Lembaga Tabung Haji usually declares its dividends in January but in recent years, it has been dipping into its reserves for the annual payout. – The Malaysian Insider file pic, January 24, 2016.Pilgrims’ fund Lembaga Tabung Haji must disclose whether it has made enough profit in 2015 to pay dividends to its nearly nine million contributors this year, Parit Buntar member of parliament Datuk Dr Mujahid Yusof Rawa said today.
Mujahid said Clause 22(2)(i) of the Tabung Haji Act stated that the pilgrim fund’s contributors could not receive dividends if its assets were valued lower than its liabilities.
He added that the fund’s tendency of dipping into its reserves to pay out dividends since 2012 has raised alarm bells.
“Tabung Haji should have declared its dividends on January 22, just like last year, yet it has not done so.
“Even though its management has until March to do so, we are very worried about Tabung Haji’s financial position and whether it can weather withdrawals by contributors,” said the Amanah vice-president in a statement.
Mujahid said Tabung Haji’s financial statement revealed that between 2012 and 2014, it had spent 107% more than the profits it earned to pay out dividends and bonuses.
For instance, in 2014, it made a profit of RM2.98 billion, but it paid out RM3.3 billion in dividends, said Mujahid.
“This practice would threaten Tabung Haji’s reserves and pressure it to liquidate its assets. How did the board members allow this to happen?”
He also questioned what would happen if the 5% of Tabung Haji’s contributors who owned 75% of the deposits decided to withdraw their contributions at this stage.
He said the 5% made up nearly RM43.4 billion out of its RM57.9 billion deposits and if they withdrew their deposits, Tabung Haji would be left with just RM14.5 billion.
Mujahid said the people’s trust in the country’s institutions and financial system would be destroyed should the government be forced to bail out Tabung Haji.
Tabung Haji chairman Datuk Abdul Azeez Abdul Rahim could not be reached for comments. – January 25, 2016.
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