Parti Amanah Negara vice-president Mujahid Yusof Rawa has raised concerns over Lembaga Tabung Haji’s delay in declaring its dividends to its nine million depositors which was supposed to be done on Jan 22.

“Most of these depositors are Malay Muslims, and Tabung Haji is an Islamic institution, so what has the government done for them?" he told Malaysiakini .

Mujahid said although Tabung Haji has until March to declare its dividends and bonuses, its silence on the matter is deafening, and puts into question the institution’s financial capacity.

“Can Tabung Haji provide members with profitable dividends? Will they be able to entertain withdrawals from depositors?” he asked.

Mujahid also claimed that Tabung Haji’s dividends and bonus payouts exceeded its annual profits.

Based on its financial report of 2012-2014, the average amount for bonuses and dividends amounted to 107 percent more than its profits, Mujahid noted.

In 2014 for example, Tabung Haji’s profits were RM2.98 billion, but dividends paid out hovered around RM3.3 billion, he pointed out.

“Such practices would surely undermine Tabung Haji’s position and reserves, and could pressure Tabung Haji to eventually liquidate its assets. How can Tabung Haji board of directors allow this to happen?” asked the Parit Buntar MP.

“Is it true that Tabung Haji’s value of assets is less than its liabilities?” he asked, adding that this may eventually lead to depositors failing to receive dividends or bonuses.

In line with Act

Not paying dividends and bonuses during such situations are in line with Lembaga Tabung Haji Act, clause 22 (2) (i), Mujahid said.

“How would this affect the nine million Muslim depositors who have deposited their savings in Tabung Haji to carry out their Haj?

“What happens when they discover that Tabung Haji had failed to carry out its duties in a trustworthy manner?

“What happens if they discover that their monies have been manipulated in an irresponsible manner?” Mujahid asked.

Mujahid said Tabung Haji should be able to pay depositors their dividends by Jan 22 as the amount of savings doubled in 2015 compared to 2009, totalling RM57.9 billion.

The amount has doubled because Muslims have placed their trust in Tabung Haji, he added.

Five percent of Tabung Haji depositors control almost 75 percent or RM43.4 billion of Tabung Haji savings, he revealed.

But Mujahid warned that depositors may consider withdrawing their contributions if they felt that Tabung Haji’s financial situation was questionable and their money was under threat.

“Without this five percent, the deposits would be reduced to RM14.5 billion only,” he said.

He cautioned against a government bailout if Tabung Haji found itself in dire financial straits.

This, if it happens, would erode the people’s trust in the country’s institutions and financial systems, Mujahid said.

“Has the management faltered in its investment decisions?

“Does it have weaknesses in terms of proper risk control and exposure of the institution’s portfolios? If the answer is yes to all these, the management must be condemned,” Mujahid said.

He added that civil servants who were complicit in the matter must also be held responsible if the government were to bail out Tabung Haji.

“We demand answers on behalf of the nine million Muslim depositors to clear the image of Islam and the country which has been tarnished by these issues involving Tabung Haji,” Mujahid said.

The institution was in the limelight recently when there were calls to Tabung Haji and Retirement Fund Incorporated (KWAP) to recover RM1.5 billion from 1MDB after the state-owned company purportedly violated the terms of its sukuk (Islamic financial) agreement.

Earlier, in May, Prime Minister Najib Abdul Razak had advised Tabung Haji to sell off its stake in the Tun Razak Exchange.

This was after public backlash due to claims that Tabung Haji had paid an inflated price as 1MDB had purchased the land from the government at just RM64psf in 2011.