Kuala lumpur: The Dewan Rakyat today called for amendments to the Tabung Haji Act 1995 (Act 535) to be expedited to facilitate implementation of the Royal Commission of Inquiry (RCI) recommendations, particularly to strengthen TH governance, limit the Minister's powers and prevent political influence and appointments.
According to BERNAMA News Agency, the majority of government and opposition MPs who took part in the debate on the RCI report on TH said the amendments were important to address weaknesses in governance, strengthen the independence of the Board of Directors in decision-making and ensure TH management appointments were based on merit and professionalism.
Datuk Shahelmey Yahya (BN-Putatan) proposed that the Minister's power to issue general directions to TH under Section 10 of Act 535 be abolished to enable the institution to operate more independently, foster corporate ethics in its management and ensure decisions were made based on the institution's interests and performance. He highlighted that the concentration of powers outlined under Section 10 contributed to episodes of failure that affected TH's performance and financial position, stressing that political influence in decision-making hinders institutional excellence.
Shahelmey emphasized that appointments to the TH Board of Directors should be based on merit to ensure the credibility and professionalism of its chairman and members are not overshadowed by executive influence. In agreement, Tan Sri Muhyiddin Yassin (PN-Pagoh) urged the government to firmly and continuously implement all RCI recommendations, including improving the legal framework under Act 535 and strengthening monitoring by Bank Negara Malaysia or the relevant regulatory body.
Muhyiddin also proposed establishing an independent, integrity-driven investment committee and restructuring TH's investment portfolio to ensure investments comply with Syariah principles. Syed Saddiq Syed Abdul Rahman (MUDA-Muar) echoed the call for amendments to institutionalize a TH leadership appointment process free from political appointments, advocating for transparent, merit-based appointments.
Mohamad Shafizan Kepli (Batang Lupar-GPS) stressed the need to amend Act 535 to strengthen appointment criteria, limit the involvement of active politicians, and reduce conflicts of interest on the board and in its subsidiaries to safeguard depositors' interests. He warned against allowing TH, as an Islamic financial institution, to be crippled by weak financial governance, which could adversely affect ordinary people saving for the haj.
The urgency of amending the Act and addressing political appointments to TH was echoed by several other MPs, including Datuk Azman Nasrudin (PN-Padang Serai), Young Syefura Othman (PH-Bentong), Datuk Seri Hasni Mohammad (BN-Simpang Renggam), and Datuk Mohd Suhaimi Abdullah (PN-Langkawi).
The special Dewan Rakyat sitting was convened following the government's decision to make the RCI report on TH public on July 29, allowing MPs to examine and debate its findings and recommendations. The report revealed various weaknesses in TH's management and operations between 2014 and 2020, and made 25 recommendations for improvement, 75 per cent of which had been implemented by TH as of July 30.