End political appointments in GLCs and statutory bodies, says C4 after Tabung Haji RCI

KUALA LUMPUR July 31 — The Center to Combat Corruption and Cronyism (C4 Center) has called on the government to end political appointments across all federal statutory bodies, government-linked investment companies (GLICs) and government-linked companies (GLCs), saying the Tabung Haji Royal Commission of Inquiry (RCI) exposed the dangers of political interference in public institutions.

The call follows the government's declassification of the RCI report on July 29, which found that political considerations contributed to governance failures and financial mismanagement at Lembaga Tabung Haji (LTH) between 2014 and 2020.

Among its key recommendations, the RCI proposed amending the Tabung Haji Act 1995 to expressly prohibit active politicians from serving as chairperson or board members of LTH and its subsidiaries.

C4 Center said the recommendation should not be limited to Tabung Haji but extended to all statutory bodies, GLICs and GLCs to strengthen governance and reduce corruption risks.

The group said the RCI found that Tabung Haji had concealed its actual financial position, reporting a RM3.4 billion profit in 2017 despite recording a net loss of RM1.4 billion. It also found that hibah payments were made between 2014 and 2017 by drawing down reserves despite mounting losses, with the commission attributing the decision largely to political pressure ahead of the general election.

C4 Center said the findings demonstrated how political interests could override sound financial management and place institutions entrusted with billions of ringgit in public funds at risk.

Political reforms needed beyond Tabung Haji

The group also referred to past allegations involving former Tabung Haji chairman Datuk Seri Abdul Azeez Abdul Rahim, including warnings from Bank Negara Malaysia over the fund's financial position and police reports lodged in 2018 over the alleged misuse of RM22 million from Yayasan Tabung Haji for political activities.

C4 Center said political appointments have long been criticised as a form of patronage that creates conflicts of interest, weakens institutional independence and increases the risk of corruption and financial abuse.

It urged the government to implement the RCI's recommendation by amending the Tabung Haji Act to bar politicians from serving on the board, while introducing broader legislation to prohibit political appointments across all statutory bodies, GLICs and GLCs.

The group also called for the enactment of a Political Financing Act that would require mandatory public disclosure of political funding and prohibit anonymous and corporate donations to prevent the misuse of public funds for political purposes.

According to C4 Center, ending political appointments is essential to restoring public trust and ensuring institutions responsible for managing the nation's wealth are governed in the public interest rather than political interests.

It said comprehensive governance reforms are necessary to prevent future scandals and strengthen accountability across Malaysia's public institutions. - DagangNews.com