Former Economy Minister Datuk Seri Rafizi Ramli has welcomed the release of the Royal Commission of Inquiry (RCI) report on Lembaga Tabung Haji, saying it validates concerns he first raised a decade ago over the pilgrimage fund’s financial position and governance.
Rafizi said the report had brought renewed public attention to issues affecting Tabung Haji since 2014 and vindicated his earlier disclosures regarding the fund’s negative reserves and financial management.
The former PKR member said he was the first politician to publicly reveal that Tabung Haji’s reserves had turned negative, beginning with the 2015 financial year. He said he first raised the issue in Parliament in March 2016 before making a further 34 disclosures between 2016 and 2018 concerning alleged governance failures, investment losses and Tabung Haji’s links to the 1MDB scandal during the previous Barisan Nasional administration.
According to Rafizi, those disclosures resulted in his arrest, prosecution and the threat of imprisonment, while he also faced accusations of undermining confidence in Tabung Haji among Muslim depositors.
He further claimed that the issue had become a key political campaign point for PKR and Pakatan Harapan over the past decade, adding that the latest public debate surrounding the RCI report stemmed from remarks he made during the Johor state election campaign a month ago criticising what he described as political compromises involving the unity government.
RCI report confirmed five key issues.
Among them, he said, were findings that suspicious transactions and attempts to conceal information had resulted in billions of ringgit in losses.
He also pointed to the commission’s finding that Tabung Haji’s reserves had turned negative from the 2015 financial year and deteriorated further by 2017, leading the Pakatan Harapan administration under Tun Dr Mahathir Mohamad to approve a RM19.9 billion financial restructuring package, which he said would amount to approximately RM27.8 billion upon maturity after financing costs.
Rafizi further highlighted the commission’s findings that hibah, or profit distributions, continued to be paid between 2014 and 2017 despite the fund’s negative reserve position, allegedly for political reasons.
He claimed the report also found that Tabung Haji had adopted internal accounting practices that enabled hibah payments despite negative reserves, which he said conflicted with existing legislation and Malaysian as well as international financial reporting standards.
In addition, Rafizi noted the RCI’s conclusion that the RM27.8 billion bailout through Urusharta Jamaah Sdn Bhd represented a temporary solution dependent on the Federal Government’s ability to meet its future obligations.
Rafizi expressed support for most of the commission’s recommendations, including holding former board members, senior management and decision-makers accountable for their roles.
He also backed calls for forensic accounting investigations alongside criminal probes involving the Malaysian Anti-Corruption Commission (MACC), Securities Commission Malaysia, Royal Malaysia Police, Bank Negara Malaysia and other relevant enforcement agencies.
He agreed that the government should openly review the country’s haj financing model to ensure pilgrimage subsidies remain financially sustainable without jeopardising Tabung Haji’s long-term viability.
However, Rafizi argued that stronger legal measures were necessary beyond those proposed by the RCI.
He suggested introducing legislation that would impose criminal liability on ministers, senior civil servants, board members and top management for serious misconduct occurring under their supervision, even if they did not personally benefit from the alleged wrongdoing.
Rafizi said the statement marked his first formal response to the RCI report on behalf of himself and his political movement, adding that he would publish further analyses and disclosures on the report’s findings in the coming weeks.
He also questioned claims by Prime Minister Datuk Seri Anwar Ibrahim that Tabung Haji had been successfully restored, arguing that despite improvements, the institution remained exposed to long-term financial sustainability risks.
