Investigate Tabung Haji’s Investment Blunders

I am deeply concerned with Lembaga Tabung Haji’s (LTH) continued missteps in its investment decisions affecting its 5.1 million depositors. Recently its investment in Silver Bird Group Bhd – which has received much negative press from concerned quarters including the Muslim Consumers Association Malaysia (PPIM) has come into question.

Silver Bird Group Bhd was designated a PN17 status (Practice Note 17 Financial Distress Status) since February 29, 2012 by Bursa Malaysia. Silver Bird’s woes affects LTH as the latter is one of the largest shareholders in the former (22.19%); leaving LTH exposed to Silver Bird’s estimated RM111.5 million financial shortfall.

Pattern of Questionable Investment and Decision Making

This is not an isolated case, as Ramunia Holdings Berhad, a company which is 25.17% owned by LTH, is similarly listed as a PN17 company. Needless to say, LTH’s investments in various listed companies have been under much scrutiny in the last few years.

Besides the investment in Silver Bird Group Bhd and Ramunia Holdings Bhd, there is also the case of an unfair tender conducted for IT related project named “Queue Management System” -and ended up being awarded to less experienced individuals. Just last week, PPIM had urged the Malaysian Anti Corruption Commission (MACC) to investigate the alleged irregularities in relation to the said project tender. (PPIM, 14 Mac 2012)

Additionally, the newly appointed yet sudden resignation of LTHs Chief Investment Officer (CIO), Halim Alias after Petra Perdana’s EGM on Feb 4th 2010 further reinforces the notion that the LTH’s decision making and investment foray is in fact, problematic.

A report with the MACC was also lodged, leading to the investigations of five members of a syndicate, including Tabung Haji officers, who have allegedly been offering “express haj” services to pilgrims.

Immediate Action Must be Taken

Former Chairman and General Director of TH, Tan Sri Hanafiah Ahmad said that an independent investigation should be expedited because of the many activities by the board’s investment panel being questioned by depositors. (March 7, 2010 Utusan Malaysia). At the same time, the Secretary General of the Federation of Malaysian Consumer Associations (Fomca) Sha’ani Abdullah said: “accountability and transparency of LTH investment is not satisfactory.” (February 27, 2010, StarBiz)

The pattern of consistent investment failures have led to the questioning on the integrity investment decision making made, especially a concern for all LTH depositors. Immediate and decisive action must be taken to allay depositors fear and doubts on the viability of LTHs investments.

I therefore urge Datuk Jamil Khir Baharom, Minister in the Prime Minister Office, to appoint an independent auditor to investigate in detail the activities of all LTH investments and its subsidiaries to that the investment and fund management decision making is free from any allegations of fraud and wrongdoing.

I hope that the truth in these issues will be discovered and disclosed, in the interest of many Malaysians who have entrusted their savings as well as belief in Lembaga Tabung Haji.

Nurul Izzah Anwar
Lembah Pantai, M.P.
Vice President, Parti Keadilan Rakyat