This article first appeared in The Edge Financial Daily on March 27, 2019

KUALA LUMPUR: Special purpose vehicle (SPV) Urusharta Jemaah Sdn Bhd, set up by the ministry of finance (MoF) to manage Lembaga Tabung Haji’s underperforming assets, has not liquidated any of the assets, said Minister at the Prime Minister’s Department Datuk Seri Dr Mujahid Yusuf Rawa.

In the Dewan Rakyat yesterday, Mujahid said the SPV’s purpose is to ensure the continuing operations of the assets and also to maximise the asset recovery value.

“The SPV is to undertake the rehabilitation of the assets, through ‘warehousing’ and restructuring strategies. Until now, none of the assets transferred from Tabung Haji to the SPV have been liquidated,” said Mujahid.

Urusharta Jemaah acquired Tabung Haji’s underperforming properties and equities in exchange for RM10 billion in non-tradable sukuk, and RM9.9 billion in Islamic redeemable convertible preference shares (RCPS-i), as part of its restructuring plan.

At the time, Tabung Haji group managing director and chief executive officer (CEO) Datuk Seri Zukri Samat said the fund can “hopefully” see the rehabilitation of the assets completed by the seventh year.

Exchanging its RM10 billion non-performing assets for RM19.9 billion worth of non-tradable sukuk and RCPS-i is seen to help remove the pilgrim fund’s massive impairments on its assets.

It is also the SPV’s mandate to redeem all of its financial instruments currently held by Tabung Haji, said Mujahid. The sukuk has a seven-year tenure. The RCPS-i has no maturity or dividend.

In the Dewan Rakyat, Awang Hashim [PAS-Pendang] asked Mujahid whether the latter is able to reveal the CEO and directors on the Urusharta Jemaah’s board.

To opposition lawmakers’ disappointment, Mujahid did not reveal the names, merely saying the board of directors comprises MoF officials and an “experienced” independent director, whereas the CEO is from the MoF Inc.