The EPF made headlines when it nearly and unwittingly paid out RM 15 million to a conman for the acquisition of his company. The incident has once again affirmed the nation's perception that the public sector has a great deal of improvement to make. And from what I have come to learn, there are several concerns I have over EPF's questionable methodology.
Firstly, what are the methods employed when valuing a prospective company? It seems to me that there were none as it was preposterous to discover a proposed amount of RM 15 million was to be paid for a company valued at less than RM 700,000.
Secondly, what are the methods of evaluation and acquisition of companies? Why did the EPF unwisely incur risks by paying out a RM 1.5 million deposit prior to verifying basic facts like the real value? The EPF officials in question, who were merely impressed by profit forecasts presented by the conman, were clearly not sufficiently prudent, nor experienced.
Lastly, how does the EPF assess credentials and credibility? Contrary to the conman's claim of owning a 80 percent stack of the company, he is no longer a corporate representative and owns only 30 percent equity in the company. Did the EPF officials not confirm his identity, corporate status and ownership?
The occurrence clearly reflects the incompetency of the public sector which requires a major organizational revamp by the government. Immediate action is needed as the implications could further dampen the nation's confident towards the EPF and ultimately, the government. Such a high price to pay for a lesson. I am vicariously heartbroken for taxpayers' who have slaved their entire lives only to have their hard earned money lost by the EPF.
Firstly, what are the methods employed when valuing a prospective company? It seems to me that there were none as it was preposterous to discover a proposed amount of RM 15 million was to be paid for a company valued at less than RM 700,000.
Secondly, what are the methods of evaluation and acquisition of companies? Why did the EPF unwisely incur risks by paying out a RM 1.5 million deposit prior to verifying basic facts like the real value? The EPF officials in question, who were merely impressed by profit forecasts presented by the conman, were clearly not sufficiently prudent, nor experienced.
Lastly, how does the EPF assess credentials and credibility? Contrary to the conman's claim of owning a 80 percent stack of the company, he is no longer a corporate representative and owns only 30 percent equity in the company. Did the EPF officials not confirm his identity, corporate status and ownership?
The occurrence clearly reflects the incompetency of the public sector which requires a major organizational revamp by the government. Immediate action is needed as the implications could further dampen the nation's confident towards the EPF and ultimately, the government. Such a high price to pay for a lesson. I am vicariously heartbroken for taxpayers' who have slaved their entire lives only to have their hard earned money lost by the EPF.