LETTER | The CSO Platform for Reform welcomes the government’s decision to convene a special sitting of Parliament to allow elected representatives to deliberate on the RCI’s serious findings.

However, we condemn the decision by a large bloc of opposition MPs to stage a walk-out, which undermined Parliament’s vital role as a forum for scrutiny, accountability and democratic oversight, and failed to fulfil the opposition’s responsibility to provide an effective check and balance on the government.

The RCI report and the subsequent parliamentary debates have brought to light grave concerns surrounding the governance and financial management of Tabung Haji, including a massive asset-liability deficit, the use of creative accounting practices to facilitate improper profit distributions, and high-risk investments that resulted in losses amounting to billions of ringgit.

Among these investments, seven reportedly suffered total losses of 100 percent, contributing to nearly RM13 billion in rescue and impairment costs, which were ultimately absorbed largely through a government bailout involving Urusharta Jamaah Sdn Bhd.

These findings raise serious questions about governance, oversight, investment decision-making and accountability within Tabung Haji. They cannot simply be dismissed as historical or isolated failures.

The CSO Platform for Reform has consistently called for all appointments to the boards and senior leadership of GLCs and GLICs to be made through a transparent, merit-based and independent process, free from political influence, patronage or partisan considerations.

At the same time, stronger safeguards must be put in place to ensure that GLCs and GLICs are subject to rigorous, independent and timely audits, with audit findings and appropriate follow-up actions made publicly accountable.

There have also been calls to question the participation of representatives who raise concerns about Tabung Haji through the mass media. The CSO Platform strongly disagrees with such sentiments.

While Tabung Haji is a government-owned Islamic financial institution established to facilitate the management of funds for pilgrims, its accountability extends beyond its depositors and beneficiaries to all Malaysians. Its financial and institutional integrity is a matter of public interest, particularly where significant public resources have ultimately been used to address losses arising from its management and investment decisions.

Following the financial losses suffered by Tabung Haji, public funds were utilised by the Government to support the institution and absorb a substantial portion of the resulting costs.

The interests of all Malaysians are therefore directly implicated. Public accountability, transparency and the right to scrutinise the management of public institutions should not be limited to any particular group, especially where public funds have been deployed to safeguard an institution of national significance.

Independent, transparent probe needed

With the issues surrounding Tabung Haji now firmly in the public domain, the government must seize this opportunity to undertake a comprehensive, independent and transparent investigation into the root causes of the failures identified by the RCI and address them without further delay.

The challenges facing Tabung Haji are fundamentally institutional in nature. They must not be reduced to a political weapon against past administrations, nor exploited merely for electoral purposes. Equally, accountability must not be selective or politically convenient.

The objective must be to establish what went wrong, why it happened, who was responsible, and what institutional weaknesses allowed such failures to occur.

The CSO Platform therefore calls for firm and appropriate action to be taken against any parties found responsible for mismanagement, negligence or wrongdoing, following a comprehensive and independent investigation and in accordance with due process.

Where the investigation establishes responsibility, the names of the individuals involved, the nature of their roles and the findings against them must be disclosed to the public.

At the same time, stronger institutional safeguards, independent oversight mechanisms and robust governance measures must be implemented to protect the interests of Tabung Haji’s beneficiaries and depositors and to ensure that such failures do not recur.

More fundamentally, the lessons from Tabung Haji must extend beyond Tabung Haji itself.

GLCs and GLICs manage assets and resources that carry significant public interest. They must therefore be governed as institutions of public trust - not as political property, patronage networks or tokens to be distributed to political allies.

Those entrusted with managing public institutions and funds must be held to the highest standards of accountability, and the public must be given sufficient information to assess whether those responsible have been appropriately held to account.

Public institutions belong to the public. Their governance must therefore serve the public interest - not political interests.

The views expressed here are those of the author/contributor and do not necessarily represent the views of Malaysiakini.