KUALA LUMPUR: Lembaga Tabung Haji has denied allegations that it is facing a financial squeeze, claiming it is able to return all of its depositors’ fund if necessary.
In a briefing yesterday, group managing director Datuk Johan Abdullah stressed that the pilgrimage fund has a realisable asset value of RM64.74 billion, compared to liabilities to depositors of RM59.33 billion. Tabung Haji, he said, would still have a surplus of RM1.44 billion if it returns all its depositors’ fund.
This follows a statement by Pandan member of parliament Mohd Rafizi Ramli on Tuesday, claiming that the pilgrimage fund is in a deficit position of RM3 billion, due to investment losses.
According to Mohd Rafizi, investment losses amounting to RM3.09 billion in the financial year ended Dec 31, 2015 (FY15) means Tabung Haji’s depositors’ fund stood at RM56.24 billion, compared to RM59.33 billion deposits collected.
“This [analysis] is incorrect,” Johan said at Tabung Haji’s head office in Kuala Lumpur yesterday. “Please do not politicise Tabung Haji.”
Speaking to the media, Johan stressed that Tabung Haji’s accounts were audited by the auditor-general (AG). According to Tabung Haji’s annual report, the AG stated on May 10 that the accounts show a true picture of its financial health.
In addition, the group managing director reiterated that Tabung Haji deposits are guaranteed by the government under the Lembaga Tabung Haji Act 1995.
“In the 53 years of Tabung Haji’s existence, we have never invoked that guarantee,” Johan said, adding that the fund is still able to return all funds without the government’s help, in the event of total withdrawal by all depositors.
Johan also stated that being in such a deficit means Tabung Haji would not be able to pay dividends in accordance with the act. “If you are against the act, then you would be in trouble,” he said.
For 2015, Tabung Haji paid a 5% dividend to depositors plus an additional 3% to those who have not performed their haj.
In response to a reported suggestion by Mohd Rafizi for Tabung Haji to make an interim disclosure of its financial standing, Johan said Tabung Haji has “no issue with doing so, in principle”.
“But one must be mindful of the [legislative] framework that we operate under,” he added, saying no matter what Tabung Haji does it must be in compliance with the act.
Johan said the RM3.09 billion figure represents unrealised losses due to the accounting requirement to mark asset valuation to market prices.
This means there is no realised loss, “unless we sell [these investments],” he added, saying Tabung Haji is a long-term investor.
He declined to disclose which investments in particular led to the losses, saying the fund still outperformed the benchmark FBM KLCI.
For FY15, Tabung Haji recorded RM4.08 billion in revenue, up 37% year-on-year. Pre-tax profit came in at RM3.54 billion, 18.7% higher than FY14, according to its annual report.
Its total assets as at Dec 31, 2015 stood at RM60.19 billion, versus RM734.2 million in total liabilities.
Johan stated that the fund’s current ratio, which measures liquidity by comparing short-term assets against short-term liabilities, remains in positive territory. He declined to give a figure.
When asked whether the investment losses have sparked a rethink in Tabung Haji’s investment strategy, Johan said the rebalancing of its portfolio is an ongoing process.