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Kota Kinabalu: Sabah lawmakers on Wednesday pressed the government to act on the findings and recommendations of the Royal Commission of Inquiry (RCI) into Tabung Haji (TH), raising concerns over asset management, investments, audit integrity and accountability.
Papar MP Datuk Armizan Mohd Ali called for clarification on key issues raised in the RCI report, including the government’s 2018 decision for TH to sell some assets to Urusharta Jamaah Sdn Bhd (UJSB) and whether the move had restored confidence in the institution.
“There are allegations that the Government’s decision in 2018 for TH to sell some of its assets to Urusharta Jamaah Sdn Bhd (UJSB) was inappropriate, affecting not only TH but also the country’s finances.
“Please explain in detail to what extent the move has helped restore TH and the current status of the Government’s financial commitments and implications following the implementation of the strategy,” he said when debating the RCI report in Parliament on Tuesday.
Armizan also sought the government’s position on recommendations to strengthen TH’s investment governance and regulatory framework, citing findings of weaknesses in the investment approval process and questionable investments involving companies including Putrajaya Perdana, Al Rawda and Deru Semangat.
“It was alleged that the decisions were made without proper due diligence and approved by parties who did not necessarily have expertise in investment,” he said.
He also asked whether the government would act on the RCI’s recommendation for forensic reviews of at least 14 questionable investments.
Armizan said the RCI report found that irregular investment processes, rather than normal stock market fluctuations, were behind TH’s nearly RM13 billion in losses up to 2018.
“TH-related issues have previously been overshadowed by disputes and accusations, which have confused the public. There is also concern that some individuals may have been wrongly accused and become victims of defamation after being portrayed as the cause or source of such allegations.
“Focus should instead be placed on efforts to save TH, an institution entrusted with managing the savings of Muslims, while also addressing the implications of using public funds to rehabilitate the institution, given that TH now has 9.7 million depositors nationwide, including 597,983 depositors in Sabah.
“Therefore, investigations by enforcement agencies following the RCI’s findings are most welcome, but they must be carried out transparently, independently and professionally to ensure justice for all parties, particularly depositors,” he said.
Armizan also questioned the integrity of audit reports submitted to the Cabinet, Parliament and the public following the RCI’s findings on TH.
“Please clarify the Government’s position on the audit issues raised in the RCI report and, at the same time, how the Government can assure the public that the integrity of the Auditor-General’s Reports, including at present, remains reliable and is in line with the responsibilities entrusted under the Federal Constitution,” he said.
He welcomed the National Audit Department’s Auditor General Dashboard, which provides access to audit findings and follow-up actions and called for stronger legal and governance safeguards to prevent financial management practices that could have long-term implications for public finances.
Semporna MP Datuk Seri Mohd Shafie Apdal asked what action had actually followed the RCI, questioning whether its recommendations were being properly implemented.
“Seriously, as a government, have we done our bit to ensure that we have been implementing the recommendations made by the RCI committee?” he said.
Shafie questioned why action had taken years despite the RCI calling for firm and immediate action over reports or complaints involving alleged misconduct in TH.
“They know what action is to be taken, but why delay that? This is my concern,” he said.
He said the parliamentary debate should not mark the end of the process.
“Don’t just debate what follow-up action has been taken by the Government. Ministers have debated it today, but I want to see that it does not end with today’s debate.
What next?” he said.
Shafie also questioned the use of special purpose vehicles (SPVs) and financial restructuring to address institutional financial problems, including whether raising debt to meet existing liabilities was appropriate, describing it as effectively borrowing to pay debt.
“Is this the right way to do things?” he asked.
He said taxpayers ultimately bore the burden of such arrangements and questioned what action had been taken against those responsible for the original problems.
“Stop this practice of creative accounting,” he said, warning that reliance on SPVs could encourage other entities to adopt similar approaches when facing financial difficulties.
Shafie also questioned the use of other public entities or companies to cover losses caused by weak management, saying restructuring would have little purpose if those responsible escaped legal action.
He said Parliament and the public had the right to know the latest status of RM19.9 billion in assets managed under the SPV, given that public funds were involved.
Shafie urged the government and ministers responsible for the country’s finances to ensure any misappropriation was stopped, saying public funds should be used to address grassroots needs rather than be lost through poor management or wrongdoing.
Tuaran MP Datuk Seri Wilfred Madius Tangau took a broader approach, calling for amendments to the Commissions of Inquiry Act 1950 to ensure RCI recommendations are implemented until underlying problems are resolved.
He said the challenge was no longer uncovering the truth through an RCI, but translating its findings into accountable governance reforms.
“The country’s experience with the RCI on Illegal Immigrants in Sabah, the RCI into the death of Teoh Beng Hock and now, the RCI into Tabung Haji shows that the same experience has been repeated, proving that it is time for the country to strengthen the system.
“The Tabung Haji RCI report, which was completed in 2023, was only presented in Parliament several years later due to the absence of a clear legal requirement on the period for RCI reports to be presented in the House,” he said.
Madius proposed a Commissions of Inquiry (Implementation of Recommendations and Accountability) (Amendment) Bill to make implementation of RCI recommendations part of the inquiry process.
“I propose that every RCI report be followed by a National Reform Plan detailing the actions, lead ministries, implementation timeline, financial requirements and Key Performance Indicators for each recommendation and that it be made compulsory to table the plan in Parliament.
“The relevant Parliamentary Special Select Committee should also be given the mandate to monitor the implementation of RCI recommendations periodically and to summon the ministries and agencies responsible to provide explanations,” he said.
Referring to the RCI on illegal immigrants in Sabah, Madius said the Permanent Secretariat recommended by the commission had met only 13 times in more than a decade, while illegal immigration remained a major challenge.
“Let us ensure that every Royal Commission of Inquiry from now on not only succeeds in finding the truth, but also succeeds in implementing the truth until the country’s problems are truly resolved,” he said.
Sipitang MP Datuk Matbali Musah called for all recommendations in the TH RCI report to be implemented, stressing that follow-up action must be transparent and free from interference.
“The Government should continue all follow-up actions based on the RCI’s findings in a professional, transparent manner and free from any form of interference.
“Let every action be guided by the law, rather than pressure from any party,” he said.
Matbali said the RCI, which covered the period from 2014 to 2020, contained findings warranting serious attention and that its recommendations should be assessed through existing legal processes.
“We also support the Government and Prime Minister’s position that follow-up action should be carried out in accordance with the law and the principles of good governance.
“At the same time, I wish to stress that the investigation process must be given full space to proceed without any interference,” he said.
He said enforcement agencies should be allowed to carry out their duties without being influenced by public perception.
“Let them discharge their responsibilities freely, professionally and with integrity,” he said.
