The financial losses arising from the mismanagement of Lembaga Tabung Haji (TH) between 2014 and 2020 amounted to nearly RM13 billion, with the burden ultimately shared by the Government, taxpayers and TH depositors, the Ministry of Finance said.
The figure was disclosed during a special sitting of the Dewan Rakyat to debate the findings of the Royal Commission of Inquiry (RCI) into TH’s management and operations for the 2014-2020 period.
Finance Minister II Senator Datuk Seri Amir Hamzah Azizan said the losses comprised RM10.2 billion borne by the Government through Urusharta Jamaah in 2018, together with RM2.6 billion in impairment losses absorbed by TH itself.
“The mismanagement of Tabung Haji is borne by everyone,” Amir Hamzah said, noting that losses transferred to the Government were ultimately borne by taxpayers, while losses retained by TH affected depositors.
He stressed that accountability must follow from the RCI’s findings, given that the financial burden arising from past decisions had been distributed across the wider population.
Minister in the Prime Minister’s Department (Religious Affairs) Senator Dr Zulkifli Hasan, who presented the Government’s response to the RCI debate, said the issue must be viewed through the lens of the trust placed by millions of Malaysians in TH.
“When a trust of this magnitude is compromised, we cannot hide behind the numbers,” he said, adding that the Government must acknowledge the weaknesses identified, correct them and ensure that similar failures are not repeated.
The RCI identified 14 problematic TH investments, with concerns raised over investment approval processes, concealment of information and manipulation of investment suitability reports.
Of the 14 investments highlighted, seven were found to have lost 100% of their investment value.
Among them were Al-Rawda, involving RM1.8 billion, Putrajaya Perdana at RM193 million and Trurich Resources at RM364 million.
The Government said five investigation papers have been opened, while civil claims are being pursued both domestically and overseas.
Investigations also include allegations concerning a former chairman and two senior management personnel in relation to unexplained wealth.
The Government stressed that it would not interfere in investigations or protect any individual, with decisions on prosecution resting entirely with the Public Prosecutor.
In response to the RCI’s recommendations, the Government said amendments to the Tabung Haji Act 1995 (Act 535) would be pursued to strengthen governance and oversight of the institution.
