Senator says RCI vital to clarify Tabung Haji losses, systemic flaws demand scrutiny

Senator Muhammad Hasbi Muda emphasized the importance of the Royal Commission of Inquiry (RCI) in determining whether investment losses at Lembaga Tabung Haji (TH) were due to weak decision-making or other systemic issues. While noting that losses are a normal part of investments, Hasbi stressed the need for a comprehensive examination given the troubled investments identified.

On a recent television show, he highlighted that half of the 14 investments under consideration had lost 100% of their value, and TH's financial position from 2014 to 2018 had seen liabilities surpass assets. Hasbi explained that the RCI is necessary to ascertain if the loss was due to flawed investment panels or other issues. He defined "sakau" (unauthorized taking of money or property) as encompassing improper benefits like appointments or promotions, and offenses such as false claims and abuse of power.

Economist Professor Emeritus Dr Barjoyai Bardai agreed on the need for scrutiny, focusing on TH's flawed procedures, governance, and internal controls. Bardai pointed out that investment valuations, conducted by TH's management and board rather than independent professionals, have been problematic since 2014 and were ignored despite warnings from PricewaterhouseCoopers.

He suggested that TH reassess its investment management, potentially entrusting such functions to other institutions if it focuses solely on pilgrims and haj affairs. The RCI report, released on July 29, was discussed in a special session of the Dewan Rakyat on August 11.