KUALA LUMPUR (Feb 18): Lembaga Tabung Haji expects discussions with the Ministry of Finance (MOF) over the recovery of its assets currently held by Urusharta Jamaah Sdn Bhd (UJSB) and the redemption of sukuk to be finalised by the first quarter of 2025 (1Q2025).

The sukuk refers to the RM10 billion in sukuk and RM9.9 billion in Islamic redeemable convertible preference shares (RCPS-i) issued by UJSB and fully subscribed by Tabung Haji during the assets rehabilitation exercise of the pilgrimage fund in 2018.

On Tuesday, Minister in the Prime Minister’s Department (Religious Affairs) Datuk Seri Dr Mohd Na’im Mokhtar told the Dewan Rakyat that Tabung Haji is still "evaluating the best options", and assured the development will not affect its financial position. He did not specify which assets will be returned in his speech. 

“The government, through the Prime Minister’s Department (Religious Affairs), will ensure that the return of Tabung Haji’s assets from UJSB is carried out in an orderly manner, without any adverse implications for the fund’s financial position or its depositors," the senator said in response to a supplementary question from Datuk Idris Ahmad (Perikatan Nasional-Bagan Serai) during an oral question-and-answer session. 

UJSB, a special purpose vehicle (SPV) under the MOF, took over Tabung Haji's underperforming assets in 2018, valued at approximately RM9.7 billion at the time. 

In return, UJSB paid RM19.6 billion through two sukuk issuances in 2019, along with an additional RM300 million in cash, as previously highlighted in the Auditor General’s Report.

Of the transferred assets, 80% were equities, while the remaining 20% comprised properties. Among the assets transferred to UJSB were four Tabung Haji hotels: TH Hotel Kota Kinabalu, TH Hotel Bayan Lepas, TH Hotel and Convention Centre Alor Setar, and TH Hotel and Convention Centre Kuala Terengganu. These properties have since been rebranded under the Raia Hotel name.

In September 2023, Prime Minister Datuk Seri Anwar Ibrahim announced that the government would begin negotiations to return UJSB-held assets to Tabung Haji, following improvements in the fund’s management, governance, and financial performance.

The SPV has redeemed RM400 million of the RM19.6 billion sukuk it issued. Based on the outstanding sum of RM19.2 billion, the gap between the assets UJSB holds and the sukuk amounts to RM9.49 billion, as estimated through back-of-the-envelope calculations.

According to the Auditor General’s Report on the federal government financial statement for 2022, UJSB redeemed RM200 million worth of sukuk in January 2024.

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