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The government has failed to meet its first repayment deadline to Tabung Haji, rolling RM11.5 billion of a RM12.5 billion debt into a new sukuk maturing in 2036, even as Parliament convenes today (11 August) to debate a Royal Commission of Inquiry (RCI) report on the fund’s management.
Sukuk UJSB Series 1 matured on 29 May, according to former economy minister Datuk Seri Rafizi Ramli, who laid out the numbers in a Facebook statement last night.
Of the RM12.5 billion owed, just RM965 million has been paid in the form of property.
This includes land at the Tun Razak Exchange, and plantation land in Sarawak.
“Properly, the government should settle its commitment to fully redeem the RM12.5 billion owed to Tabung Haji, either in cash or equivalent assets,” Rafizi said.
Where Did The Debt Come From?
The debt traces back to 2018, when the government used a wholly owned vehicle, Urusan Jamaah Sdn Bhd (UJSB), to take over Tabung Haji’s loss-making assets – at values higher than what they were actually worth.
In exchange, UJSB issued two series of sukuk to Tabung Haji, to be redeemed in cash or recovered-value assets by 2026 and 2029.
It was meant to be temporary, restoring Tabung Haji’s reserves so it could keep paying depositor returns.
Rafizi says the RCI report, on pages 107 to 137, already flagged this risk, warning the government needed annual budget allocations ready for when the sukuk matured.
Issue Lasting Across Administrations
According to Rafizi, three administrations approved funding to cover the sukuk redemption since 2019.
Under then prime minister Tun Dr Mahathir Mohamad, the government approved at least RM17.8 billion on 5 April 2019, later carried into the 12th Malaysia Plan under Datuk Seri Ismail Sabri Yaakob.
But citing the RCI’s findings, Rafizi says only RM500 million of that has actually reached Tabung Haji.
A further RM1.5 billion approved under Budget 2021 was never paid out at all.
This was, says Rafizi, because the Perikatan Nasional government of the time prioritized Covid-19 recovery instead.
Rafizi Wants Answers
Rafizi says that the parliamentary debate today should get clarification from the government on where the billions allocated over the years to restore Tabung Haji have gone.
He warns that replacing one debt instrument with another, again and again, could leave Tabung Haji exposed to liquidity and cash-flow risks down the line.
Nearly a decade after the bailout began, the government still hasn’t finished paying for it.
READ MORE: Tabung Haji Drops Midnight Explanation, Defends 2018 Bailout
READ MORE: Tabung Haji Is Making Money Again, The Most It Has In Eight Years
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