[BruceCroucshs]

Tuesday January 25, 2011

Be wary of offers to withdraw EPF savings

PETALING JAYA: Be wary of individuals or syndicates offering fraudulent withdrawal of Employees Provident Fund (EPF) savings regardless of how tempting the offer may be. Those offering such unlawful withdrawals should be reported to the EPF or the police immediately, EPF public relations manager Nik Affendi Jaafar said.

He said 17 members had been convicted and fined, with 12 of them facing a possible jail term of up to six months for their involvement in fraudulent withdrawals during the final quarter of 2010. He reminded members to deal directly with the EPF if they wished to make any applications for withdrawal of funds.

“Our officers are prepared to assist members and more importantly, our services are free,” he said, adding that assistance from third parties was not necessary as the process was simple and straightforward.

Between January and December last year, a total of 74 court summonses were issued against EPF members for their involvement in making fraudulent EPF withdrawals for housing, incapacitation and education.

According to 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Those who return the money withdrawn within six months of the date of conviction can only apply for the same withdrawal after two years from the date the amount is returned. Those who fail to do so will permanently lose the right to make the particular withdrawal.

Nik Affendi said reports could be made directly to the EPF by calling the fraud hotline at 03-2616 2121 on weekdays during office hours.