KUALA LUMPUR: The move to transfer under-performing assets from Tabung Haji (TH) to a special purpose vehicle (SPV) has helped to restore the pilgrim fund’s balance sheet, according to Minister in the Prime Minister’s Department Datuk Seri Dr Mujahid Yusof Rawa.
With the transfer, TH’s assets now amount to RM76.5 billion against liabilities of RM75.5 billion, giving it a RM1 billion surplus. In comparison, the fund’s assets in 2017 stood at RM70.3 billion against RM74.4 billion in liabilities, giving it a RM4.1 billion deficit.
The assets were transferred to Urusharta Jamaah Sdn Bhd, a company wholly-owned by the Ministry of Finance. They comprise 29 real estate assets, an unlisted company and 106 domestic security assets, collectively valued at RM19.9 billion.
However, it was reported last Friday that the book value of the assets amounted to only RM10 billion.
Mujahid confirmed that despite the deficit, the fund proceeded to pay out dividends for 2017.
He said the government was presented with three options, the other two being acting as guarantor to TH and injecting more money into the fund.
“The government felt that transferring the assets was the best option,” he said.
“When Pakatan Harapan took over as the government, we wanted to save TH whose deficit was rising. So we took the best option, which was to remove all under-performing assets,” he told the Dewan Rakyat.
The minister said the transfer of the assets was also necessary to enable TH to continue paying out dividends in accordance with the Tabung Haji Act 1995. The legislation prohibits the paying of dividends if its liabilities exceeded its assets.
“We are doing this in the interest of the depositors, unlike the previous government,” he added.
