EPF Contributors Told Not To Be Deceived By Withdrawal Syndicates

The Employees Provident Fund (EPF) on Wednesday warned its members and other individuals from getting involved in fraudulent activities involving EPF funds.

Contributors should instead deal directly with EPF staff without being charged anything for the service.

EPF's general manager for public relations Nik Affendi Jaafar said the fund was wholly committed to eradicating fraudulent withdrawals which deplete retirement savings and go against the vey core of EPF's objectives.

He issued a stern warning to members and other individuals not to be involved in any irregular activities related to withdrawals and added that the EPF had systems and processes to detect any cases of cheating and attempts to make fraudulent withdrawals.

"The processes not only detect very early on attempts to cheat but also provide guidelines to EPF officers to identify unscrupulous fraudulent attempts by just checking application forms and supporting documents forwarded," he said.

He said under the EPF Act 1991, contributors who committed fraudulent withdrawal, or attempted fraudulent withdrawal, are liable to a maximum jail sentence of three years or a RM100,000 fine or both.

Nik Affendi said 96 court summons had been filed against EPF members from January to December 2009 for their involvement in making fraudulent EPF withdrawals under housing, incapacitation, education and pensionable employees.

"During the same period, 35 EPF members were found guilty by the courts for fraudulent withdrawals while 61 cases were still pending in the courts," he said.

He called upon EPF contributors to report any instances of fraud by contacting the EPF Fraud Hotline at 03-2616 2121 03-2616 2121 during working hours from Monday to Friday.