The government recently announced a scheme for the EPF to lend RM5bil to ValueCap supposedly to buy shares in "undervalued companies"
Of course many EPF members are angry that the EPF is perceived to be bailing out important shareholders in a falling market as indicated in this malaysiakini article VoxPop: Economy - no point covering up .
As the EPF has strict guidelines on investments which they appear to bypass in some cases, it seems that ValueCap is being used to do what the fund cannot do like buy up a larger percentage of any company.
Most funds are not permitted to buy more than 10% shares or some other defined amount in any company but I think EPF did take a majority stake in RHB group for a while before disposing to foreign interests.
The Finance Ministry did not reassure EPF members about the terms of the loan and that is why many are upset.
They should have informed the details of the loan like 8% for 10 years and guaranteed by the government.
After all no details of ValueCap's operations are published and the type of profits they make.
I suggest to malaysiakini that there should be an interesting story there.
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