Tabung Haji incurred RM933 million in paper loss through FGV, says Rafizi

Rafizi Ramli speaks during a press conference at the National Oversight & Whistleblowers Centre in Sungai Besi today. He revealed that Lembaga Tabung Haji lost on paper RM933 million through investments in Felda Global Ventures Holdings Bhd. – The Malaysian Insider pic by Kamal Ariffin, February 16, 2016.Lembaga Tabung Haji has lost on paper RM933 million (see graphic below) through investments in Felda Global Ventures Holdings Bhd (FGV) but still retained shares in the listed plantation company despite revenue decline, PKR's Rafizi Ramli said today.

Rafizi said Tabung Haji's decision not to dispose of the shares pointed to political interference, since FGV was Prime Minister Datuk Seri Najib Razak's brainchild.

This suggested that the fund's priority was not to protect the interest of its depositors, but the government, he said

“Tabung Haji's decision not to take any action to protect depositors' funds even as its investment in FGV was incurring losses is not the normal professional conduct of an international investment institution,” he told a press conference in Sungai Besi.

He said that from 2012 to 2015, Tabung Haji spent an average of RM1,380,074,233 to purchase shares from FGV.

It sold some of its shares, earning an average of RM7,621,492.

But as of December 21, 2015, it retained 284,165,100 shares worth just RM454,157,440, said Rafizi.

This pointed to a paper loss amounting to RM933,538,285, he said.

Rafizi said it was peculiar for Tabung Haji to retain the shares, when other institutions that had invested in FGV, such as the Employees Provident Fund and Retirement Fund Incorporated, had been disposing them steadily from 2012 to 2015.

“The last time Tabung Haji sold its FGV shares was on July 12, 2012. It disposed of 750,000 shares, and this was during the early days of FGV's listing.

“Any FGV shares sold afterwards was done by Tabung Haji's fund managers, Maybank, AMInvest or CIMB, involving a miniscule amount that did not affect Tabung Haji's overall position in FGV,” he said.

When it was first listed, FGV's shares were each worth RM4.55.  They are now worth RM1.60.

“The decision to hold on to its FGV shares, which had resulted to losses amounting to RM 933 million, is certainly closely linked to FGV's position as a major initiative of the Najib administration,” said Rafizi.

“In any normal circumstances, an investment institution would not act the way Tabung Haji has.”

The first step to end such “political interference” was to replace chairman Tan Sri Abdul Azeez Abdul Rahim with someone who was more qualified, said Rafizi.– February 16, 2016.