The Malaysian Anti-Corruption Commission (MACC) has confirmed that seven individuals have been detained so far in investigations arising from the findings of the Royal Commission of Inquiry (RCI) into Lembaga Tabung Haji (TH), as authorities widen their probe into alleged financial and governance irregularities at the pilgrimage fund.
MACC has launched several investigations into matters highlighted by the 211-page report, including suspected abuse of power, alleged misappropriation and questionable transactions involving TH and entities linked to the institution.
The commission’s investigations have so far involved individuals from various professional backgrounds, including former senior executives, a plantation manager, a design company director, construction and occupational safety personnel, and a project director linked to a statutory body’s property company.
Among the most significant investigations is a case involving the alleged abuse of power in the acquisition of shares in two plantation companies valued at RM370 million.
A former chief executive officer and former chief financial officer of a company owned by a statutory body were detained in connection with the investigation. Both were subsequently released on health grounds and were required to continue assisting investigators. The case is being investigated under Section 23 of the MACC Act 2009.
Separately, MACC has investigated an alleged RM300,000 bribe involving a design company director, who is suspected of providing renovations to four houses belonging to a former chief operating officer in return for assistance in securing renovation projects.
Another investigation concerns the alleged misappropriation of about RM8 million involving a contract for the supply of rubber seedlings, while three individuals were also detained over an alleged RM450,000 misappropriation involving notices of penalty.
The scale and complexity of the issues identified in the RCI report could also see Malaysia seek assistance from foreign forensic specialists as investigators work to trace transactions and establish the circumstances surrounding problematic investments.
The RCI itself recommended forensic audits into a number of troubled investments, particularly where it identified suspicious transactions, information concealment and weaknesses in investment decision-making.
The move would potentially allow investigators to draw on specialist expertise in forensic accounting, transaction tracing and cross-border financial investigations, particularly where transactions involve overseas entities or assets.
The RCI identified 14 troubled investments for further forensic examination and recommended that those involved in investment decisions that resulted in losses be held accountable where appropriate.
However, the investigations remain ongoing and the involvement of any external or foreign forensic firm should not be taken as evidence of wrongdoing by any particular individual or entity.
