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Bonuses no proof of Tabung Haji’s financial position, says Rafizi

Tabung Haji's 5% annual bonus and 3% pilgrimage bonus is no guarantee that its financial position is stable, said PKR secretary-general Rafizi Ramli, days after the pilgrims' fund insisted the payouts were proof of its strong finances. The Pandan MP (pic, right) said based on his analysis, Tabung Haji's reserve levels were expected to remain in the negative for the financial year ending December 2015, for the second year in a row. "Tabung Haji's reserves are projected to drop far lower for the financial year of 2015, possibly reaching a deficit of RM3.195 billion if Tabung Haji loses RM3.144 billion from the fall in the prices of the shares that it holds," Rafizi said in a statement. The former chartered accountant said this meant Tabung Haji would not be able to return depositors' savings should they wish to withdraw their contributions simultaneously. Datuk Seri Jamil Khir Baharom's announcement that Tabung Haji had made a profit of RM3.53 billion was also misleading, said Rafizi, as it did not take into account the losses incurred from its shares and securities. He said Tabung Haji's projected comprehensive income was RM386 million, after calculating the projected loss of RM3.144 billion from the shares it held. "If the losses from the drop in share prices exceed that level, it could completely wipe out the profit announced by Jamil Khir," he added. The PKR vice-president said Tabung Haji was able to get by because new deposits outnumbered withdrawals made each year. "After taking into account several of its high-risk investments and the unfavourable performance of its associate companies, Tabung Haji continues to face financial risk should depositors lose confidence and begin withdrawing their savings en masse." The Malaysian Insider reported on January 26 that Bank Negara Malaysia had warned Tabung Haji's reserves were in the red and that it might not be able to pay dividends to its 8.8 million depositors this year. But Tabung Haji said Bank Negara's calculations had not taken into account all its assets, which they said outweighed its liabilities. It announced the dividends for 2015 on February 4, but this prompted Parti Amanah Negara (Amanah) vice-president Datuk Dr Mujahid Yusof Rawa to ask whether the bonus came from Tabung Haji's reserves or profits. – February 9, 2016.