Be strict with all deposit-taking institutions

Tabung Haji, like all other deposit-taking institutions, must be properly supervised and regulated. There are no two ways about it. Commercial banks including Islamic banks, EPF, LTAT, PNB and even listed companies which get funding through the issuance of bonds and shares to the public must be monitored to ensure responsibility and accountability.

It does not matter if the institutions are Islamic, non-Islamic, government, quasi government or private. All must adhere to the highest standard of prudence and governance. Any manipulation or malfeasance occurring in any of these institutions would cause great uncertainty and volatility in the financial market.

These institutions may hide their losses, camouflage impairment of their investments, or conceal mismanagement for a while, but they can’t put up a false front for long. Sooner or later, something is going to give. It is better for them to disclose these earlier rather than later.

First we had 1MDB and FGV, now we have Tabung Haji. I wonder what will be next.

I have many questions regarding the transfer of RM20 billion worth of assets from Tabung Haji to a SPV under the finance ministry. These are assets, according to the criteria set, that yield less than 2% return or stock investments that suffered more than 20% impairment.

Are these assets transferred at cost or at present value? I have a hunch that the finance ministry is now being made to “preserve” the value of these assets which have suffered munition due to poor investment decisions in the past. If not, Tabung Haji would have liabilities larger than assets and would therefore be unable to pay dividends to its depositors.

I urge the new government to be more transparent when trying to resolve the problem in Tabung Haji. Bailout, if any, must be clearly explained to the people.

I detest the report that said “Islamic assets” are now transferred to the finance ministry under a non-Muslim. How low can we get on exploiting religious and racial sentiments?

Managing deposit-taking institutions is no child’s play. I urge caution and strict adherence to standards. Get the right people with integrity, expertise and competency to manage these institutions, certainly not based on race and religion. We have had enough of malfeasance and I doubt our nation will be able to stomach more baloney.

TK Chua is an FMT reader.