Radzi Jidin Demands Forensic Audit Over Tabung Haji’s Failed RM259m Deru Semangat Deal

PUTRAJAYA, Aug 4 — Putrajaya Member of Parliament Datuk Dr Radzi Jidin has called for an immediate forensic audit into Lembaga Tabung Haji (TH) following Royal Commission of Inquiry (RCI) disclosures regarding a failed RM259 million joint-venture investment in oil palm company Deru Semangat Sdn Bhd.

Citing pages 138 to 143 of the official RCI report, Radzi pointed out that the commission identified suspicious transactions and information concealment after the then Minister of Religious Affairs approved a RM526.16 million joint venture in 2014 and 2015 to develop oil palm plantations in Pahang. The approved deal included acquiring a 55 percent controlling equity stake in Deru Semangat Sdn Bhd for RM231 million, alongside RM295.16 million allocated for land development.

Radzi noted that although TH disbursed RM257 million by January 2021 toward equity acquisition and estate development, the project ran into severe legal and operational obstacles when land development activities were found to involve illegal logging within a permanent forest reserve.

Following the complication, TH wrote down the value of its RM257 million investment to just RM32 million. TH ultimately surrendered its entire 55 percent equity stake back to the original owners, leaving the pilgrims’ fund with zero shares in Deru Semangat Sdn Bhd in exchange for being relieved of its remaining RM258 million funding obligation.

Highlighting that TH disbursed a total of RM259 million across the entire transaction, Radzi questioned what tangible benefits TH and its depositors actually derived from spending RM259 million when the fund now holds no remaining shares in the company.

Radzi stressed that the RM259 million sum is staggering, noting that it exceeds TH’s total haj financial assistance allocation for 2026, which stands at RM210 million. He questioned whether proper due diligence and land status checks were conducted prior to approving the investment in 2014 and 2015, reiterating his strong support for a full forensic audit into the transaction.

–NMT