Nurhisham sees déjà vu in Tabung Haji RCI findings

Economic adviser to the Prime Minister's Office, Nurhisham Hussein, expressed concerns regarding the Tabung Haji (TH) assets acquisition at inflated prices and the lack of proper due diligence during a dialogue organized by Himpunan Gerakan Islam Malaysia. He noted that the recent royal commission of inquiry (RCI) report on TH gave him a sense of déjà vu, similar to the issues surrounding FGV Holdings Bhd, a subsidiary of Felda.

Hussein highlighted that TH assets were purchased without sufficient security and without proper due diligence, echoing the same issues seen with FGV Holdings. The Felda subsidiary faced significant losses due to mismanagement and excessive political interference, with the federal government shouldering nearly RM1 billion in debt repayments annually.

Despite the RCI findings revealing financial mismanagement at TH, Hussein reassured the audience that Malaysia was not facing a debt crisis like Argentina or Greece. He emphasized that the Malaysian government had always honored its financial obligations and paid its dues.

Regarding the original sukuk issued by Urusharta Jamaah Sdn Bhd, which was a zero-coupon sukuk, not providing TH with annual returns, Hussein explained that the sukuk matured and was replaced with a new one that includes an annual profit component. The RCI report attributed TH's financial pressure between 2014 and 2020 to excessive hibah commitments, questionable accounting practices, weak oversight, ambitious investment strategies, and rising subsidy obligations.