Tabung Haji dividend dives to 1.25% for 2018

Diyana Ibrahim Diyana Ibrahim Updated 7 years ago · Published on 5 Apr 2019 4:16PM · 4 Comments

Tabung Haji's accounts were manipulated in the past to enable income distribution in excess of its true financial situation, says Minister in the Prime Minister’s Department Dr Mujahid Yusof Rawa. – The Malaysian Insight file pic, April 5, 2019.

TABUNG Haji today announced a dividend of 1.25% for 2018, the lowest rate ever in the last 25 years.

The payout to be distributed among the fund’s 9.3 million depositors will amount to RM913 million, Minister in the Prime Minister’s Department Dr Mujahid Yusof Rawa announced today.

He said the lower dividend was because of the pilgrim fund’s current financial situation.

“Abuse of power in the fund’s administration before this and manipulation of the accounts to continue paying out dividends despite a deficit have caused this situation.”

In 2017, Tabung Haji announced a rate of 4.5%, and a 1.75% special dividend for depositors yet to perform the haj.

The announcement of the dividend comes amid further news that the fund suffered even more losses than previously disclosed.

Federal lawmakers were told at a special briefing yesterday that Tabung Haji had suffered losses of up to RM10 billion, which had been kept off the books.

Mujahid today admitted that the dividend for 2018 was the lowest in the fund’s history, but urged depositors to be patient until Tabung Haji’s rehabilitation is complete.

He said the fund was on the path to recovery, as it had recorded assets worth RM76.5 billion at the end of last year, compared to its liabilities of RM75.5 billion.

The fund’s income for 2018 was also RM4.2 billion and its profits for distribution, RM2 billion.

This put the fund in better standing compared to 2017, when it had RM74.4 billion in liabilities compared with RM70.3 billion in assets, causing a deficit of RM4.1 billion.

As such, Tabung Haji was able to legally declare dividends under its governing act, Mujahid added.

To help the fund ensure dividends for depositors, he also said the government was injecting a maximum of RM17.8 billion over a 10-year period. This comprises RM500 million next year and subsequently, RM1.73 billion each year, until all sukuk is redeemed.

The sukuk of RM19.9 billion is to be issued by special purpose vehicle (SPV), Urusharta Jemaah Sdn Bhd, in exchange for Tabung Haji’s loss-making assets, which were transferred to the SPV.

The transfer of loss-making assets worth RM19.9 billion was completed at the end of last year as part to the fund’s restructuring plan.

In exchange, Urusharta Jamaah is to issue a RM10 billion seven-year Sukuk and RM9.9 billion in Islamic redeemable convertible preference shares.– April 5, 2019.

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Comments

  • PH get ready with all the facts and figures. Some of 9.3m depositors and opposition are going to put blame you. Can you prove TH has been robbed and present is simple charts and plain language?

    Posted 7 years ago by Concerned Citizen · Reply

  • Amazing, lost money and still can pay dividends

    Posted 7 years ago by Yoon Kok · Reply

  • Already this dividend payout is to help the depositors. There should rightfully be no dividends as LTH is losing money due to the brilliant management of the bunch of thieves and crooks who were in charge previously

    Posted 7 years ago by Mike Mok · Reply

  • The dividend is a realistic figure after years and years of accumulated manipulation of losses by the BN administration - purely done to keep the people happy.. at all costs...
    The BN dumno Government are liars, and can never be trusted again..
    Even after losing the GE14, they continue with their lies and continue the manipulate the innocent citizens, especially the rural and kampung folks!! How sad.. All because they want power and money..

    Posted 7 years ago by Kampung Boy · Reply