9,000 bosses default on EPF contributions

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MORE than 9,000 employers are getting away with not contributing to their workers’ Employees Provident Fund (EPF).

The Auditor-General’s Report 2008 found that the number was due to a low number of EPF inspectors compared to employers, with one inspector having to conduct checks on up to 1,283 employers.

Until December last year, 450,605 employers have been registered with the fund with 9,223 failing to contribute.

The report found that inspectors had the heaviest workload in Kota Kinabalu, Ipoh and Muar.

Kota Kinabalu had only 12 inspectors looking after 15,396 employers with a ratio of 1,283.

Ipoh had 17 looking after 18,552 (1,091) while Muar had seven inspectors checking on 6,776 employers (968).

“The audit finds that on average each inspector at the branch level was checking between 643 and 1,380 employers. Also, the workload at each branch was different,” the report said.

It said the fund had to study the ratio of inspectors to employers to improve its enforcement and rate of solving cases against employers, delivering of summons, court cases and ensure that employers contribute to the fund.

In reply, EPF said the ratio was based on factors such as the number of new cases against defaulting employers, geography location affecting the amount of time spent on travelling by an inspector and the complexity of the cases.

On complaints filed against non-conforming employers, the report found that 2,986 cases registered last year had not been resolved compared to 2,201 in 2007.

It also reported that despite an enforcement circular stating that non-conformity cases had to be resolved in not more than 30 days, including investigations and assessments, only 30.6% out of 111 test cases were acted upon.

“As many as 42 cases remain unresolved, including 26 that have been open for six months, since the original complaints were filed.

“The report recommended that the fund take action to resolve complaints against non-conforming employers or it would have to bear the arrears in contributions should the company be declared bankrupt,” it said.