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Bank Negara to supervise Tabung Haji

Syndicated News
Written by Syndicated News

KUALA LUMPUR, Dec 10 2018 : Lembaga Tabung Haji (TH) will be placed under Bank Negara Malaysia’s (BNM) supervision starting January next year to improve the organisation’s governance, said Minister in the Prime Minister’s Department, Datuk Seri Dr Mujahid Yusof.

He said the move was part of a comprehensive turnaround plan to improve TH’s balance sheet as it had recorded a deficit of RM4.1 billion as at Dec 31, 2017.

“The cabinet has discussed the recovery plan in detail and fully supports it,” he told reporters at the Parliament lobby today.

Also present was TH Group Managing Director and Chief Executive Officer  Datuk Seri Zukri Samat.

Mujahid said the recovery plan included the establishment of a special purpose vehicle (SPV) this month to take over, restore and maximise the recovery efforts of underperforming assets, as well as sales of the assets to improve TH’s financial position.

Meanwhile, Mujahid said he was confident that TH would be able to pay dividends to its 9.2 million depositors this year following the recovery and restructuring programme which was implemented since July, adding that the rate would depend on TH’s profits.

Asked whether legal action would be taken against the previous management, he said the matter would be dealt with later.

He said the previous management had violated the Tabung Haji Act 1995 which stated that two conditions must be met before making hibah (gifts of assets/cash) payment, namely, asset values cannot be less than liabilities and there must be distributable profits.

On the cost of Haj pilgrimage, he said the government had decided that it would remain at RM9,980 per pilgrim.

As at Dec 31, 2017, TH’s total assets stood at RM70.3 billion while liabilities amounted to RM74.4 billion. – Bernama

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