KUALA LUMPUR: Accounting standards and penalties for financial misreporting will be included in the proposed amendments to the Tabung Haji Act 1995 (Act 535) so that past issues will not recur, says Dr Zulkifli Hasan.
The Minister in the Prime Minister’s Department (Religious Affairs) said the Royal Commission of Inquiry (RCI) on Lembaga Tabung Haji (TH) also recommended prohibiting active politicians from being appointed as chairman or members of the Tabung Haji Board.
A task force comprising the Bank Negara governor, the Securities Commission’s (SC) chairman and chaired by TH chairman has recommended for a framework to be in place to allow for the SC to monitor and regulate the investment and management of TH’s funds, while haj matters will remain under Zulkifli’s ministry.
“To ensure issues raised by the RCI do not recur, clear provisions will be outlined in the proposed amendments including accounting standards and penalties for misreporting of financial statements,” he said.
Zulkifli said the RCI was of the view that comprehensive reforms to the Tabung Haji Act were necessary, including specific eligibility criteria and a selection process for board members based on relevant expertise.
The RCI also recommended discontinuing the practice of awarding excessively high bonuses to staff, he added.
“TH has adopted a reasonable bonus structure based on the institution’s overall financial performance and the achievement of key performance indicators (KPIs) by TH and its employees,” he said.
“The excessive bonuses previously awarded to members of the TH Properties board without complying with the applicable rules have been recovered and fully repaid, in accordance with the RCI’s recommendation.”
Zulkifli said His Majesty Sultan Ibrahim, King of Malaysia, had decreed that investigations into the findings of the RCI be conducted comprehensively, transparently, without compromise and with no stone left unturned.
“His Majesty’s concern underscores the importance of safeguarding the trust and confidence of Muslims in the country’s haj management and Islamic financial institutions, in line with the government’s commitment,” he said.
The Cabinet, he said, had unanimously reviewed the RCI report on July 29 and decided to make it public by tabling and debating the report during the special parliamentary sitting.
