Mujahid’s report misleading, says ex-TH chairman

KUALA LUMPUR: The revelation that Lembaga Tabung Haji (TH) has RM4.1bil in total deficit as at the end of last year was inaccurate as it did not take into account another report which had valued its realisable asset value, said its former chairman.

Accusing Datuk Seri Dr Mujahid Yusof Rawa of misleading the public by accusing the pilgrimage fund of illegally paying dividends (hibah) to its depositors, Datuk Seri Abdul Azeez Abdul Rahim said the report by Ernst & Young (E&Y) had taken into account the value of its subsidiary companies, associates, joint-venture companies and real estate.

Citing E&Y’s report, Abdul Azeez said that in 2015, TH’s realisable asset value stood at RM64.7bil while its liabilities were RM63.3bil, giving it an excess asset of RM1.4bil.

For the 2016 financial year, he said TH’s realisable asset value was RM69.1bil while its liabilities were RM68.4bil, giving it an excess value of RM701mil.

In 2017, TH’s realisable asset value stood at RM74.7bil while its liabilities were RM74.4bil, giving it RM373mil in excess assets, he added.

“In this context, the Minister in the Prime Minister’s Department did not mention E&Y’s report.

“This means that the report (by Dr Mujahid) on Monday misled the public. In fact, it raises public anxiety,” he told reporters in Parliament lobby yesterday.

Abdul Azeez said the PricewaterhouseCoopers’s financial position review report distributed to lawmakers in Parliament on Monday had also included E&Y’s report indicating TH’s surpluses in its assets in 2015, 2016 and 2017.

PwC conducted the financial position review as at December 2017 because of Emphasis of Matter raised by the Auditor-General.

The National Audit Department audited the financial statements.

“Since 2015, TH had valued its assets at a realist value ( current market value) and for the past three years, based on reports verified by external audit firms, TH’s assets have exceeded its liabilities,” Abdul Azeez said.

“Therefore, TH paid its dividends in accordance to Section 22(3)(A) of the Tabung Haji Act and has not broken any law.”

Besides being audited by E&Y, Abdul Azeez said TH’s finances were also scrutinised by the National Audit Department, which had awarded the pilgrimage fund a certificate annually.

“Don’t bring TH into the political sphere. If you want to improve TH, please go ahead. Do whatever it takes to ensure the name of TH remains respectable.

“If you want to play politics, look for other means. Don’t touch TH.”

Abdul Azeez said it was perplexing that Dr Mujahid and the new TH top management were constantly looking for faults in the previous management.

“It is irresponsible for a minister to make a statement before conducting a detailed investigation,” he added.

Abdul Azeez said he was also ready to cooperate with the TH management and relevant authorities to uphold its reputation.

This means that the report (by Dr Mujahid) on Monday misled the public. In fact, it raises public anxiety. Datuk Seri Abdul Azeez Abdul Rahim