TH recovers bonuses paid to Properties board members [WATCH]

KUALA LUMPUR: The Tabung Haji (TH) has taken action to recoup bonuses paid to its board members, as recommended by the Royal Commission of Inquiry (RCI) into TH's governance. Minister in the Prime Minister's Department (Religious Affairs) Dr Zulkifli Hasan revealed that 75% of the RCI's recommendations have already been implemented, including the recovery of bonuses totaling up to 13 months.

The commission identified several weaknesses in TH's financial reporting and valuation methods, particularly the use of realisable asset value, which understated the institution's true financial position. The RCI also found that remuneration and incentives were not accurately aligned with TH's actual performance, leading to excessive bonuses.

Zulkifli emphasized the need to strengthen internal controls, financial reporting, and accountability within TH. Additionally, the commission noted the absence of policies limiting the number of companies an individual could serve as a nominee director, highlighting the necessity to address conflicts of interest and strengthen oversight mechanisms.

These measures have also been put in place based on the RCI's recommendations. The 211-page report uncovered further governance issues, such as political influence in management decisions and the distribution of profits without proper accounting for depreciation and investment value declines. The RCI concluded that TH should have reported a net loss of RM1.4 billion in 2017, rather than the reported RM3.4 billion profit, if Malaysian Financial Reporting Standards (MFRS) had been fully applied.