Kuala lumpur: The government's commitment to enhancing the financial and regulatory framework of Lembaga Tabung Haji (TH) was a focal point at a special Dewan Rakyat session, as officials underscored measures to prevent a recurrence of past financial issues.
According to BERNAMA News Agency, the government is set to amend the Tabung Haji Act 1955 in alignment with recommendations from the Royal Commission of Inquiry (RCI). The session, which extended over 10 hours, highlighted the establishment of a task force led by TH chairman Tan Sri Abdul Rashid Hussain. The task force, inclusive of Bank Negara Governor Datuk Seri Abdul Rasheed Ghaffour and Securities Commission (SC) chairman Datuk Mohammad Faiz Azmi, will scrutinize the RCI's conclusions and recommendations.
Minister in the Prime Minister's Department (Religious Affairs) Dr. Zulkifli Hasan emphasized that the task force has proposed that TH's fund and investment management be overseen by the SC, while the haj pilgrimage management will fall under the purview of the Minister in the Prime Minister's Department, ensuring TH's continued existence as a single entity.
During the session, Zulkifli detailed TH's precarious financial state, revealing losses nearing RM13 billion and potential government liabilities of about RM74.5 billion in 2018, had panic withdrawals occurred. Finance Minister II Datuk Seri Amir Hamzah Azizan further elaborated on the extent of losses in seven out of 14 troubled investments, including the controversial link to 1Malaysia Development Bhd (1MDB) through Putrajaya Perdana Bhd.
Amir Hamzah assured transparency and accountability, stressing that the MADANI Government would conduct thorough investigations into the financial mismanagement without bias or favoritism. Amendments to Act 535 are expected to legally bar active politicians from TH's board, with investments regulated by the SC and profit distributions based on verified accounts, ensuring decisions align with the interests of the ummah.
The session also saw contributions from 39 Members of Parliament, including a proposal from Aminolhuda Hassan (PH-Sri Gading) advocating for a single regulatory body for large non-bank financial institutions (NBFIs) to ensure cohesive oversight. Bentong MP Young Syefura Othman (PH) urged the government to diversify TH's income sources, reducing dependence on UJSB sukuk, which comprises a significant portion of its annual income, as noted in the RCI Report.
The 211-page RCI report, released on July 29, identified operational weaknesses in TH between 2014 and 2020 and proposed 25 improvements, 75 percent of which have been executed by TH as of July 30. Following the RCI's establishment in 2021 and subsequent presentation to the Yang di-Pertuan Agong on August 30, 2022, these measures are part of a broader government strategy to fortify TH's financial stability and governance.