The biggest fund manager in Malaysia — with funds totaling RM181 billion in 2001 — pays the smallest dividend ever in 38 years, accompanied by a multiple of excuses!

It, the Employees Provident Fund (EPF), is rich enough to buy almost half of the total listed shares in the country — but it can only afford a paltry dividend of five percent — whilst other funds, like Permodalan Nasional Bhd, have been able to chalk higher dividends.

EPF paid a dividend of 8.5 percent during the 1986 economic crisis, 6.7 percent at the height of the economic downturn in 1997, but only five percent based on a year when the economy was "recovering" and economic fundamentals strong.

It is richer than any bank in the country or perhaps even all the banks put together, yet it says it can only pay a dividend equivalent to the fixed deposit rate offered by banks in the country!

EPF says it is committed to the country's progress or what it terms, "the nation's socio- economic development" yet it has been giving its contributors progressively lower annual dividends after 1995.

Its chairperson blames "a higher provision for diminution in the value of equity and increasing doubtful loans" for the abysmal dividend, but remains mum on why the fund has been categorising more investments as "doubtful loans".

In 2001 it had categorised RM1.41 billion of the fund's investments as "doubtful loans" investment which it had no doubts on, and one that was "based on sound financial considerations".

Its chairperson could still declare very proudly: "Every single sen of the rakyat 's money is safe, there is no danger of their money being lost as it is invested in a very prudent manner." ( The Sun , March 13, 2001.) He said it even in spite of the loss of massive amounts of public funds due to its "prudent strategies" in bailing out companies such as Perwaja Terengganu Sdn Bhd (RM600 million loss) and Sistem Transit Aliran Ringan Sdn Bhd (Star).

It gave Star more than RM600 million in loans even when the company was operating at a loss external financial environment for the low five percent dividend. There was not a word on its internal weaknesses, woes and warts which have become so glaringly evident, and for a very long time too.

Its "primary mission", it wants everyone to know, is "to provide retirement benefits for our members" — yet in recent years it has come out with an increasing number of schemes for contributors to withdraw money early instead of strengthening their retirement position.

Its chairperson says "proper accounting is done for all investments after detailed deliberations by a panel who knows the market" — but he forgets to add that the investment panel reports to the finance minister and is not answerable to the EPF Board.

This farce, this fiasco, this folly...only the Employees Provident Fund is privileged to carry on with it.