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EPF lost over one billion rupees on investments in 2013: PAC
In envestment of funds from the Employees Provident Fund – monies meant to provide social security to workers – caused a loss of over one billion rupees, the Public Accounts Committee (PAC) has revealed. The financial watchdog of Parliament noted that the man responsible for those investments, the former Governor of the Central Bank has given different explanations.
The loss on investment was recorded in 2013. The Central Bank’s former Governor Ajith Nivard Cabraal who appeared before the Committee when the EPF accounts were under scrutiny had stated that those investments would certainly bring value in the long run. The report also noted that the EPF had not made any income from the investment of Rs. 500 million in SriLankan Airlines in 2010.
Mr. Cabraal has said in reply that it would take five to ten years to earn a profit from the investment made in SriLankan Airlines as it is a long term investment.
When queried by the Committee as to why the EPF had been unable to gain a profit from an investment of over Rs. 205 million in the share market, Mr. Cabraal had stated that the fluctuations in the prices of shares is the main reason for it.
The Committee which inquired into the current position of the Internal Audit Unit of the EPF considering the fact that nearly one trillion rupees is controlled by it found that there are only eight officers attached to this Unit due to cadre resections and they had to cover 60 district offices including sub offices. Steps have since been taken to computerise the EPF system so that there would be better control over its financial management.
The committee also found that there was a delay in releasing claims to members or their beneficiaries with the balance of non-settled accounts standing at over Rs. 120 million and non-claimed beneficiaries accounts at over Rs. 13 million. The Public Accounts Committee also questioned what action had been taken against the Board of Directors of the Janatha Estates Development Board (JEDB) for misusing the money released by the Treasury to settle the EPF arrears of JEDB workers.
The Chief Accounting Officer of the EPF had informed that it was found that the directors were personally responsible for the non- payment of EPF dues and when questions were raised the Board members had resigned. The PAC headed by Higher Education Minister Dr. Sarath Amunugama probed the accounts, between January 2013 and October 2013, of 43 State institutions and its findings were included in this report.