Did Tabung Haji unlawfully pay dividends while in deficit?

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Tabung Haji Allegedly Paid Dividends Illegally While In Deficit

Minister in the Prime Minister’s Department Datuk Seri Mujahid Yusof Rawa stated that Lembaga Tabung Haji (LTH) has been paying out dividends illegally since 2014 due to being in deficit. This assertion is based on an audit of LTH's 2017 accounts by PricewaterhouseCoopers, which revealed assets of RM70.3 billion against liabilities of RM74.4 billion, indicating a deficit of RM4.1 billion.
Audit Revealed Financial Deficit

An audit conducted by PricewaterhouseCoopers on Lembaga Tabung Haji's 2017 accounts identified a significant financial shortfall. The audit found that the fund's assets amounted to RM70.3 billion, while its liabilities reached RM74.4 billion. This resulted in a reported deficit of RM4.1 billion for that year.
Legal Prohibition on Dividend Payouts

The Tabung Haji Act 1995 explicitly prohibits the payment of dividends, known as hibah in Islamic finance, under specific financial conditions. These conditions include situations where the fund is operating at a deficit or does not possess distributable profits. The alleged practice of paying dividends while in deficit contravenes these legal stipulations.
Call for Royal Commission of Inquiry

In response to these allegations, PAS president Datuk Seri Abdul Hadi Awang has called for the establishment of a royal commission of inquiry. He believes this venue is necessary to thoroughly investigate the claims and lend credibility to the allegations, which he has described as unsubstantiated. Hadi suggested that the Conference of Malay Rulers should oversee this process, either through Parliament or a dedicated commission, to evaluate the findings of independent auditors before government decisions are made.

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Did Tabung Haji unlawfully pay dividends while in deficit?

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