Govt to dispense RM10.3 bln to save Tabung Haji, Najib calls for probe
KUALA LUMPUR:- Urusharta Jamaah Sdn Bhd today said the government will bear RM10.3 billion premium to ensure the financial health of Lembaga Tabung Haji (LTH) is restored as part of the rescue and restructuring plan of the pilgrimage fund.
The unit, which is a wholly owned by the Finance Ministry, completed the transfer of non-performing assets valued at RM9.63 billion held by LTH in December last year, due the fallout from the financial mismanagement and wrongdoings by the previous management.
The transfer was done from LTH to UJSB in exchange for RM19.9 billion, consisting of two tranches of sukuk totalling RM19.6 billion, namely RM10 billion of seven-year sukuk and RM9.9 billion of Islamic redeemable convertible preference shares (RCPS-i) as well as RM300 million in cash payable to LTH.
“The difference of RM10.3 billion between the consideration of RM19.9 billion and RM9.63 billion market value of assets is to be borne by the government to ensure that the financial health of LTH is restored,” the unit said in a statement.
Explaining on the assets transferred, UJSB said it consists a mixture of listed equity holdings, properties and one unlisted plantation asset.
The property assets transferred to UJSB include 0.63ha of land at Tun Razak Exchange (TRX).
The land was purchased by LTH at RM188.5 million or RM2,760 psf, significantly higher than that was paid for by 1Malaysia Development Bhd (1MDB), at only RM75 psf (or RM5.1 million for 0.63ha).
UJSB then purchased the TRX land from LTH at RM400 million or RM5,856 psf, which does not reflect the actual market value of the said land.
The huge difference between the market value and the purchase value of the land (95% premium over market value), together with all the other assets acquired by UJSB, was needed to ensure the successful rescue and restructuring plan of LTH.
Overall, UJSB will bear significant losses as a result of impairment charges estimated at more than RM10 billion for the assets acquired from LTH.
The TRX land transaction itself will result in an impairment charge of RM195 million.
“With the transfer of assets now completed, UJSB will continue with its mandate and purpose, which is to carry out the rehabilitation and restructuring of assets under its care; to maximise asset recovery value; and to redeem all monetary instruments issued by UJSB and subscribed by LTH in a timely manner.”
Commenting on the matter, former prime minister Datuk Seri Najib Tun Razak said that the Pakatan Harapan government still did not give an explanation what was the previous government’s fault that needed the bail out.
“The Pakatan government hired a foreign auditor to audit Tabung Haji account and alleged there were RM4.1 billion deficit at the end of 2017, even though the National Audit Department said there was no deficit.
“There is also no explanation on why the RM4.1 bilion deficit in 2017 increased to RM13.7 billion, that required a RM17.8 billion bailout last April,” he said in his Facebook post.
Najib then urged the government to refer the matter to the Public Accounts Committee (PAC) to investigate the supposed losses suffered by Tabung Haji.
“Why not even set up a Royal Commission of Inquiry to probe the matter? I’m sure a scandal worth RM17.8 billion warrants it,” said the Pekan MP.
By Irman Hashim
