By Saman Indrajith
The Employees’ Provident Fund (EPF) incurred heavy losses and did not receive any income by investing billions of rupees in the share market, Parliament was told yesterday.
The EPF annual report for the year 2012 tabled in Parliament by Chief Government Whip Water Supply and Drainage Minister Dinesh Gunawardena on behalf of the Minister of Labour and Labour Relations said that the EPF had not received any income from investments amounting to Rs 500,000,000 in an airline company, Rs. 205,489, 613 in 5,091,200 shares of a finance company and Rs. 810,321,611 in 23,712,200 shares of a hotel company in 2010.
"The EPF has not received any income from the investment of Rs. 8,793,951,889 in 14 companies as at December 31 2012. Out of those 14 companies, the investments made in six companies amounted to Rs. 7,358, 547, 720," observes the Auditor General on the financial statements of the EPF for the year 2012. The Auditor General has made this servation on June 19, 2014.
Five companies in which the EPF has invested Rs. 2,412, 402,036 have incurred losses in 2012/2013. Out of those five companies, four companies in which Rs. 2,206,912,423 was invested have incurred losses in the year of accounts 2011/2012 as well. The EPF has not received an income whatsoever from the respective companies in the two years of accounts, the report says.
The fund has made an overall investment of Rs. 63,102, 761, 384 as at December 2012 on long term and short term basis in 72 companies listed in the share market.
The report says that the EPF has invested Rs. 3,890,902,522, Rs. 6,877,822,908, Rs. 39,133,587,926, Rs. 73,948,947,927, Rs. 63,102,761,384 in share market in 2008, 2009, 2010, 2011 and 2012 respectively. The income received from those investments in the years 2008, 2009, 2010, 2011 and 2012 was 8.93 per cent, 22.99 per cent, 5.08 per cent, 3.58 per cent and 3.77 per cent respectively.
The Auditor General under the subheadings of management inefficiencies of the EPF observes: "The surcharges recoverable amounting to Rs. 101,140, 260 from 396 institutions had not been recovered even by April 2014. Action had not been taken even upto April 30, 2014 for the recovery of the outstanding contributions and surcharges amounting to Rs 175, 449,814 due from 148 institutions relating to the area of District Labour Office, Colombo East. Notices as required had not been sent for the recovery of the surcharges of the EPF amounting to Rs 14,379,993 recoverable from 169 local authorities in respect of the period from the year 2000 to the end of the year 2013. The outstanding contributions and the surcharges relating to the period from the year 2009 to January 2013 amounting to Rs 145,268,636 recoverable from 297 institutions in the area of authority of the District Labour office, Gampaha had not been recovered."
www.island.lk
The Employees’ Provident Fund (EPF) incurred heavy losses and did not receive any income by investing billions of rupees in the share market, Parliament was told yesterday.
The EPF annual report for the year 2012 tabled in Parliament by Chief Government Whip Water Supply and Drainage Minister Dinesh Gunawardena on behalf of the Minister of Labour and Labour Relations said that the EPF had not received any income from investments amounting to Rs 500,000,000 in an airline company, Rs. 205,489, 613 in 5,091,200 shares of a finance company and Rs. 810,321,611 in 23,712,200 shares of a hotel company in 2010.
"The EPF has not received any income from the investment of Rs. 8,793,951,889 in 14 companies as at December 31 2012. Out of those 14 companies, the investments made in six companies amounted to Rs. 7,358, 547, 720," observes the Auditor General on the financial statements of the EPF for the year 2012. The Auditor General has made this servation on June 19, 2014.
Five companies in which the EPF has invested Rs. 2,412, 402,036 have incurred losses in 2012/2013. Out of those five companies, four companies in which Rs. 2,206,912,423 was invested have incurred losses in the year of accounts 2011/2012 as well. The EPF has not received an income whatsoever from the respective companies in the two years of accounts, the report says.
The fund has made an overall investment of Rs. 63,102, 761, 384 as at December 2012 on long term and short term basis in 72 companies listed in the share market.
The report says that the EPF has invested Rs. 3,890,902,522, Rs. 6,877,822,908, Rs. 39,133,587,926, Rs. 73,948,947,927, Rs. 63,102,761,384 in share market in 2008, 2009, 2010, 2011 and 2012 respectively. The income received from those investments in the years 2008, 2009, 2010, 2011 and 2012 was 8.93 per cent, 22.99 per cent, 5.08 per cent, 3.58 per cent and 3.77 per cent respectively.
The Auditor General under the subheadings of management inefficiencies of the EPF observes: "The surcharges recoverable amounting to Rs. 101,140, 260 from 396 institutions had not been recovered even by April 2014. Action had not been taken even upto April 30, 2014 for the recovery of the outstanding contributions and surcharges amounting to Rs 175, 449,814 due from 148 institutions relating to the area of District Labour Office, Colombo East. Notices as required had not been sent for the recovery of the surcharges of the EPF amounting to Rs 14,379,993 recoverable from 169 local authorities in respect of the period from the year 2000 to the end of the year 2013. The outstanding contributions and the surcharges relating to the period from the year 2009 to January 2013 amounting to Rs 145,268,636 recoverable from 297 institutions in the area of authority of the District Labour office, Gampaha had not been recovered."
www.island.lk
No comments:
Post a Comment