REVEALED: TABUNG HAJI BALANCE SHEET AT 31ST DECEMBER 2014 AUDITED BY THE AUDITOR-GENERAL'S DEPARTMENT!

by university of preston, Donplaypuks® intrepid correspondent for pilgrimage fund affairs

(Click on pic for enlarged view.)

Here is the relevant balance sheet re-hashed from the financial information published at Tabung Haji Group's  (THG) website. CLICK HERE.

Column1	Column2	Column3	Column5	Column6	Column7	Column8
TABUNG HAJI
BALANCE SHEET
AT 31 DECEMBER
			TH Group	TH Group	TH	TH
			2014	2013	2014	2013
			RM billion	RM billion	RM billion	RM billion
CURRENT ASSETS
Cash & Bank			9.53	8.68	6.98	8.56
FD			0.72	0.70	-	-
Loans given out			29.52	23.74	1.45	2.19
Trade Debtors			2.43	1.11	0.52	0.70
Inventory			0.61	0.59	-	-
Trading securities			1.17	1.41	-	-
Sale assets			1.80	3.50	2.44	2.95
Tax Recoverable			0.13	0.91	0.06	0.06
Miscellaneous			0.66	-	0.22	-
			46.57	40.64	11.67	14.46
CURRENT LIABILITIES
FD			0.30	1.53
Banking Customer's Deposits			38.36	32.41	-	-
Trade Creditors			2.33	1.74	0.27	0.15
Takaful Liabilities			6.33	6.08	-	-
Financing			0.08	0.03	-	-
Deferred Tax			0.15	0.14	-	-
Retirement Benefit			0.40	0.39	-	-
Other			0.20	0.30	0.47	0.46
			48.15	42.62	0.74	0.61
NET CURRENT ASSETS/(LIABILITIES)			(1.58)	(1.98)	10.93	13.85
LONG-TERM INVESTMENTS & ASSETS
Quoted Shares			13.21	10.02	12.77	9.09
Government Securities			12.84	13.79	1.38	0.91
Unit Trust			1.05	0.98	0.61	0.46
Islamic Debt Certificate			5.56	4.97	4.33	2.86
Fund Managers			1.18	1.24	1.18	1.24
Unquoted Shares			0.67	0.47	0.63	0.44
Corporate Debt Securities			6.49	5.66	6.49	5.66
Mainly Unquoted Debt Securities			4.01	2.97	5.60	4.50
Investment Property			8.29	6.33	5.20	3.92
Investment in subsidiaries			-	-	3.75	3.41
Investment in associates			-	-	0.57	0.76
Investments - other			-	-	0.15	0.38
sub-total			53.30	46.43	42.66	33.63
Property, Plantation, Plant & Eq etc.			4.68	4.04	0.40	0.64
Takaful Assets			0.81	0.75	-	-
Statutory BNM Deposit			1.34	1.30	-	-
Intangibles			0.34	0.40	0.02	0.05
			60.47	52.92	43.08	34.32
LESS:LONG TERM LIABILITIES
Financing - non-current liabilities			(1.85)	(1.39)	-	-
NET ASSETS			57.04	49.55	54.01	48.17
CAPITAL
Depositors' Savings Fund			54.36	45.72	54.36	45.72
Reserves			1.15	2.27	(0.35)	2.45
sub-total			55.51	47.99	54.01	48.17
Minority Interest			1.53	1.56	-	-
			57.04	49.55	54.01	48.17

It is important to note the following:

1. The statement by some THG top officers that Bank Negara Malaysia (BNM) had NOT taken into consideration the market value of THG's investments is absolute nonsense. A simple reading of the notes to the accounts reveal that all shares and properties are stated at market value and provisions made for loss in value of investments and assets. In any event, many of these are long-term investments and assets which cannot be liquidated quickly enough, some for statutory reasons, to pay dividends.

2. The presentation of the balance sheet at the website is not satisfactory as all assets are grouped on the left and liabilities and capital on the right, without separating out long-term portions of loans and deposits.

This makes it difficult to appreciate the true liquidity position of THG and its ability to pay dividends.

3. The presentation above shows that the Group's liquidity or working capital situation - defined as current assets minus current liabilities - was negative in 2013 AND 2014. The acid test statistic - i.e. after deducting inventories - is marginally worse.

4. We must also appreciate that many of THG's assets such as investment in subsidiaries, associate companies and joint-ventures are long-term assets that cannot be easily liquidated should THG be short of cash or there is a run on its deposits.

5. In 2014, THG declared some RM3.2 billion in dividends which was in excess of its reserves of RM1.15 billion. However, THG's Constitution only requires that its liabilities NOT exceed its assets in determining whether it can legally pay dividends. So, while THG was in compliance with its Constitution, it is not the most prudent of accounting policies by international standards, given that many of the investments and assets are locked in.

6. It is likely that for the year ended 31st December 2015, THG would like to maintain its dividend of about RM3 billion a year - 6% on deposits + 2% bonus.

7. This is where BNM came in. In 2015, THG's share portfolio must have declined. On its holdings of FGV shares alone, THG had lost close to RM850 million on paper by August 2015. CLICK HERE. What about its loans to 1MDB and other corporations and individuals, and investments in other shares?

8. So, BNM's recent warning to THG and statement that THG's liabilities were only backed by 98 cents to the ringgit, is a shocker. Since THG's 2015 financial statements have yet to be audited and published, we remain in the dark as to THG's current financial position. One doubts if BNM would issue such an alert letter to THG without substance.

Moreover, there is public disquiet that THG has a controversial Chairman, Abdul Azeeze Abdul Rahim, an UMNO MP who was hand-picked by PM Najib. Azeeze was involved in the public furore over THB's land acquisition from 1MDB and its subscription to 1MDB's borrowings. CLICK HERE. Many were not amused that the Muslims' pilgrimage funds had been invested in RM42 billion indebted 1MDB!!

Questions were also raised both in Parliament and elsewhere about Azeeze's university degree. CLICK HERE AND HERE.

In the light of the global plunge in oil prices and economic decline locally, PM Najib's performance concerning GLCs (particularly 1MDB) and his habit of packing their top posts with his hand-picked candidates, it is not unreasonable for THG depositors to be concerned about the current financials of THG. More so with BNM's warning letters to THG leaked online. 

CLICK HERE for BNM's warning about THG's negative reserves!

CLICK HERE for book losses of nearly RM8 billion registered by many GLCs - up to August 2015 - from their investment in Felda Global Venture shares which were listed primarily by Najib's urging and efforts!!


Donplaypuks® with cash flow and assets and liabilities, O' Chairman of THG!