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RCI report highlights governance lapses, political influence in Tabung Haji management

Inquiry into pilgrim fund’s 2014-2020 operations identifies weaknesses in oversight, decision-making and legal framework

10:35 PM MYT

 

KUALA LUMPUR – Weak governance, including alleged political influence over the management of Tabung Haji (TH) and decisions involving profit distribution, was among the key findings of the Royal Commission of Inquiry (RCI) into the pilgrim fund’s operations between 2014 and 2020.

The RCI report, released on Wednesday night, found that political involvement in TH’s administration from 2014 to 2018 contributed to public concerns, particularly amid heightened political competition during the period, Bernama reported.

The commission said such circumstances enabled certain parties to use TH’s decisions as political ammunition, affecting public confidence and the institution’s reputation.

“There were several TH decisions, such as the payment of profit distribution (hibah), the determination of haj charges, and Hajj Financial Support (HAFIS), that were driven by political elements,” the report said.

The report also identified shortcomings in the Tabung Haji Act 1995 (Act 535), stating that the legislation was no longer aligned with current requirements as it granted extensive powers to the minister overseeing haj affairs, funds and investments.

The Department of Islamic Development Malaysia (JAKIM) released the 211-page RCI report on TH’s management and operations tonight through its official website.

The report, published in PDF format, consists of an executive summary, four main chapters and a list of exhibits related to the inquiry. It also includes the commission’s findings and recommendations aimed at strengthening TH’s governance and operations, which were submitted to the then 16th Yang di-Pertuan Agong, Al-Sultan Abdullah Ri’ayatuddin Al-Mustafa Billah Shah.

The six-member RCI was chaired by former Chief Justice Tun Md Raus Sharif. Its members included former Chief Secretary to the Government Tan Sri Samsudin Osman and RHB Group founder Tan Sri Abdul Rashid Hussain.

The other commissioners were former Bank Muamalat Malaysia Berhad chairman Tan Sri Dr Mohd Munir Abdul Majid, Sultan Abdul Halim Mu’adzam Shah International Islamic University (UniSHAMS) Vice-Chancellor Prof Dr Asmadi Mohamed Naim, and chartered accountant Norsyahrin Hamidon.

Datuk Hakimah Mohd Yusoff, who was then JAKIM’s Deputy Director-General (Policy), served as secretary to the RCI.

The commissioners were appointed by the 16th Yang di-Pertuan Agong on Jan 20, 2022, with a six-month mandate that ended on July 19 of the same year.

According to the report, the inquiry employed four methods: reviewing records and documents, receiving briefings from agencies, obtaining statutory declarations from witnesses, and conducting commission proceedings.

“The Commission identified 45 witnesses who could assist the inquiry and recorded their evidence through Statutory Declarations, while 16 of them were called to testify during closed proceedings at the Putrajaya Islamic Complex,” the report said.

Among those who provided evidence were former Ministers in the Prime Minister’s Department Datuk Seri Jamil Khir Baharom and Datuk Seri Dr Mujahid Yusof Rawa, former TH chairmen Datuk Seri Abdul Azeez Abdul Rahim and Tan Sri Md Nor Md Yusof, as well as former TH chief executive officers Tan Sri Ismee Ismail and Datuk Seri Johan Abdullah.

The RCI’s terms of reference covered matters relating to TH between 2014 and 2020, based on findings from PricewaterhouseCoopers (PwC), Ernst & Young (EY) and Roland Berger, while excluding the restructuring and recovery plan that was already in progress.

The commission was also tasked with examining documents and evidence to determine whether information had been withheld or misleading statements made, as well as recommending action against any parties found to have violated the law.

The report is divided into four chapters covering the inquiry’s introduction, TH’s management and operational background, the commission’s findings and recommendations, and a conclusion outlining 25 proposed improvements.

The Cabinet approved the establishment of the RCI on July 14, 2021, under the Commissions of Enquiry Act 1950, with its objectives and terms of reference finalised on Oct 8 that year. – July 29, 2026

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