KUALA LUMPUR: Manipulation and misappropriation by management are among the reasons for Lembaga Tabung Haji (TH) to suffer billions of losses.
Minister in the Prime Minister’s Department Datuk Seri Mujahid Yusof Rawa today pointed out the Dewan Rakyat that during the previous government administration TH had falsify accounts to hide losses suffered by the pilgrims’ fund.
“TH’s accounts were also subjected to ‘manipulations after manipulations’ while high dividends were paid out,” he told Dewan Rakyat after he was granted permission by Speaker Datuk Mohamad Ariff Md Yusof.
“According to financial report standards, a company has to declare its losses if its shares fell 20%. But TH, at that time, set the share price drop (threshold) at 70%, and then changed it to 85% and 90% after that. This falsification was with the board’s approval.”
Mujahid said TH continued to give 6.25% hibah (dividend) in February 2018, involving RM2.7 billion that resulted from manipulated accounts with profits that did not exist.
“This also went against the Tabung Act 1995,” he said.
Mujahid said the TH’s new management also discovered more misappropriations by the previous administrators.
“The former management hid several important information that involved the 2012 sale of 25% shares in PT TH Indo Plantations,” he said.
“They also made several investments that led to losses, like in Felda Global Ventures shares that incurred losses up to RM1.1 billion.
“TH also made losses of RM670 million from its attempt to rescue Ramunia Holdings Bhd and RM144 million from buying 30% of Putrajaya Perdana’s ownership.”
Mujahid said to rescue TH, the government had initiated a special purpose entity, Urusharta Jamaah Sdn Bhd, to take over TH’s RM9.7 billion underperforming assets at RM19.9 billion.
He added that the government will also inject RM17.8bil into TH over a 10-year period beginning 2020.
“The government will set aside RM500 million in 2020, and then RM1.73 billion annually until all the sukuk has been redeemed.”
Mujahid noted that TH had so far showed improvements since it was placed under the management of professionals, who have the full support of the government.
As of financial year ended Dec 31 last year, TH’s assets were valued at RM76.5 billion, with a RM1 billion surplus.
The financial position has recovered, compared with the RM4.1 billion deficit in 2017, he said.