KUALA LUMPUR: Nine Employees Provident Fund (EPF) subsidiaries had suffered losses for three consecutive years since 2021, with total losses in 2023 amounting to RM224.21mil.
The Auditor-General’s report 1/2025 (AG report) stated that the nine subsidiaries suffered losses of RM76.51mil in 2022 and RM49.76mil in 2021.
The companies that suffered losses are KWASA Europe S.a r.l, which recorded the highest loss of RM158.42mil in 2023, followed by Ameen Direct Equity I, L.P (RM25.61mil), KWASA Europe-I S.à r.l (RM14.40mil), Naungan Sentosa Sdn Bhd (RM11.88mil), Kwasa Utama Sdn Bhd (RM8.61mil), YTR Harta Sdn Bhd (RM2.70mil), Kwasa Singapore Duo Pte Ltd (RM1.36mil), PPNK-Harta Sdn Bhd (RM840,000) and Common Icon Sdn Bhd (RM390,000).
According to the audit report, three EPF subsidiaries, namely KWASA Europe, KWASA Europe-I and Naungan Sentosa, suffered losses due to the capital structure of the subsidiaries, which are largely in the form of shareholder loans.
The EPF was audited without reprimands but the AG report recommended that federal agencies strengthen revenue generation efforts to continue operations based on continuous efforts and reduce reliance on government grants.
The report also recommended that federal agencies review the direction and business plans of subsidiary companies that have suffered losses for three consecutive years and have not provided proper returns.
The EPF owns a total of 55 subsidiaries, of which 34 recorded profits in 2023. — Bernama
