BNM issued five warning letters to Tabung Haji leadership over asset-liability gap
KUALA LUMPUR, Aug 11 — Bank Negara Malaysia (BNM) had issued five warning letters to the Tabung Haji (T...
KUALA LUMPUR, Aug 11 — Bank Negara Malaysia (BNM) issued five warning letters to Tabung Haji (TH) leadership over a significant asset-liability gap. The Minister of Religious Affairs, Zulkifli Hasan, informed that TH's management was advised to rectify the situation to prevent potential systemic risk to the country's financial stability.
The warning letters were disregarded by TH's leadership. Following the reprimand from authorities, TH appointed international audit firm PricewaterhouseCoopers (PwC) in 2018 to reassess its financial position according to valid accounting standards. PwC's subsequent report confirmed financial manipulation, revealing that only RM556 million of the total RM4.6 billion assets were valued by professional valuers.
The Royal Commission of Inquiry (RCI) report, released on July 29, 2022, detailed weaknesses in TH's management and operations from 2014 to 2020, recommending 25 improvements, 75% of which were implemented by July 30, 2022.
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