PETALING JAYA: The 2017 Auditor-General’s (A-G) Report today revealed that pilgrims fund board Tabung Haji (TH) failed to record an asset impairment of RM227.81 million in three subsidiary companies and three associate companies, especially its investment in associate company TH Heavy Engineering Bhd amounting to RM164.58 million.
The A-G added that TH’s policy on reporting the impairment of assets was inconsistent.
The policy was changed every year while, in the financial year ending Dec 31, 2017, it was even changed twice.
TH entered the limelight when the fund’s new management lodged police reports against seven former senior management officers over past financial transactions made by them.
TH alleged in one report that RM22 million from Yayasan Tabung Haji (YTH) was spent on activities with political inclinations, which contravened the memorandum and articles of association of the charitable body.
In the second report, TH alleged that three ex-senior officers misrepresented and withheld material information related to TH’s sale of its 95% shares in PT TH Indo Plantations.
The Federal Land Development Authority (Felda) meanwhile was reported to have suffered a net loss of RM5.73 billion last year against a loss of RM251.24 million in 2016.
Quoting the agency’s financial statement, the report said at the group level, the 2017 net loss was RM4.85 billion compared to RM729.60 million the previous year, it said.
It said Felda’s net current liabilities last year amounted to RM643.93 million with 2016 net current assets standing at RM343.17 million.
The group reported net current liabilities at RM27.03 million while 2016 net current assets stood at RM1.234 billion.
“The cash flow from operations of Felda and its group also suffered deficits totalling RM1.20 billion (2016: RM1.16 billion) and RM503.49 million (2016: RM578.54 million), respectively,” the report added.
Economic Affairs Minister Mohamed Azmin Ali has said the Pakatan Harapan government will table a white paper on Felda’s RM8 billion debt next week.
He said Putrajaya was concerned about the critical cash flow in Felda and was looking at ways to reduce the debt.