EPF IMPLEMENTS ANTI-FRAUD AND WHISTLEBLOWING POLICIES

KUALA LUMPUR, April 16 (Bernama) -- The Employees Provident Fund (EPF) has
implemented anti-fraud and whistleblowing policies simultaneously as part of its
efforts to combat fraud and wrongdoings.

The EPF is believed to be the first government agency in the country to have
implemented both the anti-fraud and whistleblowing policies.

"This demonstrates our seriousness in tackling fraudulent activities," said
EPF head of public relations Nik Affendi Jaafar in a statement Thursday.

The policies empowered EPF staff and management to better uncover instances
of fraud and deal with potential wrongdoings such as in cases involving
fraudulent withdrawals, he said.

In relation to this, between January to March 2009, nine EPF members have
been found guilty by the courts for their involvement in making fraudulent EPF
housing withdrawals.

The offenders were sentenced and fined between RM350 and RM4,500, with six
of them facing possible jail terms of up to seven months should they fail to pay
the fines.

"The legal action taken against them forms part of the EPF's ongoing efforts
to stamp out fraudulent activities," Nik Affendi said.

"We want to give the message that the EPF has zero tolerance towards any
kind of fraud in line with the policies in place," he said.

To date, a total of 43 court summons have been filed for fraudulent
withdrawals. These members, including the nine already sentenced, have been
charged under Section 59 of the EPF Act 1991.

Under the EPF Act 1991, those found guilty of fraudulent withdrawal, or
attempted fraudulent withdrawal, are liable to a maximum jail sentence of three
years or a RM10,000 fine, or both.

Those convicted members who return the amount of money withdrawn within six
months from the conviction date may only be allowed to apply for the same
withdrawal after two years from the date the amount is returned. Those who fail
to do so will forever lose their right to make that particular withdrawal.

"Despite the current economic situation, members are reminded not to get
involved with any syndicates that might tempt them to commit fraudulent
withdrawals and to report them to the authorities so that necessary actions can
be taken to avoid others from falling prey," Nik Affendi said.

"If members wish to apply for EPF withdrawals, they are advised to deal
directly with the EPF, which does not charge for its services, and not to seek
assistance from any third parties," he said.

The EPF has also introduced its anti-fraud hotline as a channel for members
to report any cases of fraud. To make a report, members now only need to call
during working hours from Monday to Friday.

"We urge members to give their support in our war against fraud and to come
forward with information relating to fraudulent cases so as to assist us in
protecting members' EPF savings," Nik Affendi said.

The EPF is Malaysia's premier pension fund, providing basic financial
security for retirement. (US$1=RM3.61)
-- BERNAMA