00:00The Royal Commission of Inquiry into Tabung Haji has found that the Pilgrim's Fund concealed the true state of its
00:07finances for several years.
00:09The RCI said Tabung Haji reported a RM3.4 billion profit in 2017 when it should have recorded a RM1
00:18.4 billion net loss under proper accounting standards.
00:22The Six-Member Commission, chaired by former Chief Justice Raus Sharif, attributed the discrepancy to changes in impairment policies, unrecorded
00:33investment losses and creative accounting.
00:36Its 252-page report, submitted to the Yang Di-Pertuan Agong in August 2022, was declassified yesterday.
00:44The RCI said several Tabung Haji chairman and board members appointed between 2014 and 2018 were active politicians.
00:54It said political interference in board appointments, Hiba payments, haj fees and financial aid had contributed to Tabung Haji's financial
01:03problems.
01:04The Commission found that high Hiba payouts from 2014 to 2017 exceeded the institution's financial capacity, depleted its reserves and
01:14pushed it towards riskier investments.
01:17It also criticised the National Audit Department for issuing a clean audit opinion in 2017, saying concerns over depositor confidence
01:27had compromised its independence.
01:29The RCI found that Tabung Haji suffered losses after expending into property, plantations and other investments despite lacking sufficient expertise.
01:40Among its recommendations were barring active politicians from the board, separating religious and financial oversight, appointing private auditors, basing Hiba
01:51payments only on audited accounts and conducting forensic audits into 14 troubled investments.
01:57From Manda Wigapari, FMT.
