The Institute for Democracy and Economic Affairs (IDEAS) has called on the government to implement comprehensive governance reforms following the release of the Royal Commission of Inquiry (RCI) report into Lembaga Tabung Haji (TH), warning that the findings highlight deep-rooted structural weaknesses in the management of federal statutory bodies.
While welcoming the publication of the long-awaited report, IDEAS said it should have been released much earlier rather than just days before the Negeri Sembilan state election, arguing that the timing risked turning the findings into a political campaign issue instead of serving as the basis for meaningful institutional reform.
The think tank said the RCI’s findings revealed significant political interference in Tabung Haji’s governance, particularly through politically appointed board members who were involved in key financial decisions affecting the institution.
Among the most serious findings cited by IDEAS was the Commission’s conclusion that Tabung Haji should have recorded a RM1.4 billion loss in 2017, instead of the RM3.4 billion profit that was reported. The RCI also found that a RM2.75 billion hibah was declared despite concerns raised during the audit process.
According to IDEAS, the findings underscore the risks of allowing political considerations to influence decisions that should instead be guided by professional judgement, fiduciary responsibility and the long-term interests of the millions of Muslim depositors whose savings are managed by Tabung Haji.
The organisation said the issues identified by the RCI mirror concerns it has previously highlighted through its Pantau Kuasa initiative, which examines governance practices within federal statutory bodies.
IDEAS noted that its report, Who Sits at the Table?, found that 78% of chairperson positions across 135 federal statutory bodies lack clearly defined qualification criteria, leaving appointments subject to broad discretion with limited transparency.
It warned that such governance gaps weaken institutional independence and increase the risk of public bodies becoming vulnerable to political influence.
IDEAS Chief Executive Officer Aira Azhari said public confidence in institutions depends not only on financial performance but also on sound governance and accountable decision-making.
She said the RCI findings should be used to strengthen safeguards that protect statutory bodies from undue political influence, adding that the organisation has consistently advocated for merit-based appointments, stronger institutional independence and enhanced parliamentary oversight.
The government has stated that about 75% of the RCI’s 25 recommendations have already been implemented. However, IDEAS urged Putrajaya to publish the implementation status of every recommendation, identify outstanding measures and provide a clear timeline for their completion to enhance transparency and public confidence.
Among its recommendations, IDEAS called on the government to amend the Tabung Haji Act 1995 to strengthen governance and clarify accountability, introduce transparent and merit-based appointment processes for statutory bodies with clear qualification criteria and independent candidate screening, enhance parliamentary oversight, and ensure any wrongdoing identified by the RCI is investigated independently regardless of political affiliation.
The organisation said the RCI should serve as a turning point for Tabung Haji, stressing that restoring public trust will require not only accountability for past shortcomings but also a sustained commitment to transparency, integrity and governance free from political interference.
