EPF incurred huge losses as investments failed, audit report reveals
November 12, 2022 05:07 pm
The Employees’ Provident Fund (EPF), the largest social security scheme in Sri Lanka, has suffered massive losses due to the investments made in listed and unlisted companies, a new report compiled by the Auditor General’s Department revealed.
According to the report, the fund has invested Rs. 5,000 million in Grand Hyatt Colombo, however, it has not made any profits to date.
The EPF lost Rs. 205.49 million by December 31, 2021, after the licence of The Finance Company was cancelled by the Central Bank of Sri Lanka (CBSL).
The report revealed that a sum of Rs. 5,000 million or 53% from investing shares in unlisted companies was invested in the construction of Canwill Holdings Hotel Complex in 2013. Meanwhile, the construction work of Grand Hyatt Colombo project related to the erection of Canwill Holdings Hotel Complex had recommenced in 2020.
However, the construction work of the hotel complex had not been completed by December 27, 2021, and although 8 years had passed, the EPF has not received any benefit from the investment, the audit report pointed out further.
It was also revealed that 15,000 cards had been purchased at a cost of Rs. 12.61 million in 2008 for the issuance of new IDs to the fund’s members and re-registration purposes, however, these cards had gone to rack and ruin.
In addition, two out of the 35 machines purchased at a cost of Rs. 17.67 million had been misused and the necessary measures had not been taken regarding the remaining 33 machines, the audit report revealed further.
