Azmin: Govt adopts open, transparent approach to protect Tabung Haji depositors

SEREMBAN: The government has adopted an open and transparent manner to safeguard the welfare of Tabung Haji (TH) depositors, says Economic Affairs Minister Datuk Seri Mohamed Azmin Ali (pic).

“The government is being honest (berterus-terang) to the depositors of Tabung Haji.

“Over the past few years, in a situation where the pilgrim fund’s assets are lesser than its liabilities, the previous management of Tabung Haji still declare dividends (hibah). This is in opposed to the enactment, the Tabung Haji Act (1995),” he told reporters after a ceramah in Rantau town on Monday (April 8).

Azmin also explained that dividends can only be paid when a company is profitable.

Azmin, who attended the ceramah to shore up support for Pakatan Harapan’s candidate Dr S. Streram, said the government now is adopting an open and honest manner to protect the depositors and take care of their interests.

“The deposits will be fully guaranteed by the government,” he said when asked to comment on Tabung Haji.

TH announced on Friday (April 5) that it will give a hibah (dividend) of 1.25% to its depositors for the 2018 financial year, the lowest hibah given to depositors in TH’s history.

Several Barisan leaders had taken a swipe on the lowest hibah declared by TH, including former prime minister Datuk Seri Najib Razak.

It was reported earlier that over-stated profits, over-stated value of assets, an unbalanced profile of depositors and questionable transactions were all uncovered in the review of the financial position of TH.

The consultants highlighted that TH was sitting on up to RM10.2bil in losses of its domestic and international equities as of October 2018 and its liabilities outstripped assets by RM9bil.

TH later successfully restored its balance sheet after a restructuring plan which saw its underperforming assets transferred to a Special Purpose Vehicle (SPV) under the Finance Ministry.

The new management of TH has made several reports against the previous management over the misuse of the pilgrim fund’s monies and for misrepresentation in a corporate deal.

Last year, several Umno leaders had called for a Royal Commission of Inquiry (RCI) to probe the alleged financial misappropriation in TH.

“Why didn’t Umno ask for an RCI when they were in power, when Bank Negara warned TH? Why wait until now to propose this?” Azmin said when asked if there would be an RCI to investigate the matter.

He was referring to a warning letter issued by then-Bank Negara governor Tan Sri Zeti Akhtar Aziz on Dec 23, 2015.

The letter stated that the TH was paying out dividends and bonuses using its reserves since 2012, and that its dwindling reserves and assets were not sufficient to meet its financial obligations.

Source : TheStar