KUALA LUMPUR (Dec 10): Lembaga Tabung Haji (TH) effectively paid dividends (hibah) using depositors' savings, said Malaysiakini, quoting a financial position review for 2017 by independent audit firm PriceWaterhouseCoopers (PwC) on the matter today.
The report said the pilgrimage fund structured two deals to give the impression that these dividends were coming from profits. The financial position review was tabled in the Dewan Rakyat today.
For the first deal, TH's shares in Bank Islam Malaysia Bhd (BIMB) were sold, to show profit before being repurchased, which also incurred brokerage fees.
For the second, its subsidiary companies declared high dividends although the amount was never fully paid, said Malaysiakini.
"Although the transactions appear commercial, we understand that the intention was to enable TH to report higher profits for the purpose of distribution to the depositors.
"This would only lead to the hibah being funded out of the cash from the depositors' savings funds, and not the profits declared," PwC said in the financial position review.
According to Malaysiakini, in the BIMB deal, TH sold RM2.551 billion shares to generate a gain of RM553 million. However, in the same year, it spent RM2.688 billion buying back the same shares.
"Effectively, the sale of the shares in BIMB did not result in cash benefit to Tabung Haji, other than gain at TH level, which increased the profits of Tabung Haji for the financial year 2017 by RM553 million," said the financial position review.
In the report, PwC reportedly interviewed the TH's equity traders, who admitted that the sale and repurchase of BIMB shares were only to show profit temporarily, so as to justify TH's dividend payments.
"Based on our discussion with the equity trader of Tabung Haji, he confirmed that the sale and repurchase of the BIMB shares were done in order to realise the upside value of BIMB shares, in order to recognise the profits needed to meet the bonus distribution target for 2017," read the document.
PwC added that the sale and repurchase of the shares were not disclosed in TH's financial statement, as required under the financial reporting standards.
It added that the fund used similar modus operandi in 2016 to give the impression of profit.
With regard to dividends declared by TH's subsidiaries, Malaysiakini's report quoted the document revealing that RM510 million was declared by the companies, but RM222 million remains unpaid.
Last year, Tabung Haji declared dividends of 4.5% and a bonus of 1.75%.
http://www.theedgemarkets.com/article/tabung-haji-paid-dividends-using-depositors-savings-%E2%80%94-report
Created by savemalaysia | May 14, 2024
Created by savemalaysia | May 14, 2024
Created by savemalaysia | May 14, 2024
Created by savemalaysia | May 14, 2024
Created by savemalaysia | May 14, 2024
Created by savemalaysia | May 14, 2024
Created by savemalaysia | May 14, 2024
Created by savemalaysia | May 14, 2024
Me deposited at TH. Money still there plus dividen and bonus. Where did TH took depositor money to pay div?
2018-12-10 19:41
Santaitrader, the article say, manipulation in financial statement. meaning the cash that appear in your statement is not true...like money game, they show you those bonus, but those bonus are from depositer money....if all depositer want to withdraw, then the dirty trick will burst...
2018-12-10 19:47
nevermind fake or not fake ...... Pakatan Haramjadah can rescue all using hantam sajalah tecnique kikiki
2018-12-10 21:18
Already expects this. Alot of TH investment has collapsed, yet still can pay generous dividend. Its like money falling from sky. It is indeed a national level ponzi scheme
2018-12-10 21:56
if u look at how th invest in stocks, their stockpicks, u will find it very weird. Now I guess i know why.
2018-12-10 22:49
Most of TH so called investment in equity is reckless and risky. Short of treating the market as a casino. That's why incurred so much paper loss.
2018-12-10 23:59
As a depositor, my money still there plus good div and benefit. I can withdrawn anytime I wish. Where got the problem?
2018-12-11 08:20
well what it means is if more ppl withdraw, th may not be able to pay the depositor.. as their liabilities > asset...
2018-12-11 09:14
Owh. I see. Wait this year div. How much declare. Maybe feb next year. If no good better put in bourse.
2018-12-11 09:26
the minister shld have stopped at the deficit.
now bimb is gonna have selldown.
lol...........
2018-12-11 10:11
All ponzi scheme depositor also happy as long as can receive the dividend. Wait till they default then only cry.
Santaitrader As a depositor, my money still there plus good div and benefit. I can withdrawn anytime I wish. Where got the problem?
2018-12-11 10:19
lizi
crook at TH, harapkan pagar, pagar makan padi.
2018-12-10 19:35