TH Posts Almost Rm13 Bln In Losses From 14 Investments, Seven of Which 100 Pct Losses - Amir Hamzah

KUALA LUMPUR, Aug 11 (Bernama) -- Tabung Haji (TH) incurred losses of nearly RM13 billion through 14 problematic investments, seven of which suffered losses of 100 per cent, said Finance Minister II Datuk Seri Amir Hamzah Azizan.

The largest loss was from TH’s investment in Al-Rawda Real Estates Development & Project Management Co Ltd, a Saudi Arabia-based property development and project management company, he noted.

The minister said the losses of almost RM13 billion comprised RM10.2 billion borne by the government through a bailout carried out via Urusharta Jamaah Sdn Bhd (UJSB) in 2018, as well as RM2.6 billion in impairment losses borne by TH between 2018 and 2025 for investments still being managed.

“More seriously, seven of the 14 investments suffered 100 per cent losses. Not partial losses, but total losses,” he said during the winding-up briefing session of the special Dewan Rakyat sitting to debate the Royal Commission of Inquiry (RCI) report on TH today.

The report was earlier tabled by Minister in the Prime Minister’s Department (Religious Affairs) Dr Zulkifli Hasan.

Amir Hamzah said the Al-Rawda investment represented the largest loss among TH’s problematic investments, involving lease agreements for the period from 2015 to 2017 in which TH paid 1.4 billion Saudi riyals, or about RM1.5 billion, to an intermediary to lease four hotels in Makkah and Madinah to accommodate pilgrims.

According to him, the company concerned was supposed to operate the four hotels and pay TH a rental amount of 2.49 billion Saudi riyals, but the payment was not made, while the substantial investment was only guaranteed personally through promissory notes.

Al-Rawda defaulted on its rental payments starting the first quarter of 2019, eventually forcing TH to provide for a full impairment loss amounting to RM1 billion in 2024, he said.

-- BERNAMA