Tapping EPF for housing scheme ‘illogical’

Was Prime Minister Najib Tun Razak lying when he said the national revenue had increased by RM26 billion for 2010-2011?

KOTA KINABALU: Why is the ruling Barisan Nasional (BN) government dipping into the Employees Provident Fund (EPF) to finance a controversial housing scheme when Prime
Minister Najib Tun Razak had announced that the national revenue had grown by RM26 billion for 2010-2011?

This question, posed by Sabah Progressive Party (SAPP), demands an explanation, said its information chief Chong Pit Fah.

He said the federal government must stop abusing the EPF to bail itself out through short-term populist measures.

“A responsible government should always strive to protect the people’s hard-earned savings, instead of abusing it.

“The decision is illogical especially since the prime minister said that the national revenue had grown by RM26 billion for 2010-2011,” Chong said.

He was commenting on the use of RM1.5 billion from the EPF to finance a special housing scheme under the Federal Territories Foundation to enable eligible people to buy houses in Kuala Lumpur.

Najib, who is also Finance Minister, said that the increase in revenue had enabled the government to distribute cash assistances to the people, including the RM2.6 billion for the RM100 school aid, RM200 book voucher for STPM and tertiary students, besides the RM500 assistance provided under the Bantuan Rakyat 1Malaysia (BR1M) for household with earning of least than RM3,000 per month.

Chong questioned why the government could not use the RM26 billion to allocate another RM1.5 billion from the federal coffers for the special housing funding scheme instead of using the pension fund.

“A responsible government and leaders will not abuse the people’s money which they have entrusted in the government to safeguard their future.

“Najib should know this better,” he said, adding that it is all part of the BN government’s strategy to win back Selangor and Kuala Lumpur from the opposition at the expense of EPF contributors.

RM26 billion a lie?
Chong said the move also showed that the federal government had not thought through the special housing funding scheme.

Citing previous records of financial mismanagement, he expressed concern that those involved in approving the use of the EPF money are most likely to be absolved of responsibility should something go wrong.

He said if the government had to tap EPF to finance the housing scheme, then the disclosure by Najib that the national revenue was RM26 billion was a lie.

“Using people’s savings proves that talk of an increase in the national revenue is nothing but a ploy to pull the wool over the people’s eyes… to paint a rosy picture of the government’s finance, when in fact it is in a dire position.

“Najib will say anything that serves his agenda because he knows his government is counting its days in office.

“He knows he can easily pass the burden of blame to the next government,” he said.