TH recovers bonuses paid to Properties board members

KUALA LUMPUR: The Tabung Haji (TH) has already taken steps to recover bonuses paid to its board members, following recommendations made by the Royal Commission of Inquiry (RCI) into TH's affairs, said Dr Zulkifli Hasan, Minister in the Prime Minister's Department (Religious Affairs). The recovery accounted for 75% of the RCI's recommendations, which were discussed in a recent debate in the Dewan Rakyat.

The RCI identified weaknesses in TH's valuation and financial reporting methods from 2014 to 2017, including the use of realizable asset value, which overstated the institution's financial position. Hasan explained that this led to a discrepancy between TH's financial standing and its actual condition.

Addressing the issue of bonuses, the RCI found flaws in the assessment of TH's financial position, emphasizing the need for remuneration and incentives to align with the institution's actual performance. Hasan noted that the RCI's findings have led to the implementation of stronger internal controls, financial reporting, and accountability measures within TH.

In addition, the RCI highlighted the lack of policies limiting the number of companies an individual could serve as a nominee director for, which could lead to conflicts of interest. Hasan confirmed that this concern had been addressed based on the RCI's recommendations, with new policies now in place to strengthen oversight and ensure effective responsibility management.