KUALA LUMPUR (Dec 10): Lembaga Tabung Haji (TH) will set up a special purpose vehicle (SPV) to take over and rehabilitate its underperforming assets.
Minister in the Prime Minister's Department Datuk Dr Mujahid Yusof Rawa said TH's 2017 accounts showed it has total assets of RM70.3 billion and total liabilities of RM74.4 billion or 94.4 sen in assets for every ringgit of liabilities.
During a press conference at Parliament today, Mujahid said TH has been paying out dividends since its financial year 2014, without meeting the requirement that its assets exceed its liabilities and that there must be distributable profits.
"TH did not have enough assets to cover its liabilities and they still declared hibah since 2014. I leave it to your imagination to think how they had the money to continue its payouts," he said.
Meanwhile, he said the restructuring of TH has been ongoing since July, with the changes made to the fund's management team and leadership.
He added that PricewaterhouseCoopers has also been employed as TH's auditors.
"In view of the current situation of TH, a comprehensive turnaround plan is needed to restore its balance sheet. That is precisely what the new team has done," he said.
He gave some brief details about the restructuring plan for the fund, which includes the setting up of an SPV to take over and rehabilitate TH's underperforming assets.
He added that more details on the plan will be revealed in another session tomorrow. "The cabinet had discussed the turnaround plan thoroughly and given our full support and endorsement to the plan, so that TH's financial position can be regularised and restore the rakyat's confidence," he said.