Backdoor Withdrawal

Members of the Employees Provident Fund are using the State Mortgage Investment Bank as a conduit for premature withdrawal of their EPF balances.
SMIB has the statutory authority to give housing loans against member balances of the EPF and collect defaulted instalments from the EPF.rn

rnNearly 17,925 or a massive 32.65% SMIB borrowers had defaulted by December 31st. Most of them had borrowed against their EBP balances.rn

rnldblquote But when we submit the claim to the Central Bank we get the money back,
dblquote General Manager U. H. D. Pathmasiri told members of the Public Review Committee at the Finance Ministry on Thursday.rn

rnldblquote That happens in April and most of the arrears are then cleared.

rnThe Public Review Committee, is a new mechanism introduced by the government to make government entities more accountable to Civil Society. rn

rnThe Committee consists of members of the Organization of Professional Associations, accounting bodies and the Bar Association.rn


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