Saving the Tabung Haji…

Tabung Haji lodges police reports against former chairman (Abdul Azeez), CEOs, and senior management…

5 January 2019


Rafizi Ramli has claimed that the administration of former premier Najib Abdul Razak used PAS to “purify” the image of Lembaga Tabung Haji before last year’s general election.

In a statement today, the PKR vice-president said that at the time, PAS president Abdul Hadi Awang was led to believe that his party could become a ‘kingmaker’ by playing nice with Umno and Naji

As such, Rafizi stated, PAS was brought in to purify Tabung Haji’s image when he first raised allegations of mismanagement.

A PAS delegation attended a briefing at Tabung Haji prior to the May polls and subsequently declared its financial management satisfactory, he said, which indirectly indicated that his claims were made up.

‘PAS trapped’

Rafizi had previously been charged with criminal defamation in 2016 for posting an article titled “An analysis of Tabung Haji’s finances 2009-2015 (Analisa Kewangan Tabung Haji 2009-2015)” on Facebook.

He had claimed that Tabung Haji faced an RM3 billion shortfall in assets compared to its deposits.

On Dec 10 last year, Minister in the Prime Minister’s Department Mujahid Yusof Rawa confirmed reports that the Islamic pilgrimage fund had a RM4.1 billion deficit in terms of assets as of 2017, but had nevertheless continued to pay out dividends.

“So when proof started coming out that what I exposed was true, PAS was trapped.

“If they agreed (with me about Tabung Haji’s scandals), then the PAS president would be embarrassed, because they had previously been the panel which ‘purified’ (menyucikan) the mismanagement at Tabung Haji,” his statement read.

‘Forced to politicise’

As a result of this alleged failed political strategy, Rafizi noted, Hadi is now forced to politicise the Tabung Haji issue and play up racial sentiment.

At a London dialogue session, the PAS president alleged that the Tabung Haji issue was being used to fuel the agendas of certain parties to damage the image of Islam.

In his statement, Rafizi said that PAS should be the most worried about mismanagement in Tabung Haji due to it being an Islamist party.

“As the president of a party that claims to protect Islam, actually it is PAS who should be the most worried if there is any mismanagement in Tabung Haji.

“Actually, it should be him (Hadi) who steps forward to examine Tabung Haji’s every step, so that the institution becomes the best and most respected Islamic financial fund in the world.”


KUALA LUMPUR – Rivals-turned-ally Umno and PAS will again stage a rally on January 18, this time to protest the alleged “meddling” of the Ministry of Finance in Lembaga Tabung Haji’s affairs.

Umno Supreme Council member Datuk Lokman Noor Adam said tonight the rally is scheduled to take place in front of Menara Tabung Haji at Jalan Tun Razak here, and will be joined by other NGOs.

“For the time being, we are still planning the rally, so there is no other available info aside from the date it will take place,” he said during a minor rally in front of the Dang Wangi police district headquarters protesting the death of firefighter Muhammad Adib Mohd Kassim.

During the rally, which also saw a police report lodged by several of the participating NGOs, Lokman spoke at length that the ministry’s alleged interference into Tabung Haji has resulted in losses for its contributors.

Last month, the Cabinet decided that the pilgrim fund will be placed under the supervision of Bank Negara Malaysia, in a bid to boost its governance.

This came after minister in charge of religious affairs, Datuk Seri Mujahid Yusof Rawa, revealed a massive RM4.1 billion deficit in Tabung Haji that he also alleged has been paying out dividends unlawfully since 2014.

Its board had also lodged police reports against former chairman Datuk Seri Abdul Azeez Abdul Rahim, and other senior management staff.

Islamist party PAS had then warned Putrajaya against attempting to destroy an Islamic institution and erode Muslims’ trust in the pilgrim fund.

– Malay Mail

11 December 2018











PETALING JAYA: Lembaga Tabung Haji’s (TH) 2017 financial statements have been overstated mainly because the pilgrims fund did not make impairments on significant decline in value of its investments, a review of its financial position shows.

