What was the actual financial situation of TH in 2017, contrary to its reported profit?

Question

Accepted Answer

Tabung Haji Faced Significant Undisclosed Deficit in 2017

Contrary to its reported profit of RM3.4 billion in 2017, Lembaga Tabung Haji (TH) should have registered a net loss of RM1.4 billion if Malaysian Financial Reporting Standards (MFRS) had been fully implemented. This discrepancy highlights a critical financial state, with a deficit gap between assets and liabilities that had been present since 2014, as detailed in the Royal Commission of Inquiry (RCI) report.
Undisclosed Net Loss in 2017

The RCI report's findings reveal a substantial divergence between TH's reported financial performance and its actual position in 2017. Had the institution adhered strictly to MFRS, the RM3.4 billion reported profit would have been a net loss of RM1.4 billion. This suggests that accounting practices employed at the time obscured the true financial health of the organisation.
Persistent Deficit Gap Since 2014

The financial difficulties at TH were not isolated to 2017. The RCI report indicated that the organisation's financial position was at a critical juncture, characterised by a deficit gap between its assets and liabilities. This shortfall had been a persistent issue, existing since 2014, underscoring a prolonged period of financial strain.
Contributing Factors to Financial Crisis

The RCI report identified several key factors that exacerbated TH's financial crisis. These included governance weaknesses such as political interference in management decisions and the distribution of profits without adequately accounting for the impact of depreciation and the decline in the fair value of investments. These practices, along with issues like high grant payments and creative accounting, contributed to the institution's precarious financial standing.

Reading history

Hide →

This history is cleared when the page is closed.

What was the actual financial situation of TH in 2017, contrary to its reported profit?

Loading

Was this article helpful?

Helpful

Not helpful

Report an issue

2

0

0

Share with friends