Azalina: TH has implemented 76pct of RCI recommendations

KUALA LUMPUR: Issues concerning governance weaknesses or legal violations in Lembaga Tabung Haji (TH) must be addressed through due process based on evidence and existing laws.

Minister in the Prime Minister's Department (Law and Institutional Reform) Datuk Seri Azalina Othman Said said this is because the government respects the rule of law and judicial independence.

"Therefore, the government leaves it entirely to the courts to decide based on facts, evidence, and prevailing legal provisions.

"In this regard, the government consistently upholds the principle that in any criminal case, the due process and prosecution must be carried out independently without interference," she said in a written reply published on the parliament portal today.

She was replying to Datuk Awang Hashim (PN-Pendang) regarding follow-up actions against individuals or parties identified as having governance weaknesses based on the findings of the TH Royal Commission of Inquiry (RCI).

On the recovery of losses, Azalina said TH has taken follow-up measures to deal with problematic investments highlighted in the RCI report, besides appointing several accounting and legal firms.

The appointments, she said, were aimed at conducting gap analyses and submitting recommendations for improvements, with a recovery and restructuring plan implemented since 2018 to address the bulk of past losses and asset impairments.

She said nearly RM10 billion of the approximately RM12.6 billion in investment losses had been resolved through the 2018 recovery plan, while the remaining balance of nearly RM2.6 billion was being addressed in stages through the end of 2025.

"Since 2018, TH has continued to record total assets exceeding total liabilities at the end of every financial year, in accordance with the requirements of the Tabung Haji Act 1995 (Act 535). Profit distribution rates have also shown gradual increases.

"Last year, TH declared a profit distribution of 3.5 per cent, the highest in eight years, while TH has also rebuilt its reserves to strengthen its future financial position," she said.

Commenting on the 25 RCI recommendations, Azalina said 17 were under TH's implementation responsibility, while the remaining eight involved other parties, including the Finance Ministry, Urusharta Jamaah Sdn Bhd (UJSB), and relevant authorities.

To date, she said, TH has implemented 76 per cent of the RCI recommendations under its purview, namely 13 out of 17 recommendations covering governance enhancements, financial reporting, investment and risk management, as well as decision-making processes.

"The remaining four recommendations are still being acted upon by TH and involve matters relating to amendments to Act 535, including related regulations such as disciplinary rules, as well as the regulatory scope of Bank Negara Malaysia or the Securities Commission.

"The other eight recommendations fall under the responsibility of other parties. These largely pertain to strengthening the UJSB Sukuk structure and its offering terms, early redemption, government allocations, and enforcement actions," she said.