Seven of 14 troubled investments suffered total losses, while RM2.49 billion in haj accommodation rental payments remained unpaid
PUTRAJAYA: PUTRAJAYA: Taxpayers were forced to shoulder almost RM13 billion in losses to rescue Lembaga Tabung Haji (TH) from a financial crisis caused by troubled investments and mismanagement between 2014 and 2018, the Dewan Rakyat was told today.
Finance Minister II Datuk Seri Amir Hamzah Azizan said the government bore RM10.2 billion through Urusharta Jamaah in 2018, while TH absorbed another RM2.6 billion in impairment losses.
He said seven of TH’s 14 troubled investments recorded 100 per cent losses, prompting the government to intervene to protect depositors’ savings.
“The government had to save TH. If we did not, the value of the depositors’ money would have declined. That was not TH’s objective,” he said when winding up the special debate on the Royal Commission of Inquiry (RCI) report into TH’s management and operations from 2014 to 2020 today.
Amir Hamzah said the government took over assets that were no longer competitive and had limited prospects of generating returns for TH.
The assets were valued at about RM9.6 billion, but the government paid RM19.8 billion for them as part of the rescue exercise.
“TH’s mismanagement is borne by everyone. The losses transferred to the government are ultimately shouldered by the people and all taxpayers, while losses borne by TH eventually affect depositors.
“Because the losses are borne by everyone, accountability is not optional,” he said.
The RCI found 14 problematic investments and questionable approval processes, including the withholding of information and manipulation of investment suitability reports.
Amir Hamzah said Al-Rawda suffered the biggest loss at RM1.8 billion, followed by Trurich Resources at RM364 million and Putrajaya Perdana at RM193 million. In the case of Al-Rawda, TH’s investment was based solely on promissory notes.
He also said RM2.49 billion in rental payments for accommodation for haj pilgrims that should have been paid to TH remained unpaid.
Five investigation papers have been opened, while civil claims are being pursued domestically and overseas, including investigations involving a former chairman and senior management over unexplained wealth.
“The government will not interfere or protect anyone. Any decision on prosecution rests entirely with the Public Prosecutor,” he said.
Amir Hamzah said reforms recommended by the RCI would be implemented to prevent a recurrence, including amendments to the Tabung Haji Act 1995 (Act 535) to introduce Securities Commission oversight of TH’s investment activities.
Despite its past losses, TH’s financial position was now stable and strengthening, with assets of RM98.58 billion exceeding liabilities of RM95.63 billion as at Dec 31, 2025.
Depositors’ savings increased from RM75.4 billion in 2018 to RM93.4 billion in 2025, while the dividend distribution rate rose from 1.25 per cent to 3.50 per cent, amounting to RM3.22 billion.
Meanwhile, Amir Hamzah and Minister in the Prime Minister’s Department (Religious Affairs) Dr Zulkifli Hasan assured that all deposits remained guaranteed by the government under Section 24 of Act 535.
“People’s haj savings are safe, and the institution entrusted with their aspirations to perform the haj will always be safeguarded for today’s generation and generations to come,” Amir Hamzah said.
