Dr Wee questions EPF's MAHB share trading practices


PETALING JAYA: Datuk Seri Dr Wee Ka Siong questions Employees Provident Fund (EPF)'s rebuying of Malaysia Airports Holdings Bhd (MAHB) shares at higher prices shortly after selling them at lower prices.

The MCA president said that EPF sold a large number of its shares in MAHB at a lower price in 2023, around RM6.74 to RM7.70.per share.

He disregards EPF’s explanation that it had to sell its MAHB shares because it needed to pay dividends to EPF contributors.

He then pointed out that on Jan 15, EPF decided to make a voluntary general offer for Malaysia Airports Holdings Bhd (MAHB) shares at RM11 per share.

“It's like justifying the action of selling cheap and then buying back MAHB shares at a higher price,” he said in two Facebook posts on Saturday (Jan 18).

He cited data showing that EPF's shareholding in MAHB was stable from 2010 to 2022, but in 2023 it suddenly plummeted from 15.27% to 5.79%.

Almost 10% of EPF’s total share in MAHB was sold in a year, he said.

He compared the figures with EPF's shareholding in Malaysia Airports from 2010 to 2022, where only 1.88% of EPF’s shareholdings were sold in ten years.

Throughout 2023, Wee said that EPF sold MAHB’s shares at RM6.74 to RM7.70.

He questions who are the persons behind selling MAHB shares, and now are buying back the shares at RM11.

He also addressed EPF’s recent statement that they implemented a “Chinese wall” policy, which separates the teams managing strategic partnerships or dealing with confidential transactions from the teams managing investments in public equities.

“EPF does not need to implement a "Chinese Wall" policy as it is not a banking institution but an investment management institution,” he said.

While EPF said the policy was placed to prevent insider trading and protect investment, Wee said that fund managers should gather all data and information from various channels around the world to make accurate and profitable investment decisions for all EPF contributors

“This Chinese Wall is commonly used in the banking sector where information separation involves two departments or divisions.

“What is the use of adhering to the Chinese Wall policy and ultimately losing more than half a billion ringgit of contributors' money?” he said.

He also expressed concerns that EPF would use the Chinese Wall policy as a shield for all transactions that bring losses to the ordinary people.

“EPF wants to fault the Chinese Wall policy? Can't the group of investment experts and fund managers understand the meaning of strategic investment?” he said, adding that the people will need clarification from EPF about this issue.

On Jan 14, Wee asked for an investigation into the EPF for selling its MAHB shares at a lower price and repurchasing them at a premium in a short period.

He added that this involves the funds of 16.1 million EPF contributors.

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