Summary
- RCI identifies governance and financial weaknesses at Tabung Haji.
- Political influence affected key decisions between 2014 and 2020.
- Report recommends governance reforms and forensic audits.
- Tabung Haji should remain a national institution with stronger oversight.
PUTRAJAYA, July 29 — The Royal Commission of Inquiry (RCI) has concluded that Lembaga Tabung Haji (TH) suffered from serious governance failures.
Weak financial controls and political influence between 2014 and 2020, leading to a severe financial crisis by 2017. The Commission found that excessive ministerial powers,
Weak governance structures and the appointment of active politicians to the board contributed to poor oversight of investments, dividend (hibah) payments and hajj-related policies.
It also concluded that TH’s financial position was weaker than reported, with accounting practices and delayed impairment recognition overstating profits.
While supporting unsustainable dividend distributions. Among its recommendations, the RCI proposed amending the Tabung Haji Act 1995, prohibiting active politicians from serving on the board.
Strengthening professional appointments, conducting forensic audits into selected investments and ensuring future dividends are declared only based on audited financial statements.
Despite its findings, the Commission recommended retaining Tabung Haji as Malaysia’s national hajj savings institution, provided comprehensive governance reform.
Are implemented to restore public confidence and ensure long-term financial sustainability.
