Zulkifli: Five Bank Negara warnings over Tabung Haji's finances went unheeded

KUALA LUMPUR: The federal government has yet to fully settle a RM12.5 billion obligation to Tabung Haji after the maturity of Urusan Jamaah Sdn Bhd's Series 1 sukuk on May 29, asserts opposition lawmaker Rafizi Ramli. He maintains that the government should have paid the entirety of the sum in cash or through assets of equal value. Rafizi contends that only RM965 million has been settled through property, while the remainder of RM11.5 billion has been replaced with new sukuk due for repayment in 10 years.

During his time as economy minister, Rafizi recalled that the government consistently allocated more than RM1 billion annually to settle the Urusan Jamaah sukuk upon maturity on May 29, 2026. Consequently, today's parliamentary debate should prompt the government to offer a transparent explanation regarding the fate of the billions of ringgit earmarked over the years for Tabung Haji's rehabilitation.

Rafizi further elaborates that the financial restructuring of Tabung Haji, approved by the government in late 2018, relied on the government's capacity and adherence to settling the financial commitment when the sukuk matured. Under this plan, he explains, the government, via Urusan Jamaah, assumed Tabung Haji's loss-making assets at a price exceeding their actual worth, issuing two series of sukuk to the fund.

He adds that upon the sukuk's maturation in 2026 and 2029, the government was obligated to repay Tabung Haji in cash or by restoring assets to substitute the sukuk.

Rafizi highlights that this issue was a primary focus in the Royal Commission of Inquiry (RCI) report on Tabung Haji, specifically concerning the government's obligation to allocate annual budgets to ensure the commitments could be settled. He also asserts that only RM500 million has been paid to Tabung Haji to redeem the Urusan Jamaah sukuk, according to the RCI's conclusions.

In 2021, under the Perikatan Nasional administration, the RM1.5 billion allocation approved in the 2021 Budget remained unpaid to Tabung Haji due to the funds being allocated for economic recovery post-Covid-19 pandemic.

All three governments since 2019 have approved allocations to settle the sukuk. Under the Pakatan Harapan administration led by Tun Dr Mahathir Mohamad, an allocation of at least RM17.8 billion was approved on April 5, 2019, to address the shortfall in redeeming the Urusan Jamaah sukuk. Rafizi maintains that this commitment was continued under the 12th Malaysia Plan during Ismail Sabri Yaakob's tenure and is also encompassed in the 13th Malaysia Plan under Prime Minister Anwar Ibrahim's administration.

He contends that by avoiding the full settlement of this commitment, the current and future governments risk exposing Tabung Haji to ongoing risks related to asset liquidity and cash flow. If the present and future administrations persist in deferring the settlement of the Urusan Jamaah sukuk (by replacing one debt instrument with another), Rafizi warns that Tabung Haji will continue to confront risks to its asset liquidity and cash flow.