In the saga on the RCI Report on Tabung Haji, the then Auditor General, defended her decision in 2017 to issue Lembaga Tabung Haji’s financial statements a clean audit certificate with two emphasis of matter (EOM) paragraphs, rather than a qualified audit opinion.
She, reportedly said, if one understands the accounting aspect, issuing an EOM means that the financial statements require attention and the EOMs, issued in July 2017, were intended to draw attention to two material matters identified during the audit.
The RCI raised concerns over the audit of Tabung Haji’s 2017 accounts, saying Tabung Haji should not have received a clean opinion and that the issues should have been treated as serious non-compliance.
The former Auditor General was quoted in the report, to have said a qualified opinion was initially proposed over Tabung Haji’s impairment policy and RM227.81 million in investment impairment, but an unqualified opinion with EOM was eventually issued after discussions with then-prime minister Tun Dr Mahathir Mohamad on July 4, 2018, partly due to concerns over the impact on depositors’ confidence.
The RCI comprised of the following members,
Tun Md Raus Sharif – Chairman (Former Chief Justice of Malaysia)
Tan Sri Samsudin Osman – Member (Former Chief Secretary to the Government)
Tan Sri Abdul Rashid Hussain – Member (RHB Group founder)
Tan Sri Dr Mohd Munir Abdul Majid – Member (Former chairman of Bank Muamalat Malaysia Bhd)
Prof Dr Asmadi Mohamed Naim – Member (Vice-Chancellor of Sultan Abdul Halim Mu’adzam Shah International Islamic University - UniSHAMS)
Norsyahrin Hamidon – Member (Chartered accountant)
Amongst the prominent people on board the RCI, a former Chief Secretary to the Government, one is a Chartered Accountant who is also the President of the Malay Chamber of Commerce and another, the Founding Chairman of the Securities Commission who was also the first CEO & Executive Chairman of CIMB and former Chairman of Malaysia Airlines.
It is presumed that the former Chief Secretary would be aware of the workings of the office of the Auditor General while the other 2 prominent luminaries with their extensive background would have more than a basic understanding of the matter that they are inquiring and to agree with the views for them to concur with the statement that Tabung Haji should not have received a clean opinion and that the issues should have been treated as serious non-compliance.
Todate, the Malaysian Institute of Accountants (MIA) has not issued a direct, formal standalone statement or inquiry response regarding the declassified Tabung Haji Royal Commission of Inquiry (RCI) report.
Probably it is time for MIA, being the statutory body that sets ethical, auditing, and accounting standards for professionals and who operates under the purview of the Ministry of Finance via the Accountant General's Department, to speak up and give a definite to this issue - emphasis of matter (EOM) rather than a qualified audit opinion.
Silence is not an option for MIA.
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