TH RCI: MCW questions why former auditor general not called to testify

 

Malaysia Corruption Watch has questioned whether all evidence relating to the Tabung Haji issue was fairly tested before conclusions were reached by the Royal Commission of Inquiry, particularly given that former Auditor-General Tan Sri Dr Madinah Mohamad was not called to testify. FILE PIC

KUALA LUMPUR: Malaysia Corruption Watch (MCW) has questioned whether all evidence relating to the Tabung Haji (TH) issue was fairly tested before conclusions were reached by the Royal Commission of Inquiry (RCI), particularly given that former Auditor-General Tan Sri Dr Madinah Mohamad was not called to testify.

MCW said the RCI report showed that Madinah had submitted a statutory declaration as a witness but was not called to give evidence before the commission.

This was despite the RCI subsequently making critical assessments of the actions of the then Auditor-General, it said.

"MCW's question is not who we should blindly believe, but whether all evidence was fairly tested before conclusions were reached.

"In fighting corruption, we must have the courage to pursue the truth, even when it does not support any political narrative. Corruption must be proven, mismanagement must be held accountable and audits must be open to scrutiny. But slogans cannot replace evidence," it said in a statement today.

The statement follows a report by Berita Harian that Madinah said the RCI's findings on TH might have been different had she been called to testify as the former Auditor-General.

Madinah said the 2017 Auditor-General's Report, prepared by her and her team, did not identify evidence of direct theft at TH.

She had said she would be the first to lodge a report with the authorities if direct theft at the institution during the period examined by the RCI was proven.

MCW said Madinah's explanation had introduced an aspect that warranted closer examination in the debate over TH.

It said the issue was no longer simply about determining who was right or wrong, but about distinguishing between audit findings, professional judgment, governance failures and allegations of misconduct.

"An audit by the National Audit Department recorded TH's 2017 profit at about RM3.4 billion. A Financial Position Review by PricewaterhouseCoopers (PwC), after adjustments of nearly RM4.8 billion, resulted in an adjusted loss of about RM1.4 billion.

"However, the two reviews had different mandates, scopes and approaches. Impairment does not necessarily mean embezzlement.

"Asset impairment is an accounting issue. It may point to poor investment decisions, weaknesses in risk management or disputed accounting policies.

"But to claim that money was embezzled, we need evidence of who took it, how it was taken and where it went.

"At the same time, this argument cannot be used to dismiss the RCI's serious findings. The RCI questioned TH's impairment policy, asset-liability position, hibah payments and the National Audit Department's audit decisions. All these issues must be addressed substantively," it said.

The RCI report, published on July 29, found that TH should have recorded a net loss of RM1.4 billion in the 2017 financial year, instead of the RM3.4 billion profit reported in its financial statements.

The report said that if Malaysian Financial Reporting Standards (MFRS) had been fully applied for 2017, TH would have recorded the net loss, indicating that its financial position was already critical that year. - NST