Who would pay RM15 million for a company worths only RM700,000?


Sinchew Jit Poh was quoting a report carried by The Star today, that EPF has decided to pay RM15 million to purchase a company worths only RM700,000 in market value. EPF has paid 10% i.e. RM1.5 million as deposit. No one from EPF has responded to the query put forward by the media.

What has gone wrong with the EPF ? What’s going to happen to our hard-earned savings? Would the Finance Minister AAB or the Second Finance Minister Nor Mohd Yakcop come forward to tell us the truth?

The above news reminds me about the police report I made against the then MCA President Ling Liong Sik. Ling was the Transport Minister at that time. He has allegedly paid RM1 billion to purchase 1,000 acres of swampy land in Westport. The price he paid was said to be 40% higher than the market value. In another words, he has overpaid with Malaysian taxpayers’ money to a tune of RM400 million! The police report was made in 2004 but I have yet to receive any report from the police.


sinchew updated:2007-01-04 20:37:28 MYT











此外,公積金局發言人受詢時不願針對此事置評。 (星洲日報‧2007/01/04)

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.  
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