Enforcement Agencies Ramp Up Probes Into Tabung Haji Irregularities Following RCI Findings Ahead of Parliamentary Debate

KUALA LUMPUR, Aug 8 — Enforcement agencies across Malaysia have significantly escalated legal action following the public release of the Royal Commission of Inquiry (RCI) report on Lembaga Tabung Haji (TH), with multi-agency investigations zeroing in on key individuals linked to alleged managerial and financial irregularities at the pilgrimage fund.

Action has intensified across multiple regulatory fronts, with the Malaysian Anti-Corruption Commission (MACC) remanding five individuals as of yesterday to assist in ongoing investigations into misconduct uncovered in the comprehensive 211-page report released on July 29.

Those remanded for terms ranging between three and five days comprise individuals from technical and corporate backgrounds, including a former plantation manager, a design firm director, a deputy general manager of construction, an occupational safety and health manager, and a project director at a property subsidiary owned by a statutory body.

In a separate move, the MACC Special Task Force detained the former chief executive officer (CEO) and former chief financial officer (CFO) of a statutory body on August 4 over suspected abuse of power involving a RM370 million share acquisition in two plantation companies. Both suspects, aged 68 and 60, were subsequently released on health grounds, with the former CFO concluding four days of statement recording yesterday while the former CEO remains on medical leave.

Concurrently, the Royal Malaysia Police (PDRM) through its Commercial Crime Investigation Department (CCID) has opened five official investigation papers following nine police reports lodged by Tabung Haji, its subsidiaries, and members of the public.

CCID Director Datuk Rusdi Mohd Isa confirmed that law enforcement officers are actively gathering testimony and documentation across borders to complete the investigations.

“Investigators are in the process of recording statements from witnesses in Malaysia and abroad, as well as obtaining relevant documents to complete the investigations,” CCID Director Datuk Rusdi Mohd Isa stated.

In tandem with criminal probes, the Inland Revenue Board (IRB) has initiated tax risk analysis into several prominent individuals after detecting severe discrepancies between their luxury asset ownership and declared income, executing raids across multiple premises to seize critical documents and verify financial compliance.

The RCI report, which thoroughly examined Tabung Haji’s management and investment operations between 2014 and 2020, exposed widespread governance vulnerabilities and alleged excessive political interference in haj operations and dividend distributions.

Among the report’s most striking revelations was that Tabung Haji ought to have recorded a net loss of RM1.4 billion for the 2017 financial year, but instead reported an extraordinary profit of RM3.4 billion in its official financial statements.

Citing severe asset impairment, the royal commission recommended forensic audits into high-risk investment holdings involving PT TH Indo Plantations, Emrail Sdn Bhd, Wellspring Worldwide Limited, Abraj Sdn Bhd, Putrajaya Perdana Bhd, TH Plantations Bhd, TH Properties Sdn Bhd, Alam Maritim Resources/TH Marine, TH Hotel & Residences Sdn Bhd, and FGV Bhd, which allegedly resulted in catastrophic losses to depositors’ funds.

The report further recommended recovering RM2.19 million in bonuses paid to TH Properties’ board of directors and executive management after finding the payouts violated established regulations, while characterizing bonus distributions ranging between two and 13 months’ salary awarded to TH staff between 2010 and 2017 as excessive and unjustifiable given the institution’s true financial standing.

These findings and ongoing law enforcement probes will come under intense parliamentary scrutiny during a special Dewan Rakyat sitting scheduled for August 11, where between 35 and 40 Members of Parliament are expected to participate in a continuous debate without recess, as confirmed earlier by Communications Minister Datuk Seri Fahmi Fadzil.

–NMT