EPF submits names of 442 defaulting directors to Immigration Dept

  • Business
  • Tuesday, 08 May 2012

KUALA LUMPUR: The Employees Provident Fund (EPF) has submitted the names of 422 defaulting company directors to the Immigration Department for the period from January until March 2012 to prevent these directors from leaving the country without first settling their employees' EPF contribution arrears.

The EPF said in a statement released to the press yesterday that this was in accordance with Section 39 of the EPF Act 1991.

“The action taken against the directors of defaulting companies is part of our diligent enforcement exercise,” EPF's general manager for public relations, Nik Affendi Jaafar, said.

“This further proves our determination in safeguarding members' retirement wellbeing in which we will not hesitate to take stringent action, including levy actions and civil suits, against employers and company directors who have failed to meet the EPF obligation,” Nik Affendi added.

Meanwhile, the EPF said 160 errant employers were fined a total of RM155,400 by the courts under Section 43(2) of the EPF Act 1991.

A total of 255 civil suits and 892 criminal cases were also filed with the courts against employers who have defaulted on their employees' monthly EPF contributions, it said.

It said that Peransang Jati Sdn Bhd of Selangor was imposed with the highest fine of RM4,000 by the court. This was followed by Asadra (M) Sdn Bhd of Selangor and Sentinel Security Services Sdn Bhd of Kuala Lumpur which were each fined RM3,000, and SF-MGC Sdn Bhd of Selangor which was fined RM2,500.

Meanwhile, Eps Ground Support Services Sdn Bhd of Selangor and Heng Huat Timber Sdn Bhd of Kuala Lumpur were fined RM2,000 each.

Under the EPF Act, all employers are obliged to submit their statutory monthly contributions for their employees before or on the 15th day of every month.

“The courts usually allow the errant employers to settle the contribution arrears through up to six instalments. In this period, the EPF will monitor them closely to ensure that the amount outstanding is paid in full. Upon receiving the full amount, the EPF will credit all outstanding contributions to the respective members' accounts,” said Nik Affendi.

“While we stand firm in protecting our members' retirement savings, we urge members to do their part in curbing defaulting employers by checking their EPF account frequently, and making sure contributions from their employers are paid on time and accurately,” he added.

It said members should seek an explanation from their employers or report to the EPF by contacting the EPF's Call Centre at 03 8922 6000 or via online at once if they discover something amiss in their EPF account.

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