Tabung Haji to transfer RM19.9b assets, including 1MDB land, to SPV

Tabung Haji will transfer around RM19.9 billion in assets, including its land in the 1MDB-linked Tun Razak Exchange (TRX), to a special purpose vehicle under the Finance Ministry.

According to Tabung Haji CEO Zukri Samat, these underperforming assets will be managed by the SPV for seven years.

"We bought that land (in TRX) for RM196 million, and until now we haven't gotten any returns.

"The assets being transferred were identified through two criteria. For properties, it involves land that has given a return of less than two percent.

"As for equities, it involves those which values have dropped 20 percent," he told a press conference in Kuala Lumpur today.

The transfer is part of a plan to turn around Tabung Haji's fortunes, after it was revealed that the pilgrimage fund had an RM4.1 billion deficit.

"After the transfer, Tabung Haji will be able to balance its accounts with assets that match its liabilities," he said.

He assured that dividends will be paid to depositors this year, and that funds for the hajj next year are intact.

Yesterday, de facto Islamic affairs minister Mujahid Yusof Rawa revealed that Tabung Haji had only been able to pay dividends since 2014 thanks to some creative accounting.

Based on an independent review by PriceWaterhouseCoopers (PwC), Mujahid said Tabung Haji has assets of RM70.3 billion, as opposed to liabilities of RM74.4 billion, representing a deficit of RM4.1 billion, as of end-2017.

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