Thursday, 9 February 2012
“… does not involve the EPF providing loans to buyers…buyers should apply directly to the ministry…”
“…. a special purpose vehicle of the Federal Territories Foundation (SPV FT Foundation) to provide loans and the terms were being finalized …“
“…. an initial facility of RM300 million with any further loans to be granted at the discretion of the EPF investment panel..”
“…ownership of the houses shall remain with SPV FT Foundation… secured as all housing units will be charged or assigned by SPV FT Foundation to EPF with security cover of at least twice the loan amount…”
“…We understand that SPV FT Foundation will only select participants with good track records..”
“…Kuala Lumpur City Hall would buy back the houses to secure the cash flow required for the repayment of the loan in the event of non-payment…”
Ooohh… I am feeling a billion percent secured and relieved with the above “explanation” from the EPF on plans (was it RNC’s, I wonder?) to hand out, opps, to, urm, help out the unqualified to get funds to buy housing units.
See, even as I write the above sentence I am glowing with an immense sense of security.
Let’s see the points again:
EPF not giving out direct loans: We knew that. Impossible to administer and could well be illegal anyway.
An SPV is involved: okay… and provided with initial facility of RM300m : ahh… money from where? The EPF.
Definitely NOT direct there.
Ownership of homes with SPV, assigned and charged to the EPF and is secured by KL City Hall.
So, SPV gets to administer – ie. pick out who gets what, hand out the money, get the administrative fees for doing so, yada yada bla bla, but risk is borne by City Hall (Let’s not forget EPF, the INDIRECT provider of the so-called loans, shall we?)
And get this: SPV will select participants with good track records.
Hmm… Wonder how they will do this when the pool is basically from a group unqualified to take loans in the first place and as such without much of a thing called credit report.
There will be future drawdown possible with satisfactory conduct: And if not? What happens? SPV pays back the RM300 million?
Or EPF gets to sell homes of the poor (oh so cruel of the EPF, sob sob boo hoo) to gain back whatever is given out by the SPV.
Oh. Wait. No, KL City Hall will pay double for the house, isn’t it?
Is that so? If City Hall is so flushed with money, why can’t they undertake such a Murni scheme?
I forget that there is every chance that I will be helping put roofing over the poor, and the homeless.
Only thing is that I know that most of these homes are rented out at rentals way above what their poor downtrodden owners are paying in installments.
Sometimes for multiple units summore. More the pity, eh?
Let’s not forget also the alleged politicians’ list for such homes.
Charity starts at home. Let not bleeping use someone else’s home to do so, can we?
The thing that irks me the most about this scheme is that - just like everything else these days - no matter how loud we protest, the train continues.
A gravy train that is surely going dry up sooner or later.
PS: Watch out for the 10% mandatory health insurance too. Us middle class sure are getting pummeled left, right, centre, above and below with this current bunch.