital project supported by EPF and the Health Ministry.

RHB has also denied the allegation, calling it baseless and untrue, The Edge Markets reported yesterday.

Arshad said allegations by Sarawak Report remain unsubstantiated for now.

However, following allegations of billions invested in “investment vehicles owned by fraudsters and the kickbacks involved”, it should ring alarm bells considering what Malaysia had gone through since the dark episodes involving the Bumiputra Malaysia Finance (BMF) and 1Malaysia Development Bhd (1MDB) scandals, he said.

“What can be concluded as of now is that it has brought Malaysia to international shame.

“Those civil servants in the highest echelon, who had taken an oath of responsibility and allegiance when they assumed office, had abdicated their responsibilities to provide checks and balance, and failed to speak up to stem the rot and decadence in the abuse of public funds.”

Arshad said Patriots supported the call by Business Ethics Institute Malaysia (BEIM) for ethical business conduct in the private sector, and more so in the public sector. – March 2, 2018.