Tabung Haji defends 2018 restructuring, says RM10b asset sale prevented insolvency
Lembaga Tabung Haji has defended its 2018 financial restructuring, asserting that the sale of RM10 billion in assets was essential to prevent insolvency. The fund claims the move was necessary to protect depositors and maintain profit distributions following criticism from a Royal Commission of Inquiry.
Why it matters
The defense highlights the challenges of managing large-scale national pilgrimage funds and the importance of financial transparency in government-linked institutions.
KUALA LUMPUR, July 31 — Lembaga Tabung Haji (TH) today defended its 2018 restructuring exercise, saying the sale of nearly RM10 billion worth of assets was necessary to prevent insolvency and protect depositors following the release of the Royal Commission of Inquiry (RCI) report into the pilgrimage fund.
In a statement posted late last night on Facebook, TH said it undertook the restructuring after facing what it described as a widening financial deficit that required urgent government intervention to ensure the fund remained solvent and could continue declaring profit distributions under the Tabung Haji Act.
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