I was just trying to lower haj costs, Jamil Khir says after being charged

Former religious affairs minister Jamil Khir Baharom said Tabung Haji’s long-term hotel leasing strategy during his tenure aimed to lock in better accommodation rates and reduce the cost of haj.

“At the time, I took the approach of locking in hotels for a long-term period so that we could secure better rates, or lock in the best prices, to reduce the cost of performing the haj,” he told reporters at the Kuala Lumpur Court Complex after claiming trial to three charges of dishonestly causing Tabung Haji to dispose of RM860.3 million of its funds to a Saudi property management firm.

The charges followed the release of the Tabung Haji royal commission of inquiry report, which listed the dealings with Al-Rawda Investment for Real Estate Development and Projects Management Co Ltd as one of the fund's troubled investments.

Jamil said accommodation was a core component of Tabung Haji’s services to haj pilgrims, as he defended the rationale behind securing hotels over extended periods.

He also described the case as the culmination of a long process stemming from issues raised over Tabung Haji since 2018.

“Today, in the end, I have been charged in relation to the rental of hotels by Tabung Haji.

“I am also grateful that this matter has received serious attention because one of the core aspects of serving haj pilgrims is accommodation,” he said.

Jamil ready to clear name

He added that he would contest the allegations in court.

“I will defend myself in court. So, we will wait and see what developments come after this,” he said.

Asked whether the prosecution would allow him to clear his name, Jamil said the court was the best forum for him to do so.

“Yes, to clear my name in court. This is the best place to seek justice.

“I believe, God willing, that the court will deliver the best and fairest outcome,” he said.

Asked whether it was now a case of “lawan tetap lawan” (fight on regardless), Jamil laughed and said, “Once you are in court, of course you will respond to the arguments and so on.”

Deal with Al-Rawda

According to the RCI report, Tabung Haji paid Al-Rawda for long-term leases on four hotels in Mecca and Madinah with Al-Rawda, appointing the company as operator under a projected 2.49 million Saudi riyal lease agreement.

In March 2019, Al-Rawda defaulted on rental payments, accumulating 560.7 million Saudi riyals in arrears by December 2021.

Consequently, Tabung Haji enforced promissory notes issued by Al-Rawda in Saudi courts, and obtained orders for asset freezes and initiated the liquidation of 20 properties owned by the property firm’s owner.

Later settlement negotiations failed after Al-Rawda proposed a reduced payout and initiated arbitration, claiming syariah non-compliance.

The RCI, in its report, recommended a full forensic audit of the dealings.

Jamil was previously detained by the MACC for seven days from Sept 2 to 8 to assist investigations into the leasing of a Tabung Haji-linked hotel in Saudi Arabia, one of the matters highlighted in the RCI report.

He is the fourth person to be charged following the publication of the RCI report.

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