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Muslim pilgrims' savings in TH treated like ‘grandfather’s money’
KUALA LUMPUR, July 30, 2026: The Tabung Haji (TH) management treated Muslim pilgrims’ savings as their “grandfather’s money”.
The TH Royal Commission of Inquiry (RCI) Report said up to 13 months’ bonus were paid out despite suffering billions of Ringgit in losses.
The RCI cited special bonus payment in 2014 that cost TH RM74 million!
All this occurred under the Umno-led Barisan Nasional Government.
No News Is Bad News reproduces below a news report on the the bonus payments that were made without complying with the prescribed regulations, and our previous post on the TH RCI Report that was declassified by the Madani Unity Government:
Up to 13 months’ bonus paid out despite financial concerns
RCI report cites special bonus payment in 2014 that cost Tabung Haji RM74 million.
The RCI report said the practice of awarding ‘excessively high’ bonuses to staff members should be discontinued, especially given TH’s financial difficulties.
PETALING JAYA: Tabung Haji employees received bonuses ranging from two to 13 months’ salary between 2010 and 2017, including a special bonus payout in 2014 that cost the institution RM74 million, according to the RCI report made public today.
The report said the practice of awarding “excessively high” bonuses to staff should be discontinued, especially given TH’s financial difficulties during the period.
It recommended that efforts be made to recover bonuses paid to those involved as the payments were made without complying with the prescribed regulations.
Under government guidelines, bonus payments exceeding two months’ salary could be considered if a large number of officers and employees had demonstrated outstanding performance.
The commission said the bonus approval process involved three levels – the TH board, the religious affairs minister, and the finance minister.
However, it noted that both ministers generally received bonus proposals that had already been recommended by TH management and the board.
The justification given for the bonuses was TH’s strong profits during those years, with the proposed payments calculated based on between 1.7% and 2.5% of annual profits.
However, the RCI said the high bonus payments were inappropriate, taking into account TH’s financial position between 2014 and 2017, when its assets were lower than its liabilities, as reported in its annual financial statements and acknowledged by the national audit department.
The commission also agreed with the legal opinion provided by law firm Md Tajuddin & Co that bonus payments made to the TH Properties board of directors breached provisions under the Companies Act 2016.
Malaysia
TH cases referred to MACC but no charges filed, RCI report reveals
The declassified RCI report reveals that multiple allegations of misconduct were referred to the authorities but did not result in criminal prosecutions, although several former senior executives were subjected to internal disciplinary action
Updated 1 hour ago · Published on 30 Jul 2026 8:15AM
RCI reveals Tabung Haji misconduct cases referred to MACC ended without criminal charges - July 30, 2026
by Alfian Z.M. Tahir
FOUR police reports and six matters referred to the Malaysian Anti-Corruption Commission (MACC) over alleged misconduct involving Lembaga Tabung Haji (TH) did not result in any court charges, according to the declassified Royal Commission of Inquiry (RCI) report.
The cases involved allegations of misrepresentation, concealment of information, corruption, abuse of power, forgery and manipulation of investment reports.
While no criminal proceedings followed, internal investigations into several matters resulted in disciplinary action against five former senior management personnel, including over issues linked to the sale of PT TH Indo Plantations (THIP).
The RCI noted that some initial decisions to dismiss those involved were later reduced to demotions following appeals.
All five individuals remained with TH at the time of the inquiry, with four holding senior positions in TH Hotel & Residence Sdn Bhd, TH Plantations Bhd and TH Properties Sdn Bhd.
The inquiry also raised concerns over the duration of disciplinary proceedings, which took between 10 and 19 months to complete.
It recommended that the process be streamlined and expedited to ensure disciplinary action was carried out in a manner that was “effective, efficient, fair and transparent”.
One of the cases involved a police report lodged in 2019 alleging that TH management had misrepresented information presented to the board in February 2018, which contributed to the declaration of a higher hibah payout for the financial year ended Dec 31, 2017.
The RCI found that TH had relied on realisable asset value (RAV), which was higher than the asset value reflected in its audited accounts, when determining its financial position before declaring the distribution.
Under the Tabung Haji Act 1995, TH’s assets must not be lower than its total liabilities before profits can be distributed.
According to the report, TH management had argued that the law did not provide a clear definition of “assets” and that it had the discretion to determine how asset values were calculated.
Another police report was lodged in November 2018 over TH’s sale of its 95% stake in TH Indo Plantations to PT Borneo Pacific, involving allegations of misrepresentation and concealment of information.
The RCI found that TH had transferred the shares before receiving full payment and had also advanced US$178.6 million which was supposed to be settled by PT Borneo Pacific.
The value of the transaction was later revised from US$910 million to US$810 million.
Four individuals initially faced dismissal over the THIP transaction but were later demoted following appeals.
They were former group chief financial officer Datuk Rozaida Omar, former senior general manager Rifina Md Ariff, former chief human resources officer Mohd Hisham Harun and former legal adviser Hazlina Mohd Khalid.
