- December 11, 2018
- Posted by: admin
- Category: Daily News
- Lembaga Tabung Haji did two suspicious transactions that helped cook up its 2017 profits to enable it to pay dividends that it would otherwise not be allowed to do.
- Because the profits were not real, the pilgrims fund dipped into depositors’ savings to pay the dividends. These were some of the key findings of an audit done by PricewaterhouseCoopers (PwC) that was tabled in Parliament on 10 Dec 18.
- The independent report entitled “Financial Position Review of TH” by PwC showed that the troubled pilgrims fund made a gain of MYR553mn from one of the deals, namely the disposal of Bank Islam Malaysia Bhd (BIMB) shares in 2017. The shares were subsequently bought back by Tabung Haji.
- TH sold MYR2.551bn in shares, only to spend MYR2.688bn to buy back the same shares. TH’s shares in Bank Islam Malaysia Bhd (BIMB) were sold to show profit before being repurchased, which also incurred brokerage fees.
- In the report, PwC reportedly interviewed the TH’s equity traders, who admitted that the sale and repurchase of BIMB shares were only to show profit temporarily, so as to justify TH’s dividend payments.
- PwC cited the dividend income received by Tabung Haji from its subsidiaries totalling MYR510mn in 2017 as the second deal. However, out of the total; PwC said only MYR125mn had been paid by the subsidiaries.
- The dividend receivables stood at MYR436mn as at 31 Dec 17.
- TH will offload nearly MYR20bn of underperforming assets to a Ministry of Finance (MOF) company, and the central bank will inject MYR10bn in short-term loans to improve its liquidity, the fund said on its website.
- As part of its restructuring plan, troubled Lembaga Tabung Haji (TH) will be put under the supervision of the central bank from Jan 19 as part of efforts to win back the trust of depositors. It is currently managed by the Prime Minister’s Office.
- Meanwhile, the Malaysian Anti-Corruption Commission has not opened investigations into pilgrims’ fund Tabung Haji (TH), said chief commissioner Mohd Shukri Abdull.
- He said MACC is only studying the PricewaterhouseCoopers audit report on TH that was tabled in parliament.
- “We will probe if the alleged offence is under the MACC Act, like corruption and abuse of power.
External Link: https://www.themalaysianinsight.com/s/117899