For Immediate Release

New Board formulates revival plan to address problem

KUALA LUMPUR: [MONDAY, 10 DECEMBER 2018]: The 2017 accounts of Lembaga Tabung Haji (TH) tabled in Parliament today, showed it has total assets of RM70.3 billion, with total liabilities of RM74.4 billion, indicating a deficit of RM4.1 billion as at 31 December 2017.

YB Minister Dato’ Dr Mujahid Yusof Rawa, told a media briefing after the accounts were tabled, that given the true financial position of Tabung Haji, the declaration and payment of hibah for 2017, had contravened the Tabung Haji Act 1995 (The Act).

Dr Mujahid said the Act is very specific on the payment of hibah. There are two conditions to be satisfied before payment of hibah can be made. These are, the assets cannot be less than liabilities and there must be distributable profits.

“TH has been declaring hibah since 2014 not in accordance with the Act because its assets have been less than its liabilities,” he added.
He said: “In view of the current situation of TH, a comprehensive turnaround plan is need to restore its balance sheet. That is precisely what the new team has done.

Under the turnaround plan, they have recommended the setting up of a Special Purpose Vehicle to take over, rehabilitate and maximise recovery of the TH’s under-performing assets.

Dr. Mujahid said: “The Cabinet had discussed the turnaround plan thoroughly and given our full support and endorsement to the plan, so that TH’s financial position can be regularised and restore the rakyat’s confidence.”
“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 added.