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Current Issue: Tabung Haji Issue

Autor:   •  June 1, 2019  •  Case Study  •  1,314 Words (6 Pages)  •  40 Views

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SECOND SEMESTER SESSION 2018/2019 (A182)

BWFF 3193 SEMINAR IN FINANCE

GROUP B

INDIVIDUAL ASSIGNMENT

CURRENT ISSUE: TABUNG HAJI ISSUE

SUBMITTED TO:

DR. FAIZAH BT ISMAIL

PREPARED BY:

IRSYAD BIN MOHD IMRAN (248496)

SUBMITTED DATE:

28 APRIL 2019


Tabung Haji Financial Issues

Tabung Haji is an Islamic Institution with an important role especially for Malaysian Muslim. Its function to manage various facilities for the welfare of the country’s hajj pilgrims in a comprehensive and systematic manner, ranging from the halal savings management, as well as business activities to provide additional value to depositors.

Recently, TH as an iconic Malaysian institution by achieving a various success in Hajj management as well as Islamic funds had been scratched where there is an issue regarding its financial condition, poor governance with its fund and others. Previously, in 2015, Bank Negara sent Tabung Haji a letter saying that Tabung Haji needs to manage its risk better because it had more liabilities than assets and concern about the practice of Tabung Haji where they distribute the dividend and bonus exceed the current amount of their profit. This means that they owe more money than they have.  At last, TH ignore the message because of its assumption which is TH not under BNM regulation. As of 5 December 2018, it’s estimated that Tabung Haji only owns 80 cents for every RM1 they oweThis means that if every Muslim wanted their money back from Tabung Haji today, they’d only get 80 cents for every RM1 they had put in - so they’d all lose 20% of their savings, and at the end, the issue regarding TH cannot be hold anymore.

Under the previous chairman of TH, Datuk Seri Abdul Azeez Abdul Rahim, former chief executive officers Tan Sri Ismee Ismail and Datuk Seri Johan Abdullah, as well as senior management staff, there are lot of controversies. In the same year of 2018, Lembaga Tabung Haji (TH) has lodged two police reports against its higher executive. The first report regarding the misuse of fund money under Yayasan Tabung Haji where funds over RM22mil were disbursed for activities with political inclinations and the staff in question are chief operating officer Datuk Adi Azuan Abdul Ghani, chief financial officer Datuk Rozaida Omar, legal adviser Hazlina Mohd Khalid and senior general manager for corporate services and real estate Rifina Md Ariff. The second report against Ismee, Hazlina and Rifina related to alleged misrepresentations and the withholding of material information involving TH’s 2012 sale of 95% shareholdings in PT TH Indo Plantations held by two of its subsidiaries to PT Borneo Pacific for US$910mil. (The Star Online, December 01,2018). Not long after that, a Straits Times report alleged that Tabung Haji faked its accounts to justify paying RM2.7 billion in dividends (hibah) in February 2018.

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