Why did government create valuecap?

Let me summarise Valuecaps existance:

EPF is under mandate to balance a certain % of it's assets in equities, and a certain % in bonds, some in foreign currency, certain % in commodities... etc etc etc. All very UNtransparent, but the rules DO exist.

But during 97 crisis, EPF hit their upper ceilings for equity allocation. But government instructed them to buy up shares to support the KLCI. How?

In order to support the sharemarket, they created Valuecap.
All money that goes into valuecap is written into EPF as BONDS. (with all the associated risk profiling and stuff in the accounts). Despite the fact that Valuecap puts all the money into equities.
Nevermind. Anyhow, this is government's "clever" way of getting around EPF risk allocation mandates.

Buggers. They think that those asset allocations were put there just for fun? They're supposed to protect MALAYSIAN PENSIONS by diversifying out the risk!

One more thing.

IMHO, EPF itself should not exist. It is a massive Ponzi scheme, like Bernard Madoff's hedge fund.

Let's be frank here. EPF does NOT earn 8% per annum. BUT, it pays out 8% dividends. How does it manage this? By taking in "new" money to make payments on "old" money.

Everyone knows: if too many people were allowed to redeem their EPF money at once, EPF would collapse and go bankrupt.

There seems to be a very VERY good reason why Malaysian accountants and auditors are among the lowest paid in the world: They are useless. Yes, all a bunch of useless bookeeping staff who do not actually do their job of handling the accounts properly and providing transparency and information to all stakeholders. Frankly, they don't really do much of anything that a High School accounting graduate could not do. Sad. (and, yes, I have a degree,training, and job experience in Accounting)

If you had a bunch of high level accounting firms from overseas come in and go over Malaysia's biggest companies and government bodies, and exact international accounting standards and practices... I think 80% of the board of directors will end up in court/jail.

Bloody third world country with 3rd world accounts...