Rozaida had also initially faced dismissal over the 2017 hibah payout issue but was similarly demoted after an appeal.
The RCI also highlighted disciplinary action linked to Yayasan Tabung Haji’s RM22.12 million contribution, which was made without the required approval.
Rozaida and then-chief operating officer Datuk Adi Azuan Abdul Ghani received “severe warnings”, while Mohd Hisham was issued a warning and had his salary increment deferred. - July 30, 2026
Wednesday, 29 July 2026
TH RCI: Penalties of officers reduced, even ‘rewarded’ with promotion, RM1.4b loss reported as RM3.4b profit
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TH RCI: Penalties of officers reduced, even ‘rewarded’ with promotion, RM1.4b loss reported as RM3.4b profit
KUALA LUMPUR, July 29, 2026: The Tabung Haji (TH) Royal Commission of Inquiry (RCI) found that five errant senior officers had their penalties reduced despite the scale of the wrongdoing uncovered.
The five are believed to be still employed and one was even promoted!
The TH RCI, declassified by the Cabinet today, also uncovered “creative accounting” and political influence behind TH’s financial woes.
It also found TH concealed the true state of its finances for years, like reporting a RM3.4 billion profit for 2017 when it should have recorded a RM1.4 billion net loss under proper accounting standards – a shortfall of nearly RM4.8 billion.
All these occurred during the Umno-led Barisan Nasional (BN) era of governance.
No News Is Bad News reproduces below two news reports on the TH RCI Report:
Penalties against 5 senior TH officers watered down, says RCI report
Panel says authorities took too long, and often too little action, relative to the scale of the wrongdoing uncovered.
The RCI report said five senior officers charged over four clusters of misconduct were still employed at TH or its subsidiaries as of 2022.
PETALING JAYA: The royal commission of inquiry into Tabung Haji (TH) found that senior officers implicated in multiple misconduct cases had their penalties repeatedly watered down on appeal, with all five involved still employed at TH or its subsidiaries as of 2022.
The RCI report, submitted to the Yang di-Pertuan Agong on Aug 30, 2022 and declassified today, said the pattern extended across police reports, internal disciplinary proceedings, referrals to the Malaysian Anti-Corruption Commission (MACC), and ongoing court and arbitration cases – with authorities and TH management alike taking too long, and often too little action, relative to the scale of the wrongdoing uncovered.
Dismissals reduced to demotions
The report said TH’s disciplinary committee charged five senior officers – group chief financial officer Rozaida Omar, chief operating officer Adi Azuan Abdul Ghani, senior general manager Rifina Ariff, chief human resources officer Hisham Harun, and legal adviser Hazlina Khalid – over four clusters of misconduct.
These included the sale of TH’s stake in PT TH Indo Plantations (THIP), a RM22.12 million Yayasan Tabung Haji contribution made without required ministerial approval, the disputed 2017 hibah declaration, and submission of false claims to TH’s payment unit.
It said while TH’s disciplinary committee initially imposed dismissal for the THIP and hibah cases and demotion for the Yayasan Tabung Haji case, an appeals committee later reduced nearly every penalty.
Only one demotion, over the false claims case, was upheld on appeal.
The report noted that all five officers remained with TH as of the report’s conclusion, several having moved into senior positions at subsidiaries, including TH Hotel & Residence, TH Plantations, and TH Properties.
Process took up to 19 months
The RCI also criticised the pace of TH’s internal disciplinary process, noting that one case took 19 months from an officer’s written response to a final decision, another took 15 months, and a third took 10 months.
It recommended the process be streamlined and expedited to be seen as effective, efficient, fair and transparent.
Separately, TH management filed four police reports between November 2018 and January 2019, according to the report.
Two remain unresolved years later – one over the 2012 sale of TH’s 95% stake in THIP to Indonesia’s PT Borneo Pacific for about US$910 million, alleging misrepresentation and concealment; and another over Trurich Resources’ US$58 million purchase of palm oil plantations in Kalimantan between 2008 and 2009, alleging manipulated land-suitability reports.
Both investigations have been held up pending cooperation from Indonesian authorities.
A third report, over alleged misuse of Yayasan Tabung Haji funds, has been referred to the Attorney-General’s Chambers.
A fourth, over the disputed 2017 hibah declaration, has also been completed by police and referred to the AG’s Chambers for a decision on prosecution.
The commission said authorities must act firmly and promptly on every police report or complaint lodged.
It said six matters have been referred to MACC and remain under investigation, including alleged corruption in TH Plantation’s purchase of Ladang Weida Bhd, alleged abuse of power in the leasing of two restaurants at TH’s headquarters and KL Sentral, alleged corruption by a former chief operating officer over renovation works, alleged document falsification involving rubber seedling supplies in Sandakan, and alleged misconduct at two TH Properties subsidiaries.
The Cabinet approved the declassification of the RCI report earlier today.
The RCI was established in 2021 to investigate TH’s management, operations and asset-related issues between 2014 and 2020, following concerns over its governance and financial position.
