PETALING JAYA, Feb 25 — Lembaga Tabung Haji risks losing at least RM1.4 billion if it continues its commitment to invest in troubled oil-and-gas company TH Heavy Engineering Berhad (THHE), PKR's Rafizi Ramli claimed today.

Rafizi said that THHE, which was formerly known as Ramunia Holdings Bhd was already facing heavy financial losses and was suspended from Bursa Malaysia back in 2010 when it slipped into Practice Note 17 (PN17) status.

"Tabung Haji then increased its investments in Ramunia Holdings Berhad which was rebranded as TH Heavy Engineering Berhad (THHE), and appointed a representative as CEO and remains as the biggest shareholder," Rafizi told a news conference here.

Based on THHE's latest risk assessment report, he said that LTH's management had given the company a corporate guarantee late last year despite its financial troubles.

"The investment risks in Tabung Haji is now at least RM1.4 billion (total share losses amounting to RM100 million, injecting RM275 million via a Islamic irredeemable convertible preference (ICPS-I) exercise, RM50 million sukuk and corporate guarantee of RM981 million," Rafizi said, citing figures obtained from the risks assessment report.

"My main question is how much more will Tabung Haji inject in THHE to last for another five to eight years when the price of crude oil has dropped, when it failed to revive THHE in previous years when the price of crude oil was at its peak?" the Pandan MP asked.

THHE has been bleeding for the past five consecutive quarters. The company has been posting losses since the second quarter ended June 30 in 2014.

According to previous news reports, THHE was in the process of turning around in mid-2014, but those plans were derailed due to lack of jobs coupled with the slump in crude oil price.

According to its official website, THHE's core business is in the fabrication of offshore oil and gas facilities.