Opposition hits out at Govt. over stalled EPF measures

By Ashwin Hemmathagama – Our Lobby Correspondent
The Opposition-led adjournment debate yesterday took the Government to task for failing to execute regulations which were presented in Parliament in June 2013.

These regulations were a part of the stringent measures proposed to regulate the Employees Provident Fund and its investment options. The regulations make it mandatory to use a national identity card to identify employees at all times, prevent the maintenance of several accounts and look to enhance member benefits.
Moving the adjournment debate, Opposition lawmaker Joseph Michael Perera criticised the Government for allowing the misappropriation of EPF funds following imprudent investment options, which he labelled nothing but scams used to help kith and kin.
“You have failed to pass these regulations having wasted one year.
You have misappropriated the funds of the EPF. We doubt your investment decisions. We believe that these funds are invested in failed enterprises including Mihin Lanka. The amendments were to allow construction of a new building for the fund and to provide 30% of the EPF balance for all workers who were in employment for over 10 years to purchase a house or to take medical treatments,” Perera charged.
Seconding the motion, UNP MP Ravi Karunanayake wanted the Government to show cause for the delay.
“You have used EFP money in Mihin Lanka and SriLankan Airlines. Both companies are loss-making. You are playing with workers’ money. Why can’t you give assistance for self-employment based on the EPF balance? You have found it easy to use EPF money to keep loss-making establishments afloat. We urge you to legalise these regulations.”
Rural Affairs Minister Athauda Seneviratne joining the debate revealed that the Government plans to regularise outsourced services used by establishments, omitting the employment of people. “Compared to Singapore we deduct less for EPF. Singaporeans have used their EPF to construct buildings. Gone are the days that pensions are given. In the absence of the EPF system for farmers, we established a farmer pension scheme. Unfortunately the farmer pension scheme became weak,” the minister said.
According to JVP MP Vijitha Herath, the Government’s power over the EPF should be reduced. Speaking of the commitment of employees and the protest that took the lives of many including Roshen Chanaka, he said: “There are many companies avoiding the EPF. You have failed to take effective legal action against such employers. In Colombo there are over 800 businesses liable to pay EPF but you have only 20 inspectors.”
UNP MP Eran Wickramaratne admonished the Government for not submitting the audited accounts of the EPF for several years. “Sri Lanka EPF is one of the largest funds in South Asia. The fund exceeds Rs. 1.3 trillion but we haven’t received the audited accounts certified by the Auditor General after 2011. EPF is much different for any other listed company. I agree to the fact of diversifying the reinvestment. This will provide us diverse benefits. But the benefits were less due to imprudent investment decisions. Let us have the 2012 report. Don’t issue press releases with false information to mislead the public,” Wickramaratne expressed.
Also factoring in the debate, Dr. Harsha de Silva MP said: “Most of us here in this house aim to develop the EPF. We are not against the stock market or investing in it. The Central bank of Sri Lanka refers to a basket of investment options, which contains a few wrong choices. The last EPF report with us refers to 2011. Now it is 2014 and we still don’t have the 2012 report. In the absence of the reports, for example, we don’t know when the EPF bought the stocks of Ceylon Grain Elevators. Today, the stock market is rocketing for the first time after 1997. People don’t have an option but to invest in the stock market compared to low bank interest rates.”