Finance Minister II: Seven of Tabung Haji’s 14 troubled investments ended in total losses, Saudi-based deal caused biggest hit

Bersatu leader Muhyiddin Yassin has urged the government to finish a thorough and impartial forensic audit of Tabung Haji's administration within a year. After the Royal Commission of Inquiry (RCI) investigation into the pilgrim fund, he stated that the audit was necessary to track money movement and uncover fraud, abuse of authority, and carelessness.

Due to the intricate governance issues and losses in Tabung Haji's fund management, an extensive and ongoing forensic audit should commence immediately and be finished within twelve months.

Muhyiddin emphasized that anyone accountable for causing losses to Tabung Haji's funds, whether through fraud, abuse of authority, or negligence, should be held accountable. The 211-page RCI report exposed governance weaknesses, such as political influence in management and profit distribution without proper accounting for depreciation or declines in the fair value of investments.

The report also revealed that Tabung Haji should have reported a net loss of RM1.4 billion in 2017, rather than the announced RM3.4 billion profit, if Malaysian Financial Reporting Standards were strictly applied.

Muhyiddin noted that the RCI's conclusion that Tabung Haji incurred estimated cumulative losses of RM10 billion to RM12.6 billion from 2014 to 2020 called for serious consideration and decisive action without exception. He pointed out that critical investment decisions involving billions of ringgit were made without adequate risk assessment, putting depositors' funds at considerable risk.

These losses were concealed through manipulative accounting, while the government at the time claimed that Tabung Haji remained profitable despite the RCI report showing the organization had actually suffered billions of ringgit in losses.

Muhyiddin questioned how negligence or the falsification of Tabung Haji's financial reports could be permitted to happen. He stressed that this situation must never reoccur and those involved must face severe consequences. He added that restoring public trust in Tabung Haji necessitates the government to fully implement the RCI's recommendations, act on the findings of the proposed forensic audit, and strengthen governance to protect depositors' funds.