KUALA LUMPUR: Former Tabung Haji (TH) chairman Azeez Abdul Rahim today dismissed an audit report by PricewaterhouseCoopers (PwC) on the pilgrim management fund’s financial position for 2017.
He said the PwC report had failed to take into account another audit report by Ernst and Young (E&Y) which had taken into consideration the current value of TH’s assets in subsidiary companies.
“Minister Mujahid Yusof Rawa said we breached the law by distributing dividends or ‘hibah’ when TH has a much higher liability compared with its assets.
“However they did not take into account E&Y’s report that had evaluated the asset value of all TH companies,” he told reporters when met at the Dewan Rakyat lobby, reffering to the minister in charge of Islamic affairs.
Azeez said TH’s financial reports tabled in Parliament every year did not take into account all current asset values as TH’s investments in its subsidiaries, joint ventures and associate companies had only been listed at their original cost.
“What the TH management did in the past does not amount to breaching the law.
“The Audit Department has also gone through TH’s financial report and has given us a clean sheet,” he added.
Azeez asked why Mujahid and the current TH management team had “picked on” the former team’s “mistake” and thrown accusations against it.
“It is irresponsible for the minister to make his statement without checking and looking into all facts. He should not have gone to the media and tried to confuse the 9.3 million TH depositors,” he said.
Yesterday, Mujahid, a minister in the Prime Minister’s Department, said TH had been paying dividends to depositors despite bearing liabilities that were significantly higher than its assets.
He added that TH had recorded asset strength of RM70.3 billion up till December 2017, but that its liabilities were at RM74.4 billion.
The 2017 Auditor-General’s (A-G) Report last week revealed that TH had 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, according to the report.
TH entered the limelight when the fund’s new management lodged police reports against seven former senior management officers, including Azeez, over past financial transactions.