The fund should be making a RM1.43bil loss in 2017 instead of a RM3.41bil profit as reported in its annual report 2017, according to the review conducted by Pricewa­ter­houseCoopers (PwC).

Impairment is an accounting principle describing a permanent reduction in the value of a company’s assets.

The RM3.41bil profit did not include the impairment loss on available-for-sale (AFS) equity in­­vest­ments of RM4.26bil, impairment loss on AFS debt security instruments of RM7mil and other adjustments of RM4.85bil.

Also, instead of retained earnings of RM162mil, TH has accumulated losses of RM4.68bil as at Dec 31, 2017.

PwC’s findings showed that Tabung Haji did not make impairment in shares equity instruments due to its policy on significant or prolonged decline in the value of its investments.

“TH’s investments in AFS have been marked-to-market, which resulted in unrealised fair value losses recognised as a negative AFS reserve of RM4.667bil as at Dec 31, 2017, due to declining value,” PwC wrote.

TH’s threshold in determining whether there has been significant decline in the value for equity shares – to determine whether there is an impairment – was changed twice in 2017, from 70% to 85%, and then to 90%.

PwC said TH management indicated that this was mainly to defer impairment losses to “enable TH to make certain level of distribution to depositors in 2017”.

Such a policy, it said, did not follow the Financial Reporting Standard (FRS) requirements, which the fund should comply.

“It is also worth noting that the minister had approved the impairment policy for significant decline at 90%,” PwC wrote.

“Management informed us that Tabung Haji had received a memo from the minister dated Feb 10, 2018, approving the impairment policy for significant decline at 90%.”

However, no disclosure was made in the 2017 financial statements of the approval obtained from the ministry to explain the departure from the application of FRS Imple­men­tation Committee 14 nor was the FRS compliance statement qualified for this departure.

The review did not state who the minister was but Lembaga Tabung Haji is under the portfolio of the minister in the Prime Minister’s Department.

PwC also noted that no impairment was made of TH’s investments in associates as well as investments in subsidiaries, financing receivable from subsidiaries and debt security instruments. The fund also did not recognise a fair value loss on investment properties.

Negative fair value loss on investment properties totalling RM77mil was not recorded as at Dec 31, 2017, PwC said.

“Management stated that no adjustment was made for TH Plati­num Park due to its intention to reclassify property to plant, property and equipment in 2018 by occupying a portion of building for own use.”





Tabung Haji at risk of a ‘bank run’, report reveals

PETALING JAYA: Lembaga Tabung Haji (TH) gave returns for deposits as high as 8.25%, a move which also turned out to be a reason for its poor financial state of affairs.

In a startling revelation, a single depositor had more than RM190mil in the fund that was set up to help Muslims fulfil their haj.

Tabung Haji’s Recovery and Restructuring Working Plan reveal­ed the high concentration of depositors to a small segment where 1.3%, or a mere 117,000 of them (depositors), contributed to 50% of its deposits.

The report highlighted the dangers that the fund faced should there be a “run” by this small group of depositors.

“Action taken by this small group can trigger a ‘bank run’ (when a large number of depositors withdraw their money) situation,” the report stated.

Towards this end, the plan has also outlined measures to improve the liquidity and financial position of Tabung Haji.

It suggested Tabung Haji to review the contracts for existing deposit products and set a savings limit of RM200,000 for depositors.

It also suggested that the remaining balance exceeding the RM200,000 limit be separated. This means the government would only guarantee up to RM200,000 for every depositor.

This is to lighten the government’s burden in the future as it currently insures all Tabung Haji savings with no limit unlike the Perbadanan Insurans Deposit Malaysia’s (PIDM) deposit insurance protection limit of RM250,000 per depositor per member bank.

The report said that this government protection combined with hibah distribution has inadvertently attracted more deposits, particularly from high-networth individuals, for the purpose of investment rather than for haj.




10 December 2018




9 December 2018




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