7 of TH’s 14 troubled investments ended in total losses
Finance minister II Amir Hamzah Azizan says the 14 investments cost Tabung Haji and the government nearly RM13 billion.
Seven troubled investments among 14 identified in a royal commission of inquiry into Tabung Haji's financial management resulted in complete losses, Finance Minister II Amir Hamzah Azizan revealed in his final speech on the report. The investigation spanned Tabung Haji's management from 2014 to 2020, with the total losses amounting to nearly RM13 billion. The government covered RM10.2 billion during a 2018 rescue operation, while Tabung Haji itself absorbed an additional RM2.6 billion between 2018 and 2025.
Amir emphasized that the losses were not merely due to market conditions; some deals proceeded despite insufficient due diligence, weak safeguards, and warnings from Tabung Haji's own officers. The largest loss stemmed from an investment in Al-Rawda Real Estates Development & Project Management Co Ltd, a Saudi Arabian property development and project management company.
Tabung Haji leased four hotels in Mecca and Madinah to the company from 2015 to 2017, paying 1.4 billion Saudi riyals (approximately RM1.5 billion) to an intermediary. The company was expected to operate the hotels and pay Tabung Haji 2.49 billion Saudi riyals, but it defaulted on payments starting in Q1 2019, forcing Tabung Haji to recognize a RM1 billion impairment loss in 2024.
Written by urgent.news from Free Malaysia Today's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
