Mca Urges Probe Into Epf S Mahb Sell And Buy Move

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MCA has urged the MACC and Public Accounts Committee to investigate the Employees Provident Fund's (EPF) decision to sell its stake at the Malaysia Airport Holdings Berhad (MAHB) at a lower price and repurchase them at a premium in a short period.
Party's central committee member Quek Tai Seong said the authorities must find out if there were elements of insider trading involved.
"From the perspective of stock market operations, selling a large number of shares at a low price before privatisation and then buying them back at a high price shortly after creates a significant price gap, leaving room for substantial profits.
"It is not impossible that there was a secret arrangement between the buyer and seller to facilitate insider trading," he said in a statement today.
On Jan 14, MCA president Wee Ka Siong also called for an investigation on the matter, citing there may be weaknesses in EPF's management of information and planning if it sold the shares without being aware of MAHB's privatisation plans.
The Ayer Hitam MP added that if it was done deliberately, there could be a lack of transparency by EPF or vested interests by certain parties.
"It is like selling a bunch of bananas for RM10 and repurchasing the same ones for RM20. I am riled up.
“Where are all the smart people managing a very important organisation in the country,” The Star reported Wee as saying.
Yesterday, the EPF defended its move, saying it aligns with its broader investment objectives aimed at generating income required for dividend payments during the financial year.
EPF said the recent decision to make a voluntary general offer for MAHB’s shares at RM11 per share as part of a consortium reflects a separate, long-term strategic plan aimed at achieving sustainable growth and returns.
'RM500m in losses'
Unimpressed, Quek claimed that the EPF suffered a loss of RM500 million after selling low and buying back MAHB’s shares.
He also said that the issue cannot be brushed aside on the excuse of "long-term strategic investment".
“The EPF owes an explanation to the public, especially its 16 million members who are directly affected,” Quek stressed.
The MCA leader said it was also baffling why EPF decided on the move when there are widespread rumours in the market that MAHB might be privatised and delisted.
Quek Tai Seong“Typically, such a move would involve a mandatory buyback at a high price, and shareholders who held onto their shares would eventually reap substantial profits.
“However, the EPF's decision to sell shares at a low price completely contradicts the logic of investment, causing innocent losses to its members,” Quek said.
EPF has been an MAHB shareholder since Nov 30, 1999, when the company was listed on Bursa Malaysia’s main market at RM2.50 per share. - Mkini

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