Najib running out of money? RM1.5bil taken from EPF to fund Nong Chik's housing scheme

By Maclean Patrick, Malaysia Chronicle

At a time when other governments are looking into austerity programs to cushion themselves from a global recession, Malaysia is spending its retirement fund on ill-guided projects. And when a government of the day - the UMNO-BN - unceremoniously plays around with money its citizens have toiled hard for and set apart for their retirement needs, one thing is clear - nothing is safe anymore.

The use of RM1.5bil from the Employees Provident Fund in a scheme offering home loans to those who cannot qualify for bank financing will not be detrimental to EPF contributors, claimed Prime Minister Najib Razak. FT minister Raja Nong Chik gave further guarantee that the government would safeguard EPF’s interests, saying the deal ensured secure financial returns for the EPF.

When so hush-hush then

Yet, the Najib government did not consult the EPF board of employee representatives when it decided to use the RM1.5 billion to give the home loans to unqualified buyers, union officials themselves reported. The EPF board of employee representatives comprise Malaysian Trade Unions Congress (MTUC) president Mohd Khalid Atan, National Union of Teaching Profession (NUTP) secretary-general Loke Yim Pheng, Sarawak Bank Employees Union (SBEU) president Hadiah Leen and Sabah Commercial Employees Union (SCEU) general secretary Azlin Awang Chee. All these officials were left in the dark as to the EPF's plans in financing 20,000 homes in the Kuala Lumpur city area.

With no consultation or even a discussion with their stakeholders, the EPF's management in collaboration with the Najib administration is robbing the contributions of hard-working Malaysians to basically finance something the government could do with its own funds. And for the purpose of giving Raja Nong Chik a filip when he contests in the 13th general election. Nong Chik will get to boast, while Malaysian workers fret over whether their loan will turn into a bad debt.

EPF is not UMNO's piggy-bank

Why the need to rob workers of their retirement money? And does not the BN government know that our EPF money is not a piggy bank they can simply dip their hands into just to finance their political schemes?

Has Najib taken into account the sentiments of the workers in Sabah and Sarawak who also contribute to the EPF? After all, the RM1.5 billion will be used to finance a “charity program” faraway in the nation's capital, when East Malaysians are desperately in need of basic infrastructure - as fundamental as clean water and electricity.

And in robbing EPF to fund 20,000 houses in Kuala Lumpur, Najib has ignored the 4.92 million East Malaysians who are also citizens of Malaysia. This deal must surely hurt Malaysians from Sabah and Sarawak, it is a huge snub from the federal government. Once again, they are left at the mercy of tyrant chief ministers Musa Aman and Taib Mahmud because they never seem to appear on the radar of the UMNO-led federal government.

Rich in resources, yet Sabahans and Sarawakians are forced to remain poor and reliant on clumsy home-improvisations while fellow citizens in Peninsula Malaysia get the best deal. Additing salt to the fund is that a lot of Malaysia's prosperity is funded on the resources of Sabah and Sarawak.

Najib's weakest of weak explanations

Najib’s own explanation that the EPF money was to “sponsor” the housing scheme shows his own apathy towards the plight of the East Malaysians.

“The scheme does not undermine the interests of the EPF because the value of the housing units in the market is far higher than the purchase price. If a buyer is unable to or does not repay the loan, the unit can be sold for a higher price. We always safeguard the interests of the EPF,” said the prime minister.

According to Najib, the amount taken was also not substantial compared to the EPF’s funds. The prime minister made it seem it was all a business deal and nothing more. He was right and wrong. It is a business deal between the government and the EPF. But the EPF is not on its own, the funds it manages belong to the workers and if decisions are not taken at arms' length, this shows how corrupt Malaysia has become.

And it does not matter if it is RM1.5 bil or RM1-50, system checks should have been put in place a long time ago ensure that such 'funny' deals are taboo and can never be transacted, otherwise the politicians and the EPF directors sanctioning the deals should all be sacked!

The Najib administration is running out of money

Very important to note that by dipping their hands into the EPF cookie jar, the Najib administration is also saying that they do not have the money to run this “charity” program. It is really scary when the federal government can't support such a relatively miniscule project on its own. Bankruptcy must be closer than we think, surely earlier than 2019, no matter what Idris Jala, minister in the PM's Department, says.

The country’s federal debt level reached RM456 billion at the end of 2011, which is a marked 88.4 per cent increase from the RM242 billion in 2006. The debt level will further increase, once projects like the West Coast Expressways, valued at RM7.07 billion, or the Klang Valley MRT project kicks in.

And 'small' though the RM1.5bil KL housing scheme may be to Najib, can he guarantee returns when he dare not even chase back for a RM250 million soft loan granted to the family of Women's minister Shahrizat Jaili to manage in the NFC scanda?