Dear YB Tony Pua,
Permit me to introduce myself as a retiree from private sector who had been an EPF contributor. I thank you very much for bringing up the issue of EPF advancing monies for low cost houses in Willayah Persekutuan. As much as we support schemes for supporting the poor, as rightly pointed out by you and others, it shall not be at the expense of EPF contributors like us. I wish to bring to your kind attention few issues which I hope your team will examine for the benefit of contributors like us. As this has direct and long term implication for every EPF contributor, I humbly request you to vehemently protest and protect innocent contributors like us.
1. Who is the borrower in this case and who is the lender? Only the lender can foreclose a property and if EPF is not the lender what is the use of a collateral? If EPF is not the direct lender what locus standi does EPF have for foreclosure? Is there loan agreement with EPF and the borrower ie individual borrower? How is EPF going to implement land code act in the event of defaults? Is EPF permitted to lend to individuals who are not even EPF members? Can EPF, in this case as a 3rd party, take any action against defaulters? ( There is no guarantee etc). What recourse does EPF have in the event the organisation behind this does not exist after a few years as these loans can be as long as 25 years?
2. What is EPF's collection arrangement? Who is the debt collector? May be City Hall of Kuala Lumpur will undertake this function but then what firm arrangements have been made? To disburse funds by March means, probably all formalities are likely to be overlooked.
Hope your team of Ahli Parlimen will will stand behind citizens like us and wish you good luck in all your endeavors.