PETALING JAYA: Tabung Haji (TH) should remain a single entity but undergo a major governance overhaul, including barring active politicians from its board and conducting forensic audits into past investments that led to a severe decline in asset values.
These were among the findings of the newly declassified Royal Commission of Inquiry (RCI) report, which said the weaknesses that led to TH's financial problems could be addressed without fundamentally changing its existing structure.
It also recommended amendments to the Tabung Haji Act 1995 to strengthen governance and regulation, including setting specific criteria for board appointments and requiring board members to have expertise in relevant fields.
"Although TH faced a serious financial crisis in the 2017 financial year, prompting various parties to put forward studies and proposals to change its existing model, including splitting TH into separate entities, the commission believes the institution should be retained in its current form," it said.
The commission proposed several recommendations to address the issues, including preventing active politicians from being appointed as chairman or members of TH's board and the boards of its subsidiaries.
It also recommended specific criteria for individuals eligible for board appointments and the method of selecting board members.
The RCI further recommended specific provisions setting out the areas of expertise required of appointed board members and said the Prime Minister should appoint board members and the chief executive officer on the recommendation of an independent committee or advisory body.
In addition, it called for a greater separation of responsibilities, with the Religious Affairs Minister overseeing haj management and the Finance Minister managing financial matters, funds and investments.
The RCI also recommended forensic audits of past investments to determine which decisions resulted in the severe decline in TH's asset value.
Among the investments identified for forensic audits were TH Indo Plantations, Emrail, Wellspring Worldwide, Deru Semangat, Trurich Resources, Abraj, Putrajaya Perdana, Al-Rawda, Al-Fareeda Residential Fund, TH Plantations, TH Properties, Alam Maritim Resources/TH Marine, TH Hotel & Residences and FGV.
The Commission also called for firm and immediate action on every police report or complaint involving alleged misconduct at TH.
It said disciplinary proceedings should be streamlined and expedited to ensure they were effective, efficient, fair and transparent.
