ERNST & Young (EY) today said it was not Tabung Haji’s (TH) auditor nor had it issued any “audit report” on the pilgrimage fund’s financial statements. 

In a statement, the accounting firm said it did not review TH’s income statements nor was it involved in the valuation of TH and its subsidiaries’ assets and liabilities. 

EY was making this clarification in reference to the various media reports today that named it as the author if the audit report on TH. 

On the contrary, as stated in its reports to the Directors of TH, EY said it was engaged by the Directors of TH to report on whether the pro forma balance sheets as at December 31, 2015; December 31, 2016; and December 31, 2017 had been properly prepared based on the applicable criteria. 

“The directors of TH prepared the pro forma balance sheets solely to illustrate the impact of reporting TH’s investments in equities, securities and properties at realisable asset value instead of historical costs on its balance sheets.”

 EY did not perform an audit on the financial information used in compiling the pro forma balance sheets,” it said.

The accounting firm said it reported that the adjustments made were appropriate solely for the purpose of illustrating the impact of reporting TH’s investments in equities, securities and properties at realisable asset value on TH’s balance sheets.

“EY’s reports could not have been relied upon for the purpose of dividend declarations by TH on February 4, 2016; February 3, 2017; and February 7, 2018 for the financial years ended December 31, 2015, 2016 and 2017 respectively, as EY’s reports for the relevant years were only issued subsequent to the dividend declaration dates.

“EY issued its reports on September 30, 2016; July 12, 2017; and May 23, 2018 in respect of the pro forma balance sheets as at December 31, 2015, 2016 and 2017 respectively.

“At no time did EY opine on the appropriateness of the declaration of distributable profit as dividend pursuant to the Tabung Haji Act 1995.”

EY also wished to draw attention to Section 22 of the Tabung Haji Act 1995, which stipulates the conditions to be fulfilled by TH in relation to the declaration of distributable profit as dividend.  – Bernama, December 11, 2018.