KUALA LUMPUR: A Special Purpose Vehicle (SPV) under the Finance Ministry will take over an estimated RM19.9bil worth of Tabung Haji's (TH) underperforming assets, says its chief executive officer and managing director Datuk Seri Zukri Samat (pic).
He said that in return, "the SPV will issue RM10bil sukuk and RM9.9bil of Islamic Redeemable Convertible Preference Shares".
He added that TH is targeting to complete the exercise by end of this month.
The asset transfer will include the land TH bought from 1Malaysia Development Bhd (1MDB).
Zukri said the assets to be carved out would be identified using two criteria. For properties, it would be those with a yield of less than 2% and for equities, the value impaired would have exceeded 20%.
Meanwhile, he said measures will be taken to strengthen governance of TH's operations and to refine its business model.
"We should not be competing with Permodalan Nasional Bhd. We will relook at our asset allocation. For equities, it should be 20% to 30%, instead of the 50% we are holding now," he said.
Zukri said it is business as usual at TH.
"In fact, today there were 170 new accounts opened with us," he said to reporters at a press conference on Tuesday (Dec 11).
The pilgrimage savings fund has been rocked by revelations following the release of a damning report by Minister in the Prime Minister's Department (Religious Affairs) Datuk Seri Dr Mujahid Yusof Rawa in Parliament, who highlighted illegal dividend distributions since 2014, assets shrinkage of RM4.1bil and claims of accounting irregularities to mask a higher profit.