Tabung Haji bonuses since 2014 not lawful, says minister

Asila Jalil Asila Jalil Updated 5 years ago · Published on 10 Dec 2018 11:29AM · 4 Comments

Minister in the Prime Minister’s Department Mujahid Yusof Rawa says Tabung Haji is in need of a turnaround plan to keep its books in the black. – The Malaysian Insight pic by Seth Akmal, December 10, 2018.

TABUNG Haji’s declarations of hibah since 2014 have not been in accordance with the Tabung Haji Act 1995 as its assets do not exceed its liabilities, said Minister in the Prime Minister’s Department Mujahid Yusof Rawa. 

He said two conditions must be met before hibah payments can be made – the assets can’t be less than liabilities and there must be distributed profits. 

He also said the declaration and payment of hibah last year had contravened the act. 

He said last year’s accounts tabled in Parliament today showed that it had RM70.3 billion in total assets, with total liabilities of RM74.4 billion, indicating a deficit of RM4.1 billion as of December 31 last year. 

“In view of Tabung Haji’s current situation, a comprehensive turnaround plan is needed to restore its balance sheet. 

“That is precisely what the new team has done,” he told reporters at the Parliament lobby today.

According to the Tabung Haji website, hibah refers to a “gift” declared by the body based on its financial standing for the current year.

Mujahid also said a special purpose vehicle (SPV) will be established this month to take over, rehabilitate and maximise the recovery of Tabung Haji’s underperforming assets.

An SPV is a subsidiary of a company that is bankruptcy remote from the main organisation.

Mujahid said the cabinet had given the plan its full support and endorsement and hoped that Tabung Haji’s financial position could be stabilised and people’s confidence in it restored. 

“To ensure Tabung Haji’s long-term sustainability and resilience, the government has decided to place it under the administrative supervision of Bank Negara from January 1 next year,” said Mujahid. 

Mujahid said he was confident that tangible results would be apparent by next year and that Tabung Haji will get itself “back on track”. 

On November 30, Tabung Haji lodged two police reports against former chairman Abdul Azeez Abdul Rahim, former chief executive officers Ismee Ismail and Johan Abdullah, and four senior management personnel over their alleged misconduct in relation to the pilgrims’ fund’s financial affairs. – December 10, 2018.

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Comments

  • Again, Muslims being screwed by their fellow Muslims.

    Posted 5 years ago by Luke Skywalker · Reply

    • But many pakciks and makciks don't understand because the thieves and religious bigots like Hadi and Zahid will lie that it's all the non-Malay faults. Otak semua sudah rosak.

      Posted 5 years ago by Jackal Way · Reply

  • Now, this 'truth' is something I would like to hear during the coming Friday's prayer sermon from the mosques. When my spouse was the HR and Office administrator of a large law firm in KL, TH was invited to the office to make it easier for Muslim staff to save for their Haj. What a let down. This deficit will eventually be settled by the non Muslims money from the income tax.

    Posted 5 years ago by Citizen Pencen · Reply

  • Being confident that 'tangible results would be apparent by next year and that TH will get itself " back on track" without explaining how, does not help much. A hole of a few billion is not easy to cover. Since the "hibah" is from unlawful source, will it affect the Haj or Umrah with that source of money? Since the money source is suspect, why not give an option for those who wish to return that money to TH.

    Posted 5 years ago by Citizen Pencen · Reply