Tabung Haji Act amendments under way

 The RCI report on TH’s management and operations recommended amendments to the Tabung Haji Act 1995 to enhance the board’s governance and regulatory framework.

Religious affairs minister Zulkifli Hasan said amendments to the Tabung Haji Act 1995 aim to strengthen the pilgrim fund’s legal framework and management. (Bernama pic)

PETALING JAYA:

Engagement sessions with stakeholders are currently going on to gather feedback on proposed amendments to the Tabung Haji Act 1995 (Act 535), as recommended by a royal commission of inquiry (RCI).

In a Bernama report, religious affairs minister Zulkifli Hasan said the amendments are aimed at strengthening the pilgrim fund’s legal framework and management.

He said the government is committed to ensuring that all feedback gathered from the engagement sessions is fully considered to further improve the management of the haj institution.

“We have already held engagement sessions with stakeholders. God willing, we will obtain the best feedback and input to uplift this institution,” he told reporters after a programme in Kuala Lumpur.

The RCI report on TH’s management and operations, which was made public on Wednesday, recommended amendments to the Tabung Haji Act 1995 to enhance the board’s governance and regulatory framework.

On the overall progress of implementing the RCI’s recommendations, Zulkifli said most of the proposals had been successfully carried out, with their impact reflected in TH’s stronger financial position and improved governance.

“Today, we see that TH has undergone a very positive transformation, with its reserves and dividend rates increasing. Governance has also improved.

“In fact, we have received recognition as the best haj management institution in the world,” he added.

The RCI found, among others, that TH concealed the true state of its finances for years, reporting a RM3.4 billion profit for 2017 when it should have recorded a RM1.4 billion net loss under proper accounting standards – a shortfall of nearly RM4.8 billion.

It also found that senior officers implicated in multiple misconduct cases had their penalties repeatedly watered down on appeal, with all five involved still employed at TH or its subsidiaries as of 2022.

The RCI report said that TH employees received “excessively high” bonuses ranging from two to 13 months’ salary between 2010 and 2017, including a special bonus payout in 2014 that cost the institution RM74 million. - FMT