The Inter-company Employees Union (ICEU) will lodge a complaint with the Bribery Commission today on the Employees’ Provident Fund (EPF) investments in the stock market. The ICEU said the EPF had incurred a massive loss of four billion rupees in this questionable deal.
Union President Wasantha Samarasinghe accused the government of failing to take action and that therefore it was vital for others to step in and find out how and why these transactions had taken place and to ensure that the culprits were apprehended. He said the EPF was made up of the money deducted from the salaries of private sector employees and the investments in the stock market were questionable, controversial and dubious transactions that needed to be investigated immediately.
Mr. Samarasinghe said the rate at which the EPF was incurring losses the private sector employees would not only lose out on interest but even the existing capital would also be significantly reduced and should it happen the treasury would have to intervene.
The EPF, which is the country’s largest fund, had so far invested a staggering Rs.7.2 billion in the stock market.
It is reported that the Galadari Hotel has incurred a debt of Rs.6.2 billion but the EPF bought 23.7 million shares at Rs.32.5 a share in 2010. The price of a share had now fallen to Rs.17 and at that price the EPF will only be able to obtain Rs.365 million for its shares.
BY OLINDHI JAYASUNDERE