MACC detains ex-Tabung Haji chairperson, former Treasury sec-gen over RCI findings

MACC has detained a former Tabung Haji chairperson and a former Treasury secretary-general to assist in investigations following issues raised in the Tabung Haji royal commission of inquiry report.

The two men in their 60s were detained at about 4pm today when they arrived at the MACC headquarters in Putrajaya, and are expected to be brought before the Putrajaya Magistrates’ Court tomorrow for a remand application.

MACC chief commissioner Abd Halim Aman confirmed the arrests.

The RCI report, published on July 29, exposed Tabung Haji’s widespread governance failures, particularly in matters involving critical financial risks, political interference, and improper transactions.

The commission found that high bonus payments to Tabung Haji employees and to the Tabung Haji Properties board of directors did not comply with regulations.

According to the report, among others, Tabung Haji paid RM367.7 million in bonuses between 2010 and 2017, which the commission described as “extremely high”.

The RCI found that broad provisions also allowed for the appointment of a chairperson and several board members from among politicians between 2014 and 2018, and that their involvement in Tabung Haji management caused public unease due to political conflict.

This then allowed certain parties to use Tabung Haji’s decisions as material for criticism, damaging the institution’s credibility.

Several decisions, including profit distribution payments (hibah), the setting of pilgrimage fees, and the Haj Financial Assistance scheme, were influenced by political considerations.

In addition, the Tabung Haji Act gives the religious affairs minister the power to terminate any board member's appointment at any time without providing a reason.

READ MORE: 'Sakau' or not? Five key takeaways from Tabung Haji RCI

The RCI report's findings also revealed that the Islamic financial institution faced a critical financial crisis in 2017, with an asset and liability deficit gap dating back to 2014.

Following the RCI report’s release, the cabinet ordered investigations arising from its findings to resume immediately.

The MACC subsequently formed a special task force to examine possible corruption, abuse of power, document falsification, and money laundering offences, leading to several arrests and remand applications.

Police have also opened five investigation papers and, as of Aug 21, recorded statements from 127 people over Tabung Haji-related cases, including matters raised by the RCI.

Former auditor-general retorts

Yesterday, former auditor-general Madinah Mohamad pushed back against the RCI’s criticism of the National Audit Department, maintaining that its audit of the pilgrimage fund followed the required standards and mandate.

The RCI report had chastised the department for not conducting stricter audits of Tabung Haji’s financial statements between 2014 and 2017.

Madinah, who served as auditor-general from 2017 to 2019, also said she and her team found “no evidence of theft or misappropriation” during their audit of the pilgrimage fund, Free Malaysia Today reported.

“If my team and I had found such evidence, I would have raised it and referred the matter to the relevant authorities.

“My mandate was very clear,” she reportedly said today as a speaker at a National Musyawarah Forum on Tabung Haji in Kuala Lumpur.

Among its findings, the commission said the fund should have recorded a net loss of RM1.4 billion in 2017 if the applicable Malaysian Financial Reporting Standards had been fully applied.

Instead, it reported a RM3.4 billion profit for the year - a difference of nearly RM4.8 billion.

Madinah, however, defended the department against suggestions that the RM4.8 billion discrepancy showed that its audit had failed.

She said the department’s audit and a subsequent PricewaterhouseCoopers (PwC) review had different purposes, terms of reference, and methodologies, making a direct comparison akin to comparing “apples and oranges”.

PAC proceedings

Earlier today, the Public Accounts Committee (PAC) said it will launch proceedings to scrutinise Tabung Haji’s weaknesses in the governance, finances and investments.

Stressing that it is the PAC’s duty and responsibility to do so, committee chairperson and Masjid Tanah MP Mas Ermieyati Samsudin noted that more questions have surfaced after the release of the RCI report, and its subsequent Dewan Rakyat debate on Aug 11.

In a statement today, she said that the PAC, after it reviewed the report, regarded the RCI’s findings as “extremely serious”, warning that they could erode Muslims’ confidence in Tabung Haji if left inadequately addressed.

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