KUALA LUMPUR: Top management of Employees' Provident Fund (EPF) who are above the restrictive Chinese wall policy must explain the decision behind the "sell low, buy high" of Malaysia Airports Bhd (MAHB) shares because it involved money from the public, said Datuk Seri Dr Wee Ka Siong.
The transaction was a poor investment strategy which resulted in a huge loss, claimed the MCA president.
Dr Wee said there were senior management team members who are "above the wall" although EPF had earlier described their Chinese wall policy - where there is a strict boundary between teams that have access to material non-public information and teams that deal in the public markets, to ensure that no privileged information crosses between them.
"A Chinese wall policy is created to prevent insider trading and ensure transparent governance. However, according to the Corporate Finance Institute (CFI), there will still be those placed above the wall such as key management figures, such as the chief executive officer or the board of directors.
"This is to ensure they make the best decisions for the company. In this case we want to know who is said to be "above the wall" in EPF?
"Who made the final decision maker in EPF for this deal?" Dr Wee asked.
He said EPF has used the Chinese wall policy as a reason for their "sell low, buy high" of MAHB shares.
"Is this Chinese wall an actual mechanism to set a boundary between teams or an excuse to cover the weakness in their strategy?"
The MCA president urged the top management to explain who approved this transaction as it involved public funds.
"It was a shortsighted investment decision to sell shares at RM6 in 2023 and repurchase it at RM11 in 2024 via a General Offer (GO) made by EPF.
"This is not a wise investment strategy.
"Who benefited from this transaction and why is there no direct answers from EPF to these questions? he asked in a video posted on his TikTok account on Tuesday (Feb 18).
The video was recorded on Feb 13 as response to a recent EPF's statement using Chinese wall to explain the "buy low, sell high" of MAHB shares.
Dr Wee said the public has a right to know the truth as EPF manages these retirement funds meant for Malaysians.
"This is not government or politicians' money, but the people's money kept for their old age. Which is why each decision made by EPF must be transparent," he said
Dr Wee released the video in his Facebook late Tues Feb 18 on the same day the Ministry of Finance (MoF) explained that the repurchasing of the shares was a new long-term investment by EPF.
"This investment aims to ensure long-term returns by taking into account the stable nature of infrastructure assets that are capable of generating cash flow consistently as well as the potential for continued growth in the number of passengers.
"This strategy is in line with EPF's objective as an institutional investor that prioritises sustainable returns for the benefit of members," the MoF said in a written reply on the parliament website on Tuesday (Feb 18) to a question by Datuk Azman Nasrudin (PN-Padang Serai).
Azman had questioned the reason for selling MAHB's shareholding by the EPF at a price of RM5.40 to RM7.36 per unit in 2023 and then buying it back at RM11 per unit in 2024.
Dr Wee had consistently questioned about this "sell low, buy high" of MAHB shares.
"It is said the buying back of shares at RM11 was for privatisation purposes. Who was responsible for this decision which incurred losses of between RM539mil and RM694mil?
"If EPF had not sold off its shares at RM6 in 2023 and reduced its holdings (in MAHB), then, they would not have needed to fork out and buy it back," he had said.
It was reported on Feb 13 that EPF refuted allegations of misconduct or regulatory breaches in the buying and selling of the MAHB shares and the purported losses incurred from the transaction, citing its strict Chinese wall policy.
EPF also welcomed any review and investigation regarding its investment in MAHB.
