KUALA LUMPUR: Manipulation and falsifying of accounts, including using Lembaga Tabung Haji (TH) money for political activities, are among reasons for the fund incurring billions in losses.
This was revealed in Parliament by Minister in the Prime Minister's Department Datuk Seri Dr Mujahid Yusof Rawa (pic), who briefed lawmakers on the controversies surrounding TH.
"TH during the Barisan Nasional era openly and clearly falsified accounts to hide the losses it suffered," he said, after being given permission by Speaker Datuk Mohamad Ariff Md Yusof under Standing Order 14 to address the House on Wednesday (April 10).
Despite having falsified its non-existent profit, he said, TH announced a dividend of 6.25% for depositors in February 2018 with payouts totalling RM2.7bil.
Mujahid said the losses rose to RM10.2bil after TH's RM19.4bil investment in property and companies that were valued at only RM9.7bil as of Dec 31, 2018.
He said TH's investment into FGV Holding Bhd shares resulted in losses of RM1.1bil.
He added that TH incurred further losses of RM670mil in bailing out Ramunia Holdings and RM140mil in purchasing a 30% stake in Putra Perdana Bhd.
According to Mujahid, following the takeover of TH by the new management under Pakatan Harapan administration, RM22mil was discovered to have been diverted from the Yayasan Tabung Haji 2017 programme for politically slanted activities.
He told lawmakers that the government has initiated a plan to revive TH through Urusharta Jamaah Sdn Bhd (UJSB), a special purpose vehicle.
He said UJSB would buy TH's assets worth RM9.7bil for RM19.9bil.
He added that the government will also inject RM17.8bil into TH over a 10-year period beginning 2020.
Owing to the steps taken under the new administration, Mujahid said TH chalked up surplus assets worth RM1bil as of Dec 31, 2018.
He said this allowed TH to announce a 1.25% dividend for depositors for 2018, involving a payout of RM913mil.
He assured depositors that they could look forward to higher dividends for 2019 if the TH revival plans went smoothly.