Urusharta Jamaah recorded RM9.9b loss in 2019

pic by BERNAMA

URUSHARTA Jamaah Sdn Bhd posted a net loss of RM9.95 billion for its financial period between Dec 14, 2018, and Dec 31, 2019, as a result of the transfer of Lembaga Tabung Haji’s (TH) non-performing assets in 2018.

Deputy Finance Minister II Mohd Shahar Abdullah (picture) told the Dewan Rakyat yesterday that the wholly owned unit of the Finance Ministry earned RM234 million during the period generated through dividend revenue and earnings from rentals of assets owned by the company.

“The small revenue earned could not cover the operating losses contributed by the fair value loss on equity instruments of RM7.57 billion and impairment loss of RM1.77 billion, which resulted in a total loss of RM9.95 billion.

“However, the situation was expected as the assets transferred from TH to Urusharta Jamaah were not made at a fair value of RM9.7 billion, but instead at a book value with a premium of RM19.9 billion,” he said.

Mohd Shahar added that the difference resulted in Urusharta Jamaah bearing an excess gap of liability against its assets of RM10.2 billion.

Urusharta Jamaah’s fair value assets stood at RM10.3 billion, while its liability stood at RM20.29 billion, Mohd Shahar said.

He was responding to a query by Datuk Seri Abdul Azeez Abdul Rahim (Barisan Nasional-Baling) on Urusharta Jamaah’s current financial state after it took over TH’s assets.

Mohd Shahar said, this year, Urusharta Jamaah will pay RM500 million to TH, of which RM300 million will be part of the cash settlement and RM200 million for initial redemption of sukuk.

Urusharta Jamaah’s financial statements were prepared based on a going concern basis as the company received a letter of financial support from the Minister of Finance Inc dated May 27, 2019, Mohd Shahar said.

He added that the government is committed to instilling investors’ confidence through the injection of RM17.8 billion fund to TH, which will be done on a regular basis from 2020 until 2030.

The special-purpose vehicle unit took over TH’s non-performing assets valued close to RM9.63 billion in 2018.

The company took over TH’s stakes in 106 listed companies, an unlisted plantation counter and 29 properties, including four hotels and a plot of land at Tun Razak Exchange, Kuala Lumpur.

It paid RM19.9 billion for the pilgrim fund’s assets, which had a value close to RM10 billion, and issued a RM19.6 billion sukuk to facilitate the acquisition.