THE cabinet has agreed to form a royal commission of inquiry (RCI) to investigate Lembaga Tabung Haji (TH) over issues raised by its auditors, Deputy Prime Minister Ismail Sabri Yaakob said today.

The RCI will look at issues raised in audits from 2014 to 2018 and to determine if there were “cover-ups”.

The commission will be given three months to complete its work.

“We will also determine if there were cover-ups with regard to the information on the highlighted issues, including the act of releasing unverified statements that could cause confusion,” Ismail said in a statement.

The matters to be investigated, however, will not include the pilgrimage fund’s recovery and restructuring plan that is being implemented.

“The RCI will propose actions that should be taken against any parties that were involved directly or indirectly if they are found guilty under the law,” Ismail said.

He said the Prime Minister’s Department will identify commission members, who will include experts in syariah, Islamic banking and investment, and law.

“An announcement on the RCI will be made soon. The formation of RCI is important to restore public confidence in TH,” he added.

Among TH’s problems raised in audit reports is the payments of “hibah” or dividends at levels higher than the fund’s assets allowed, a violation of the Tabung Haji Act 1995.

During the Pakatan Harapan (PH) administration from 2018 to early 2020, various allegations of financial mismanagement were also made against the fund while it was under the Barisan Nasional administration previously.

The current government, which ousted PH last year, has, in turn, accused PH of selling the fund’s hotel assets, which then minister in charge Mujahid Yusof Rawa has denied. He said the assets were instead transferred to a special vehicle under the Finance Ministry. – July 14, 2021.