KUALA LUMPUR: The Prime Minister has backed a proposal by Lembaga Tabung Haji (TH) to place its investment operations under regulatory oversight of the Securities Commission Malaysia (SC) or Bank Negara.
Datuk Seri Anwar Ibrahim, who is also Finance Minister, said the move would ensure that TH operations are subject to tighter regulation and to prevent power abuse and other governance-related issues in the future.
He said the initiative by TH’s new management, led by its chairman Tan Sri Abdul Rashid Hussain, is a positive step towards strengthening governance and accountability at the pilgrimage fund management institution.
“I have been briefed by them and support the measures, including several proposed amendments to the Tabung Haji Act 1995,” he told reporters after performing Friday prayers at Masjid Bukit Indah in Ampang Jaya yesterday.
Anwar said the move would ensure tighter oversight of TH’s management by either the SC or Bank Negara, and prevent governance weaknesses from going unchecked.
On Thursday, Abdul Rashid said TH is refining a new regulatory framework to place its investment operations under statutory oversight of the SC.
He said the decision followed nearly six months of detailed deliberations by a joint task force established to examine the proposed regulatory framework.
The task force also comprises the SC chairman and Bank Negara Governor, with the aim of ensuring TH’s investment management complies with Malaysia’s capital market regulatory standards.
On another matter, the Prime Minister said he had asked the Rural and Regional Development and Finance Ministries to resolve issues concerning allocations, including delayed payments to contractors, through discussions.
“Let us discuss this amicably. I have asked both ministries to resolve this properly,” he said.
Treasury secretary-general Tan Sri Johan Mahmood Merican had said there were no restrictions on the ministry’s allocations for rural road projects, with the full allocation for the projects having already been channelled.
He explained that constraints in the payment process to contractors are due to the current year’s allocation having been almost fully utilised.
The issue arose following a statement by Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi regarding problems faced by contractors following delays in payments for projects under his ministry.
