Tabung Haji has denied allegations of conflict of interest over the controversial purchase of land from the debt-ridden 1Malaysia Development Berhad (1MDB).

The fund's chairperson Abdul Azeez Rahim said its chief executive officer (CEO) Ismee Ismail had abstained from meetings and making decisions regarding the transaction as he is one of 1MDB's board members.

“Ismee abstained from all discussion and he was not informed at all,” he said at a press conference today.

Other than Ismee, his deputy Johan Abdullah and panel investment member Samad Alias are also linked to 1MDB or its subsidiaries.

According to Azeez, Johan is the non-executive chairperson of Edra, a subsidiary of 1MDB, and was not involved in any of the company's decision-making concerning 1MDB’s real estate.

“And Samad (Alias) is only an independent adviser to 1MDB. He did not have the capacity to make decisions like a board member does,” he said.

Tabung Haji’s decision to purchase part of 1MDB’s Tun Razak Exchange (TRX) courted controversies as both government and opposition leaders are questioning the usage of pilgrimage funds to save a company with billions in debts.

Azeez vehemently denied this, insisting that it was not a bailout as Tabung Haji use investments in various fields to make profits for the fund and subsidise depositors.

'Don't listen to rumours'

He begged the depositors not to believe the rumours and hearsay from anyone regarding the purchase.

“I’m telling the pakciks and makciks, all the deposits from the depositors even if it is RM1, (your funds) are guaranteed by the government.

“We did not use the money for your pilgrimage to do anything that we wanted for ourselves,” he said.

Azeez also said that the body is spending about RM120 million to subsidise the pilgrimage this year.

This is because the real cost for pilgrimage for this year is RM17,270 per person, while Tabung Haji only charged RM9,980 since 2009 and subsidised the rest of the costs.

“If we are not involved in these investments, how can we do that?” he asked.

Perlis mufti Mohd Asri Zainul Abidin today in a scathing blog posting called for the three Tabung Haji office bearers to be hauled to court over revelations that they held posts in 1MDB.

"For those who are involved, it is not enough for them to resign, but instead they should be brought to court of justice," said the vocal mufti on his Facebook .