KUALA LUMPUR (Feb 10): Lembaga Tabung Haji has rejected claims that it resorted to “creative accounting” in preparing its financial statements, saying they were drawn according to standards underlined by the Malaysian Accounting Standards Board.

Tabung Haji noted that Auditor General (A-G) Tan Sri Ambrin Buang had on Feb 3 confirmed that the National Audit Department found the fund’s accounting policies to be consistent with the concept of prudence.

“Therefore, there is no issue of creative accounting by Tabung Haji as touted by certain parties,” the fund said in a statement today.

Tabung Haji recently courted controversy after a letter from Bank Negara to the fund warned of its reserves slipping into negative territory, as it had 98 sen in assets for every ringgit in liability, and that the fund would be unable to pay out dividends to its 9 million depositors this year, if the situation was not resolved.

Tabung Haji had acknowledged the letter, but said if its investment portfolios were taken into account, its assets outweighed its liabilities.

On Feb 4, Tabung Haji announced a trimmer 2015 dividend of 5% for its depositors compared to a 6.25% payout declared in 2014, along with a higher bonus of 3% for depositors who have yet to perform the Muslim pilgrimage, compared to 2% in 2014.

Tabung Haji’s assertion comes on the heels of criticism levelled against the fund by PKR vice president Rafizi Ramli, who said yesterday (Feb 9) that the fund’s ability to pay out dividends in 2015 is by no means a measure of stability of its financial standing.

Rafizi said Minister in the Prime Minister's Department Datuk Seri Jamil Khir Baharom's announcement that Tabung Haji had made a profit of RM3.53 billion was also misleading, as it did not take into account the losses incurred from its shares and securities.

Tabung Haji, however, insisted that its financial standing is stable, saying its accumulated profit is in positive territory, even after its recently announced 5% dividend payout.

The fund said its accumulated profit currently stands at RM609 million, more than double the RM293 million recorded at the end of 2014.

“This effort is a preliminary move and is in accordance with Bank Negara’s recommendation to Tabung Haji to revise its existing reserve policy.

“It should be stressed here again that the 2015 bonus was paid according to the current annual profit and never used (the) reserves,” it added.

Tabung Haji said that since Feb 8, the fund has credited RM3.2 billion worth of dividend payouts to 8.85 million depositors.