RCI uncovers ‘creative accounting’, political influence behind TH’s financial woes
Report traces the roots of the fund’s financial problems to political interference in board appointments, and unsustainable hibah payouts, among others.
The RCI report said that although Tabung Haji’s existing structure should be maintained, major reforms are needed in its management and operations to restore public confidence in the fund.
PETALING JAYA: The royal commission of inquiry has found that Tabung Haji (TH) concealed the true state of its finances for years, reporting a RM3.4 billion profit for 2017 when it should have recorded a RM1.4 billion net loss under proper accounting standards – a shortfall of nearly RM4.8 billion.
The six-member commission, chaired by former chief justice Raus Sharif, said the discrepancy stemmed from changes in impairment policies, unrecorded losses from troubled investments, and the use of “creative accounting” to justify annual profit distributions, or hibah, to depositors.
In its 252-page report submitted to the Yang di-Pertuan Agong on Aug 30, 2022, and declassified today, the commission traced the roots of TH’s financial problems to political interference in board appointments, unsustainable hibah payouts, and the national audit department softening its findings over concerns about depositor confidence.
Overall, the RCI concluded that a combination of excessive hibah commitments, questionable accounting practices, weak oversight, ambitious investment strategies and rising subsidy obligations placed significant financial pressure on TH.
High hibah payouts exceeded financial capacity, depleted reserves
The RCI said several TH chairmen and board members appointed between 2014 and 2018 were active politicians, and found that decisions on hibah rates, haj fees and financial assistance during that period were influenced by political considerations.
It said the minister overseeing TH also had unchecked authority to remove board members without cause – a power that was used to end the tenure of a CEO and chairman before the expiry of their terms.
The commission found that TH’s decision to maintain high hibah payments between 2014 and 2017 exceeded its financial capacity and depleted its reserves.
The attractive returns encouraged depositors to maintain large sums of money with TH, creating pressure on the institution to continue providing high payouts.
This exposed TH to the risk of significant withdrawals if hibah rates were reduced, as seen in 2019 when deposits fell from about RM73 billion to RM69 billion following the announcement of a 1.25% hibah rate.
To sustain high hibah payments, TH took on greater investment risks, with its portfolio becoming increasingly exposed to equities and market volatility.
‘Creative accounting’ masked TH’s financial losses
The RCI found that TH engaged in “creative accounting” by using Realisable Asset Value (RAV), instead of asset values reported in audited financial statements, to determine its ability to declare hibah payments.
This resulted in higher asset valuations and allowed larger distributions than TH’s actual financial position could support.
The commission also criticised the national audit department for failing to adopt a firmer stance in auditing TH’s financial statements between 2014 and 2017.
It noted that while the department issued a clean audit opinion for 2017 despite highlighting an “Emphasis of Matter”, it later admitted in a written response to the prime minister that it had avoided issuing a qualified opinion partly due to concerns over its potential impact on depositor sentiment.
The RCI said this compromised the department’s independence, and that a qualified opinion should have been issued.
Risky investments and growing financial pressures
Another contributing factor was TH’s expanded vision of becoming a “pillar of the ummah economy”, which led the institution beyond its original purpose of helping Malaysians save for and perform the haj pilgrimage.
The RCI found that TH ventured heavily into areas such as property and plantations despite lacking sufficient expertise, resulting in significant losses, particularly among its subsidiaries.
It also highlighted the growing burden of Haj Financial Assistance (HAFIS), which subsidises pilgrimage costs. The cost of performing the haj increased from RM15,553 in 2013 to RM25,540 in 2022, while TH’s subsidy burden rose from RM106 million in 2014 to RM300 million in 2019.
Although TH increased haj payments in 2022 through a two-tier system for B40 and non-B40 pilgrims, the commission warned that HAFIS costs could reach nearly RM400 million annually and potentially RM742.47 million by 2030.
As the subsidy is funded through TH’s investment profits, rising HAFIS costs could reduce funds available for hibah payments and affect depositor confidence.
Sweeping reforms needed to restore confidence
The RCI report said TH’s existing structure should be maintained, but warned that major reforms were needed in its management and operations to restore public confidence in the fund.
It recommended amendments to the Tabung Haji Act 1995 to establish clear criteria for board appointments and prevent active politicians from serving on the board.
It also proposed separating ministerial oversight, with the religious affairs minister responsible for haj operations while the finance minister oversees funds and investments.
Other recommendations include removing Bank Negara Malaysia’s regulatory role over TH, or limiting it strictly to reserve and liquidity matters, replacing the national audit department with a private audit firm for TH’s financial statements, and ensuring hibah payments are based solely on audited financial statements rather than internal valuations.
The RCI also called for forensic audits into 14 problematic investments, including TH Indo Plantations, Trurich Resources, and FGV Bhd, while proposing an increase in the minimum haj registration deposit from RM1,300 to RM12,980 to reduce the waiting period from 130 years to 33 years.
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