The Malaysian Insight

THE government should set up a royal commission of inquiry to investigate why pilgrims fund Tabung Haji (TH) distributed income to its depositors despite bearing liabilities significantly higher than its assets, Umno deputy president Mohamad Hasan said.

He said this after independent audit firm PriceWaterhouseCoopers’ (PwC) review on Tabung Haji’s financial position was tabled in Parliament yesterday.

The PwC report also stated that TH structured two deals to give the impression that the dividends were from profits but they came from depositors’ savings.

Mohamad said the PwC report on TH’s financial position and practices raised many serious concerns and they must be taken seriously by all parties. 

“I am sure Malays and Muslims want the truth and justice to be served on those responsible. An in-depth and thorough investigation must be done immediately,” he wrote on Facebook last night.

Mohamad said the matter was not just about income distribution being done not according to procedure but also a corporate administration and management crisis.

“TH is owned by Malays and Muslims. They and the general public have the right to know the actual situation in this important institution. The truth will can only be revealed from a transparent, impartial and thorough probe.”

He said Umno was serious in preserving the integrity of a Malay and Muslim institution, and efforts to strengthen TH, tackle leakages, breach of trust and mismanagement must be supported by all parties.

“The best way to protect the interests of Malays and Islam is by making sure our institutions are well managed. We cannot let TH depreciate in value or importance, or be abused by anyone.

“TH also has a good reputation within and outside Malaysia. Its mandate, functions and aspirations are noble and critical to Muslims. Its integrity must be defended at all cost.

“Therefore, I propose a RCI to be set up to uncover the truth. It will allow us to know the issue clearly and in detail…I hope the government will consider this,” he said.

It was reported that Tabung Haji declared dividends of 4.5% and a bonus of 1.75% last year.

The last TH board chairman was Umno supreme council member Azeez Abdul Rahim, who is also Baling MP. He was chairman from July 1, 2013 until his resignation on May 14 this year, following Barisan Nasional’s defeat in the 14th general election.

Azeez was investigated by the Malaysian Anti-Corruption Agency, which raided three properties linked to him in May after the elections. He was also arrested in late September along with one of his brothers.

Late last month, the TH board lodged police reports against him, two of former CEOs and other senior management staff.

One report was over a Yayasan Tabung Haji programme in 2017, where more than RM22 million had been used for “activities with political inclinations”.

The other was over “misrepresentations and withholding of material information” regarding Tabung Haji’s sale in 2012 of its 95% stake in PT TH Indo Plantations, held by its two subsidiaries.

The two reports lodged at the Commercial Crime Investigation Department were the first following internal investigations into past transactions under the funds’ new management, which took over in July. – December 11, 2018.