Probe possible tax evasion involving TH, urges EAIC adviser

On July 29, the RCI report unveiled questionable findings regarding Tabung Haji's (TH) management and governance from 2014 to 2020. An EAIC adviser, Mazlan Ahmad, has urged the Inland Revenue Board (LHDN) to investigate potential tax evasion within the TH group and its subsidiaries.

Mazlan contends that forensic accounting should be employed to trace the flow of funds, encompassing their origin, destination, and beneficiaries. He expresses confidence in the occurrence of tax evasion within the group and its subsidiaries in commercial sectors, suggesting that the LHDN must conduct a thorough examination. Mazlan also advocates for an investigation into possible money laundering, emphasizing that the probe should extend beyond management and board level to include the broader ecosystem surrounding the institution and its transactions.

He underscores that TH's governance issues, as highlighted by the RCI, are systemic rather than isolated to individual executives. One fundamental problem identified by the RCI is the lack of robust governance, particularly at the board level. As a chartered accountant and council member of the Malaysian Institute of Accountants, Mazlan stresses that the board of directors holds a fiduciary duty to oversee, regulate, and steer the organization.

They are accountable for the actions of management and must fulfill their fiduciary duty by implementing checks and balances.

A special Dewan Rakyat session is scheduled for August 11 to discuss the RCI report.