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EPF loses Rs 42m in P.C. House and Grain Elevators investments: COPA
View(s):The Committee on Public Accounts (COPA) disclosed this week that two investments by the Employees Provident Fund (EPF) in two companies, namely P.C.House and Grain Elevators had resulted in a total loss of around Rs 42 million.
This was revealed in COPA’s report presented to Parliament this week by its Chairman MP Lasantha Alagiyawanna.
COPA recommended that a programme be devised to ensure that EPF funds are invested in a more productive manner.
COPA also noted that the internal auditing of the Rs. 1.6 trillion EPF is done by the Central Bank (CB) through a private company, and there was lack of sufficient security in investing funds and internal auditing of the Dept of Labour (DoL), where some of the fund money is held.
COPA said the inter relationship between the CB and the DoL must be enhanced through a joint committee, as it is important to collect data through an integrated computer system connecting institutions and district offices of the DoL, in addition to collecting data through field inspections by DoL officials.
In response to the COPA inquiry, CB officials said that steps were being taken to alleviate the shortcomings in internal auditing and conduct it in a proper and regular manner.
COPA also noted that money received into the Fund, from different institutions, are kept in a General Deposit Account, and not credited to the accounts of the beneficiaries.
COPA also advised that a 10-year plan be drafted to continue the affairs of the EPF thorough a combined effort of all the relevant institutions and that, COPA should investigate the affairs of the Fund annually.