EPF incurs heavy losses, no income
- Saturday, 15 November 2014
The parliament has been informed that the Employees’ Provident Fund (EPF) has incurred heavy losses and had not received any income by investing billions of rupees in the share market.
The EPF annual report for the year 2012 was tabled in parliament by Chief Government Whip, Minister Dinesh Gunawardena on behalf of the Minister of Labour and Labour Relations.
The Minister said that the EPF had not received any income from investments amounting to Rs 500,000,000 in an airline company, Rs. 205,489, 613 in 5,091,200 shares of a finance company and Rs. 810,321,611 in 23,712,200 shares of a hotel company in 2010.
“The EPF has not received any income from the investment of Rs. 8,793,951,889 in 14 companies as at December 31 2012. Out of those 14 companies, the investments made in six companies amounted to Rs. 7,358, 547, 720,” observes the Auditor General on the financial statements of the EPF for the year 2012. The Auditor General has made this servation on June 19, 2014.
Five companies in which the EPF has invested Rs. 2,412, 402,036 have incurred losses in 2012/2013. Out of those five companies, four companies in which Rs. 2,206,912,423 was invested have incurred losses in the year of accounts 2011/2012 as well. The EPF has not received an income whatsoever from the respective companies in the two years of accounts,” the report says.
The fund has made an overall investment of Rs. 63,102, 761, 384 as at December 2012 on long term and short term basis in 72 companies listed in the share market.
The report says that the EPF has invested Rs. 3,890,902,522, Rs. 6,877,822,908, Rs. 39,133,587,926, Rs. 73,948,947,927, Rs. 63,102,761,384 in share market in 2008, 2009, 2010, 2011 and 2012 respectively. The income received from those investments in the years 2008, 2009, 2010, 2011 and 2012 was 8.93 per cent, 22.99 per cent, 5.08 per cent, 3.58 per cent and 3.77 per cent respectively.
