Tabung Haji RCI snubbed my testimony, former auditor-general claims

A former auditor-general has claimed that the royal commission of inquiry into Tabung Haji failed to secure her testimony.

Madinah Mohamad, who held the post from 2017 to 2019, said she was present at the Islamic Development Department (Jakim) during the proceedings but was never called to give a statement.

“I went there on the scheduled day and time at Jakim. I waited for more than 30 minutes, but was disappointed that I was ultimately not called,” Berita Harian quoted her as saying.

Madinah (above) said she was therefore denied her right to be heard and an opportunity to respond to the RCI’s report, which criticised her office for a lack of firmness during certain periods.

During a special parliamentary sitting on Aug 11 to debate the report, Muar MP Syed Saddiq Syed Abdul Rahman questioned why Madinah’s testimony was not included, given that she was the auditor-general at the time.

Domestic Trade and Cost of Living Minister Armizan Ali also said the report warrants scrutiny of the integrity of audit reports presented to the cabinet, Parliament, and the public.

According to the New Straits Times, Armizan said the government must take a clear position on the audit issues raised by the RCI to restore confidence in the auditor-general’s reports.

READ MORE: Tabung Haji given time to recover before RCI report released, says minister

‘National interest’

Madinah reportedly said every decision she made on Tabung Haji in 2017 was guided by the national interest.

This, she said, was why she signed off on a clean audit opinion that year, while attaching two Emphasis of Matter (EOM).

An EOM is neither a qualified nor an adverse finding. Rather, it is included in a clean audit opinion to draw attention to a specific matter already disclosed in the financial statements.

In this case, Tabung Haji’s 2017 financial statements passed the audit, but two specific concerns were flagged for attention.

“If one understands accounting principles, issuing an EOM means that the financial statement requires attention.

“At the time, I exercised professional judgment to issue the EOM to draw attention to two material matters identified during the audit, and I performed my duties to the best of my ability,” Madinah said.

Decision based on audit standards

Madinah, citing the Audit Act 1957, said the auditor-general is required to conduct audits independently.

She stressed that her decision to flag the two matters through EOMs rather than issue a qualified opinion was based on audit evidence and International Standards on Auditing (ISA).

“If a qualified certificate had been issued without meeting standard requirements, it would not only compromise the integrity of the audit process but could also severely impact stakeholder confidence,” she said.

Madinah also argued that her department’s audit should not be measured against a separate review by PricewaterhouseCoopers (PwC), as they had different objectives, scopes, and mandates.

The auditor-general’s audit was a statutory exercise governed by the Audit Act, ISA, and international public-sector auditing standards, while PwC’s was a special assessment conducted under terms of reference set by its appointing party, she said.

“On the issue of impairment, for example, the department audited based on the Malaysian Financial Reporting Standards (MFRS) 139 in force at the time, while PwC considered the Financial Reporting Standards Implementation Committee (FRSIC) Consensus 14, which, according to the Malaysian Institute of Accountants, is not a mandatory standard,” she explained.

The RCI report on Tabung Haji’s management and operations from 2014 to 2020 exposed widespread governance failures, particularly involving critical financial risks, political interference, and improper transactions.

BN: Don't rush to judge

In a statement, BN secretary-general Zambry Abdul Kadir said the coalition had nothing to hide from the public, particularly Tabung Haji’s 10 million depositors.

He urged all parties to avoid reckless allegations, “political judgement” before the legal process is completed, and narratives that could undermine depositors’ confidence without a responsible basis.

“The RCI is a mechanism established under the country’s laws to investigate matters of public interest. The report should be examined objectively, based on facts and evidence, rather than being used as a tool for political condemnation,” he said.

Zambry said the Aug 11 parliamentary debate also confirmed that the RCI’s scope covered only the 2014-2020 period.

This, he said, necessitated a comprehensive review of Tabung Haji’s governance history, including developments and decisions after 2020, and the role played by Urusharta Jemaah Sdn Bhd since its establishment.

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“BN wishes to remind that (coalition chairperson) Ahmad Zahid Hamidi had, from the outset, expressed support for the RCI report to be made public in Parliament and debated in a special sitting.

“He had also proposed that the review be expanded to ensure truly comprehensive transparency,” Zambry said.

“This demonstrates that BN has never taken a position to close off public scrutiny of issues concerning Tabung Haji,” he added.

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