KUALA LUMPUR: The government is reviewing the sale of assets belonging to TH Plantations Bhd (THP) that was initiated under the previous Pakatan Harapan (PH) administration.
Deputy Minister in the Prime Minister's Department (Religious Affairs) Ahmad Marzuk Shaary said the sale of the assets would not resolve the debt beleaguering the wholly-owned subsidiary of Lembaga Tabung Haji (TH).
"The government is aware of and understands the circumstances (debts) beleaguering THP.
"However, after a survey was conducted, we found that 75 per cent of the debts are from the parent company which is Tabung Haji.
"The sale of assets will not resolve the debt which has become a burden to THP. Instead, there is a need for the restructuring of debts to improve the cashflow of THP," he said.
He was responding to a supplementary question from Datuk Seri Dr Mujahid Yusof Rawa (PH-Parit Buntar) who urged the minister and deputy minister in-charge to be transparent in answering questions on problems enveloping THP.
Mujahid claimed the debts in THP had increased from RM1.24 billion in 2018 to RM1.29 billion.
He also claimed THP assets did not produce any income and resulted in the company's revenue to drop to 24 per cent.
Mujahid also claimed during the Barisan Nasional (BN) administration, THP had aggressively acquired lands from only 50,000ha to 150,000ha between 2012 and 2014.
"And a major portion of the lands remains unplanted, which resulted in THP suffering from debts. I urge the minister to be honest in providing his answers so that this issue will not turn into a political issue," said Mujahid, who was the Minister in the Prime Minister's Department (Religious Affairs) during the PH government.
In response, Ahmad said based on the records which were audited by the Auditor-General Department, THP made a revenue of about RM127 million in 2016 and RM60.9 million the following year.
During the transition of power after the 14th general election, Ahmad said THP suffered losses of RM678 million and RM245 million in 2018 and last year respectively.
"On the issue involving unplanted lands that would be sold to Tamaco (Plantations Sdn Bhd) (under the previous PH administration), the value is RM4,500 per ha. This is way too cheap.
"The important question is why the rush to sell (the lands) to this company (Tomaco) since the recovery of commodity prices is the main instrument of THP," said Ahmad.