Najib Warns Bank Run Can Further Destabilise Tabung Haji

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Najib Abdul Razak has warned that the Pakatan Harapan government's "surprise" revelation on Lembaga Tabung Haji's alleged cooking of the books to hide billions in deficit could result in mass withdrawal of deposits, thus de-stabilising the fund
The former premier said this following the revelation by Minister in the Prime Minister's Department Mujahid Yusof Rawa's yesterday that the pilgrimage fund had contravened the law when it chose to pay out dividends (hibah) despite a deficit of RM4.1 billion in terms of assets as of 2017.  revelationNajib said that as a result, the media had been "playing up the issue" this morning, with some highlighting the fact that 30 percent of its shares investments in listed companies experienced a more than 50 percent fall in fair value, reportedly at the end of October
"At a time when Tabung Haji investment value has fallen, as a result of Bursa Malaysia's continuous drop after foreign investors have unceasingly withdrawn their funds after GE14, (damage to the) confidence in Tabung Haji need not be added to due to the surprise by the Pakatan Harapan government
"This step has eroded the depositors' trusts towards Tabung Haji to the point there is a possibility of a bank run or mass withdrawals of deposits
"If this happens, Tabung Haji's funds and cash flow will continue to deplete to the point Tabung Haji's stability is affected," he said in Facebook today
Deeming added thus, the move by the Harapan regime to politicise the pilgrimage fund was "not a wise step"
"If the past management of Tabung Haji and its auditors are truly in the wrong, investigate and take action, but don't politicise it
"[...] Tabung Haji is not Tabung Harapan for you to politicise," he said
He called on the government to cease issuing negative statements on the fund, and instead work to reassuring its depositors
 In a press conference in Dewan Rakyat yesterday, Mujahid, who oversees Islamic and religious affairs, stated that the pilgrimage fund had been declaring hibah since 2014, even though its assets were less than its liabilities
He said a comprehensive turnaround plan is needed to restore its balance sheet, and that Tabung Haji's deposit-taking activities will now be placed under Bank Negara Malaysia's oversight.This came after a review by audit firm PriceWaterhouseCoopers (PwC), tabled in Parliament, which claimed Tabung Haji paid dividends using depositors’ savings
It also stated that the company structured several deals to give the impression the dividends were actually coming from profits instead. - Mkini

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