Speaking at a press conference today, Rafizi said THHE ran into financial trouble even when oil prices were above US$100 a barrel and he predicted that it would be further distressed in the next five to eight years.

He said TH started aggressively buying shares in the company in July 2008. The company was then known as Ramunia Holdings. By February 2009, TH had become the majority shareholder, owning 29.68% of the company.

“The whole exercise cost TH about RM250 million,” he said.

Even though speculation that Ramunia would be bought by a Petronas subsidiary raised the share price from RM1.50 to RM1.95, he said, the company lost RM21 million in 2008 and RM383 million in 2009. At the end of the 2009 financial year, auditors expressed concern that Ramunia was risking bankruptcy.

Ramunia’s share price dropped to RM0.205 on March 2, 2010, and it was suspended from Bursa Malaysia.

TH then took over Ramunia and renamed it THHE. But it failed to turn the company around, Rafizi said.

“The CEO appointed by TH resigned in 2014 as he failed to improve the company’s financial standing. The share price of THHE now stands at RM0.145 per share, making the losses on paper, by my calculations, standing at RM202 million.”

Citing a risk analysis report, Rafizi said TH risked losing RM1.4 billion if THHE failed to meet its obligations. He said the report was leaked last month.

Of the RM1.4 billion, RM981 million was in the form of a corporate guarantee from TH to THHE, he said.

“How can Tabung Haji assure its depositors that this was a worthwhile investment and that THHE can get back on its feet in the next five to eight years at a time when the oil and gas industry has been badly hit?” he asked.

He said TH CEO Ismee Ismail and Chairman Abdul Azeez Rahim would have trouble convincing the fund’s contributors that their money would not be used to cover the losses.

“By now TH, Tan Sri Ismee and Azeez should know I wouldn’t have gone this far and this persistently if I have not done my homework,” he added.