To narrow the digital divide and to heighten the IT literacy level amongst Malaysians, a grandiose scheme to place a computer system in every home was envisaged. In itself, this would have been a most welcomed initiative, vis-a-vis its stated objectives. However, as can happen with some other well-intentioned initiatives, its implementation is fraught with much controversy.

Owning a computer system is still not regarded as a 'need' among many Malaysian families, more so for the rural folks. Admidst the faltering economy, real disposable incomes have further shrunk. Purchasing a computer system would have been the least of many a rubber tapper, fisherman, or hawker's worries. The whole campaign would have run aground but for a shining knight with EPF ringgit!

EPF contributors can now apply for the release of their Account Two balances to finance their computer purchase. What a brilliant move indeed. Domestic effective demand was instantly created as the question of affordability was immediately addressed. Think of the multiplier effect this will have on the local economy.

In its initial stage of implementation, an EPF contributor approaches a local PC vendor, selects a computer system of his choice, applies for his EPF withdrawal, waits for approval, gets the go-ahead and receives a cheque in his name, cashes it and pays the PC vendor for his purchase.

Almost immediately, complaints surfaced that the scheme was abused. While most contributors had withdrawn the maximum available (up to RM5,000), many had purchased cheaper PC systems and others had merely pocketed the whole amount less a token fee to a collaborating PC vendor who had supplied a fictitious invoice.

This had to be sorted out claimed the authorities.

In came Pos Malaysia. Its claim to an extensive existing network of branches throughout Malaysia to ensure the scheme's success is not to be contested. (Though, one wonders how Dell Computers manages to be the Number One PC Seller in the World when it does not have a branch in every nook and corner of the globe).

Through its own vehicle, Odasaja (sounds like 'Order Saja'), and its network of 'reliable' PC vendors, it will ensure that only bonafide applicants will be approved. All loopholes plugged... or so it seems!

Complaints on after-sales support abound. The postal staff were not able to handle even the most basic of support calls and purchasers must reroute their enquiries to the vendors. Complaints also came from other PC vendors who had been sidelined from the action.

And for their involvement, Odasaja charges seven percent. Worse yet, Odasaja has to rely on PC vendors to be their suppliers. And we know too well how good at bargaining one can be when it comes to purchasing using other peoples' money.

Mainly to cater to the growing grouses from non-participating PC vendors, Bank Simpanan Nasional was appointed as the other agent for the scheme who in turn appointed Unimaya and K-Bridge to set up their own consortium of dealer network.

The addition of middlemen in the purchase equation can only mean a costlier purchase We often hear of approved applicants still waiting for their PC to be delivered even after four months since their contributions had been deducted. Imagine how much savings the purchaser could have saved when PC component prices have been tumbling down on a weekly basis. On average, if one purchases a similar computer system on a cash basis he saves RM1,000 as compared with a purchase through the EPF scheme.

Worse still, there is no guarantee that all withdrawals from this scheme had been made by bonafide applicants only. Through the grapevine, we hear that many contributors are even willing to accept RM2,000 cash for a RM3,500 deduction from their EPF accounts. No computer system changes hands and the approved sub-agents pocket the difference wholly or share it with 'sub-sub-agents'.

Even if an actual delivery had taken place, there is no stopping the buyer from reselling it back to the PC vendor the same instant or the following day at a very much reduced price if the buyer's sole intention is to get cash under the scheme. In the past, he would only have 'lost' RM300 (at the most) compared to a potential RM1,500 now!