The staggering RM2 billion lent out by the Employees Provident Fund (EPF) to the cash-strapped National Higher Education Fund Corporation (PTPTN) in 2003 adds to a worryingly long list of questionable investments by EPF.

The EPF, it seems, is being made a 'lender of last resort' to bail out all manner of struggling agencies and corporate entities, regardless of the high risk of eventual default. Is it any wonder, then, that loan write-offs and provisions for unrealised losses have now become a familiar entry in the EPF accounts, contributing to the disappointing dividends declared in recent years?

It cannot be stressed enough that the funds involved here are the hard-earned retirement savings of the nation's workers. For many of them, EPF savings may be the main, if not sole, source of financial sustenance in their old age.

It would thus be a massive injustice if these funds are frittered away on dubious investments by EPF asset managers who really ought to know better.

Admittedly, the PTPTN constitutes a worthy recipient of financial assistance, given its mandate of supporting needy students. However, this financial assistance should come not from a retirement scheme like the EPF but from the government itself, which must not abdicate its responsibility to provide for the educational needs of the country's youth.

Otherwise, if the funds were to be drawn from workers' nest egg, it could end up being an emblematic case of robbing Peter to pay Paul.

The writer is the president of the Consumers Association of Penang.