Tabung Haji findings: a case of harapkan pagar, pagar makan padi

 The RCI report also makes a good case for why politicians should not stick their noses into investment fund entities.

“Harapkan pagar, pagar makan padi” – the essence of this Malay proverb roughly translated reads how one is consumed by the very party that one expects to protect it.

In an article just prior to the last state election in Johor, I contended that “some politicians are fools and some others, perpetual liars”.

With due respect, I am obliged to speak also of the other cohort of politicians who operate at nothing less than genius level. Their self-sacrificing work, above and beyond the call of duty, has to be acknowledged.

Our economy is full steam ahead, notwithstanding challenges with a reported GDP growth above 5%. Charting the nation’s economy on the right path needs to be taken on board.

And then there are state elections, to add flavour to the mundaneness of life.

This is another front where political ingenuity is there to be seen, appreciated and applauded. Suddenly there is name calling, distortion of speeches and “fake” news calculated to mislead and “maim” political opponents.

Their unquestionable timing in initiating reforms and upgrades, though delayed on certain fronts, presumably due to political horse trading, leaves one in awe.

It is up to one to speculate on the timing of the release of the much awaited royal commission of inquiry (RCI) on Tabung Haji (TH). All said and done, as a citizen, as with many, I am glad it is now in the public sphere.

It should be noted that the report was submitted to the Yang di-Pertuan Agong in 2022 and it had a slow meandering journey to its release almost four years later after declassification. Really?

Such questionable conduct directly attributable to politicians, as alluded to in the report, should have hit the roof much earlier. This is the crux of reform; not hyperventilating at ceramahs to boost one’s political standing.

The excuse that it will affect foreign investor confidence is poppycock. Investors are shrewd and know what is in the melting pot even before they commit their millions.

The release has opened a Pandora’s box.

The chairman and the panel of the RCI should be applauded for the breadth and depth of the report which leaves no stone unturned. In my view as an internationally certified internal auditor and fraud investigator, this is a commendable piece of work.

It is a textbook example, which is good reading at business schools, as to why politicians should not stick their noses into investment fund entities.

Firstly, they are already mentally challenged – how does one record a reported RM3.4 billion profit when it should have been a RM1.4 billion loss under proper accounting standards?

As a past member of the Malaysian Accounting and Standards Board under the purview of the Malaysian Institute of Accountants, I find this most distressing as accounting norms were creatively distorted to reflect such positive financials.

A slew of accountants were at the helm at TH. They need to answer, especially those who earned hefty bonuses. Is this not tainted remuneration?

The conduct of the national audit department was also called into question for failing to adopt a firmer stand. Are our institutions compromised or is it just oversight?

I vividly recall the testimonies at the 1MDB-related trials of alleged “interference and/or influence” in another audit report involving the national audit department.

Good governance is all about integrity and trust. This was sadly lacking at TH.

It is reported that board appointments were determined by the political masters. Some directors were appointed to sit on the board of subsidiaries as well, which the report noted.

In essence, there is nothing wrong with this from a governance perspective. As an ex- banker who served at Maybank, this was our commendable practice because it ensured the main board had its “feelers” out at subsidiaries to know about any questionable conduct.

Unfortunately, unlike Maybank, TH was shortchanged in not having directors who subscribed to good governance practices as these subsidiaries entered into questionable ventures, some of which they had limited technical knowledge about.

To be clear, several board chairman and members appointed between 2014 and 2018 were active politicians. Academic research can attest to the levels of integrity and trust among politicians!

The excessive ministerial powers under the Tabung Haji Act 1955 is noted in the report.

Could they have been subject to possible political interference as the remunerations were sizeable, even when losses were being reported? This is left to interpretation. Oh why?

This piece is not to repeat what is in the RCI report. Blood has been spilled and at the most opportune time, in the minds of many.

Ask any comedian or professional musician or dancer and they will say, “It’s all in the timing”: the punchline, the cymbal clash or the pirouette.

What matters is what comes now. Is it more twiddling of thumbs and sad faces at press conferences, expressing dismay and feigned remorse?

The deputy prime minister has indicated that stern action without compromise will be taken against those involved. There has to be no compromise on this if we are to take the words of politicians seriously. The country looks to the prime minister to “put things right”.

If we can amass a litany of lawyers to bring to book, including through incarceration, those involved in the 1MDB scandal, surely this is a walk in the park.

A figure of RM10 billion is being floated as the cost of these alleged mismanagements stemming from political interference and manoeuvrings. A bitter pill, as it relates to funds to fulfil a religious purpose. Have we completely lost our moral bearings? If so, it is sad.

The RCI findings will weigh heavily on the minds of voters at the next state election. The rest of us, while expressing anguish, can only pray that the professional work done by the RCI bears fruit in emasculating those who were in positions of influence at the material time. - FMT

This is what the reform agenda is about.

The views expressed are those of the writer and do not necessarily reflect those of MMKtT.