Mujahid confirms Tabung Haji’s RM4.1b deficit, Bank Negara to step in

Minister in the Prime Minister's Department Mujahid Yusof Rawa today confirmed reports that Tabung Haji (TH) has a RM4.1 billion deficit in terms of assets as of 2017 but paid out dividends (hibah) anyway, in contravention of the law.

The dividend was made shortly before the 14th general election even though the Tabung Haji Act 1995 prohibits the paying of dividends if the pilgrimage funds' liabilities exceed assets.

"Tabung Haji has been declaring hibah since 2014 (which is) not in accordance with the Act because its assets have been less than its liabilities,” he added.

“In view of the current situation of Tabung Haji, a comprehensive turnaround plan is needed to restore its balance sheet. That is precisely what the new team has done," Muhajid told a press conference at the Parliament lobby today.

As part of remedial measures, Mujahid announced that Tabung Haji's deposit-taking activities will now be placed under Bank Negara Malaysia's oversight.

“To ensure the long-term sustainability and resilience of TH, the Government has decided to place it under the supervision of Bank Negara Malaysia administratively, from 1 January 2019,” he said.

Bank Negara had previously warned Tabung Haji about its financial position but it was downplayed by the leadership then.

Mujahid added that the cabinet has also endorsed a plan for a special purpose vehicle to take over and rehabilitate the pilgrimage fund's under-performing assets.

“The cabinet had discussed the turnaround plan thoroughly and given our full support and endorsement to the plan so that Tabung Haji's financial position can be regularised and restore the rakyat’s confidence," he said.

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