RM4.8 bilion beza laporan bukan bukti audit TH gagal, kata Madinah

Former State Auditor General Madinah Mohamad stated at the National Consultative Forum 'Reality and Perception: Let Us Not Politicize Tabung Haji' in Kuala Lumpur today that a difference of approximately RM4.8 billion between the National Audit Department's report and PricewaterhouseCoopers (PwC) assessment on the financial condition of the Tabung Haji (TH) cannot be considered as evidence of audit failure.

She explained that both assessments were conducted based on different mandates, objectivity, scope, and methodologies, hence a direct comparison between them is like comparing apples to oranges. The difference in methodology and techniques is what leads to the two reports generating different figures, she said at the National Consultative Forum 'Reality and Perception: Let Us Not Politicize Tabung Haji', today.

Present were Umno President Zahid Hamidi, Deputy Chairman Asyraf Wajdi Dusuki, TH Women's Representative Noraini Ahmad, and PAS leaders including Deputy Chairman Takiyuddin Hassan and Awang Hashim. Madinah emphasized that the difference is specifically related to the methods of recognizing asset depreciation and investment valuation, including subsidiaries, federations, and investment assets.

She also stressed that no evidence of theft or mismanagement was found during her audit of TH. "If I and my team had found such evidence, I would have reported it and submitted it to the authorities. My mandate is clear. Audits are conducted according to standards, based on audit evidence before a statement or certificate is issued.

We follow the facts and evidence, besides being anchored in reality," she said. The National Audit Department conducted audits based on the Audit Act 1957 and the Tabung Haji Act for determining whether the financial statement accurately and faithfully presented the financial condition of TH in accordance with the relevant accounting standards at the time.

In contrast, PwC conducted a Financial Position Review based on different terms of reference with a broader approach in evaluating TH's financial position. Madinah clarified that the 2017 audit report prepared by the National Audit Department, including herself, did not identify direct evidence of theft within TH. She noted that the findings of the Royal Malaysian Communications Commission (RCI) regarding TH might differ if she were called to testify as the State Auditor at that time.

Madinah reiterated that the difference in figures between the two reports should not continue to be interpreted as evidence that the National Audit Department's audit process failed or failed to detect financial problems at TH. Earlier, the RCI had found that TH had been hiding its true financial position for several years, reporting RM3.4 billion profit in 2017 when it should have recorded a net loss of RM1.4 billion under correct accounting standards – a gap of nearly RM4.8 billion.

The RCI also criticized the National Audit Department for not rigorously auditing TH's financial statements from 2014 to 2017.