KUALA LUMPUR: Ensuring Lembaga Tabung Haji (TH) remains free from political interference is an important part of its recovery efforts, after more than 75% of the Royal Commission of Inquiry's (RCI) recommendations on its management and operations were implemented, according to analysts.
Most analysts believe the key lesson from the crisis, which cast a shadow over TH's long record of managing savings and matters related to the fifth pillar of Islam, the haj pilgrimage, was the damaging impact of political interference and political appointments on corporate governance and professionalism.
National Council of Professors Fellow Prof Dr Azmi Hassan said the move was essential to restoring full confidence among depositors and the country's Muslim community in TH and its role.
"There is no denying the political interference in TH. At present, it is difficult to separate the institution from political interests, with almost every decision being linked to politics, including yesterday's tabling of the RCI findings in the Dewan Rakyat.
"Moving forward, the government must demonstrate that TH is managed independently of political pressure, with professionals who have no links to political parties appointed to lead the organisation," the Nusantara Academy for Strategic Research (NASR) senior fellow told Bernama on Wednesday (Aug 12).
Meanwhile, Universiti Putra Malaysia (UPM) senior lecturer at the Faculty of Human Ecology, Dr Mohd Amim Othman said TH should draw lessons from the management of the Employees Provident Fund (EPF) and Permodalan Nasional Berhad (PNB), which are free from political influence.
"Malaysia has no shortage of qualified people (professionals) who can lead TH. The problem is that politicians are reluctant to give up their control over the institution.
"To achieve this goal (of keeping TH free from political influence), the RCI's recommendations should be implemented, including changes to the powers of the minister and board of directors and stronger regulatory oversight," he said.
Mohd Amim said the post-crisis period required TH to be more proactive and adopt fresh approaches to regain public confidence and encourage greater participation and savings, particularly among the younger generation.
"A decline in contributions from existing members following the TH RCI issue could affect investment funds. We need to attract younger people and make TH membership more attractive by offering access to various products, including TH Property," he said.
Universiti Malaysia Sabah (UMS) Centre for Economic and Policy Development director Dr Saizal Pinjaman said political interference could lead to investment risks being disregarded, including in situations where information is incomplete.
He cited the TH RCI report on the Al-Rawda investment in Saudi Arabia, the institution's largest loss among its list of troubled investments, which proceeded despite the investment due diligence process not being completed.
"This shows why it is important to give TH's management board the freedom to make objective and professional decisions that take into account all potential investment risks.
"But such independence must also be matched by accountability and oversight," he said during his appearance on Bernama TV's Fokus 15 programme Wednesday, which discussed "RCI TH: Memperkukuh Tadbir Urus, Memulih Keyakinan" (TH RCI: Strengthening Governance, Restoring Confidence).
Security and political analyst Dr Noor Nirwandy Mat Noordin said TH should move quickly to restore its standing as an institution that represents the civilization, heritage and pride of Muslims in Malaysia following the crisis.
"We must ensure that TH is viewed as an institution that works in the interests of society and Malaysians, rather than other parties. One of the most important reforms for TH would also be greater transparency in its management," he said.
The senior lecturer at Universiti Teknologi MARA (UiTM) Shah Alam's Centre for Media and Information Warfare Studies said TH could engage external experts to provide insights into incentives, investment and economic issues to ensure it remains competitive. - Bernama
