MP asks how govt plans to honour RM27.5 billion sukuk to rescue Tabung Haji

 

Hassan Abdul Karim (PH-Pasir Gudang) said the issue was particularly important following the transfer of RM19.93 billion worth of Tabung Haji assets to UJSB as part of the institution’s restructuring in 2018.

KUALA LUMPUR: The government must provide clear assurances to 10 million depositors of Tabung Haji on how it plans to honour a RM27.5 billion sukuk issued by Urusharta Jamaah Sdn Bhd (UJSB), the Dewan Rakyat was told.

Hassan Abdul Karim (PH-Pasir Gudang) said the issue was particularly important following the transfer of RM19.93 billion worth of Tabung Haji assets to UJSB as part of the institution's restructuring in 2018.

He questioned the amount of cash actually received by Tabung Haji from the transaction, saying the Royal Commission of Inquiry (RCI) report found that only RM500 million had been received at the time covered by the report.

UJSB is an asset management and investment company wholly owned by Minister of Finance Incorporated. Formed in December 2018, it acts as a special-purpose vehicle to take over underperforming assets from Tabung Haji to help rescue and restructure the institution's finances.

"The RCI found that the cash received by Tabung Haji so far was only RM500 million, compared with RM19.93 billion in assets transferred to UJSB.

"So the question of the sukuk arises. Tabung Haji received RM500 million in cash, while the rest was in the form of debt papers or sukuk," he said during a special sitting of the Dewan Rakyat to debate the RCI report on Tabung Haji today.

Hassan said UJSB had issued two series of sukuk to replace the assets transferred from Tabung Haji, with the total obligation amounting to RM27.5 billion.

He also sought clarification from the government on the repayment of the first series, which matured on May 29, and the preparations to meet the obligations of the second series, which is due to mature in 2036.

"Has the government paid anything to Tabung Haji in cash, shares or assets?

"What preparations has the government made to give confidence to the 10 million depositors that their money, amounting to more than RM90 billion, is safe?" he asked.

The RM27.5 billion sukuk obligation has been identified as a major long-term financial commitment arising from the restructuring.

The first series, which matured in May, was subsequently addressed through refinancing involving a new RM11.5 billion sukuk, according to recent reporting.

Hassan said the government needed to give depositors confidence that their savings would remain secure and that the obligations could be met when they wanted to withdraw their money.

He also stressed that recovering Tabung Haji's losses should not stop at criminal investigations or prosecutions.

He called for investigations into those responsible for the institution's financial management during the period examined by the RCI, including its former chairman, chief executive officer, chief financial officer, board members and senior management.

"The people who need to be investigated should not be junior officers. The management of Tabung Haji, including its chairman, must be investigated collectively."

The Dewan Rakyat convened for a one-day special sitting to discuss the RCI report, with proceedings beginning at 10am, followed by a question-and-debate session.

The 211-page RCI report revealed governance weaknesses, including political interference, distribution of profits without adequate accounting for depreciation and declines in investment fair value.

It also found that TH should have recorded a net loss of RM1.4 billion in 2017, instead of the reported RM3.4 billion profit, had the Malaysian Financial Reporting Standards been fully applied. - NST