TH Needs To Reduce Reliance On UJSB Sukuk Income – Bentong MP
KUALA LUMPUR, Aug 11 (Bernama) -- The government has been asked to detail steps to reduce Lembaga Tabung Haji's (TH) reliance on income from Urusharta Jamaah Sdn Bhd's (UJSB) sukuk, which, according to the Royal Commission of Inquiry (RCI) Report, contributes nearly 26 per cent of the institution's annual income.
Bentong MP (PH) Young Syefura Othman said that this dependency poses a financial risk that still needs to be managed, and the government therefore needs to clarify measures relating to the early redemption of the sukuk.
"We want TH to stand strong because of the strength of its portfolio and governance," she said while debating the minister's briefing regarding the RCI Report related to TH and the efforts and actions taken to restore the financial position of the institution at the Special Sitting of the Dewan Rakyat today.
The briefing was delivered by the Minister in the Prime Minister's Department (Religious Affairs), Dr Zulkifli Hasan.
Young Syefura also requested the government to disclose the total amount of losses or depreciation arising from the 14 previous investment decisions identified by the RCI for forensic auditing due to significant asset depreciation.
According to her, the investments in question involve TH Plantations Bhd, TH Properties, FGV Holdings, as well as several other companies and investments. She also questioned how much could still be recovered and the status of the forensic audit.
She said that if there are elements of negligence, abuse of power, or breach of trust in the investments, the responsible parties need to be identified and appropriate action taken.
Meanwhile, she suggested that the financial and investment supervision of TH be strengthened through greater involvement by institutions such as Bank Negara Malaysia and the Securities Commission Malaysia.
She also suggested that every major investment undergo an independent risk assessment and a stringent due diligence process, while the appointment of board members and top management should be based on the "fit and proper" principle.
-- BERNAMA