Dewan Rakyat urges expedited amendments to the Tabung Haji Act 1995 to strengthen governance, limit political influence and ensure merit-based appointments
KUALA LUMPUR: The Dewan Rakyat today called for amendments to the Tabung Haji Act 1995 (Act 535) to be expedited to facilitate implementation of the Royal Commission of Inquiry (RCI) recommendations, particularly to strengthen TH governance, limit the Minister’s powers and prevent political influence and appointments.
The majority of government and opposition MPs who took part in the debate on the RCI report on TH said the amendments were important to address weaknesses in governance, strengthen the independence of the Board of Directors in decision-making and ensure TH management appointments were based on merit and professionalism.
Datuk Shahelmey Yahya (BN-Putatan) proposed that the Minister’s power to issue general directions to TH under Section 10 of Act 535 be abolished to enable the institution to operate more independently, foster corporate ethics in its management and ensure decisions were made based on the institution’s interests and performance.
“The concentration of powers outlined under Section 10 of Act 535 contributed to episodes of failure that affected TH’s performance and financial position.
“An institution cannot achieve excellence when political influence is mixed into decision-making,” he said during the special Dewan Rakyat sitting on the RCI report on TH in Parliament.
Shahelmey said appointments to the TH Board of Directors should also be based on merit so that the credibility and professionalism of its chairman and members were not overshadowed by executive influence.
Meanwhile, Tan Sri Muhyiddin Yassin (PN-Pagoh) urged the government to implement all RCI recommendations and proposals firmly and continuously, including improving the legal framework under Act 535 and strengthening monitoring and oversight by Bank Negara Malaysia or the relevant regulatory body.
He said other measures that should be implemented included establishing an independent and integrity-driven investment committee and restructuring TH’s investment portfolio to ensure investments were made prudently and in compliance with Syariah principles.
Syed Saddiq Syed Abdul Rahman (MUDA-Muar) said amendments to Act 535 were important to institutionalise a TH leadership appointment process free from political appointments.
“Amend the Tabung Haji Act and institutionalise it to ensure there are no more political appointments,” he said, stressing that TH leadership appointments must be made transparently and based on merit to prevent a recurrence of governance weaknesses.
Mohamad Shafizan Kepli (Batang Lupar-GPS) said the RCI’s recommendation to amend Act 535 to strengthen appointment criteria, limit the involvement of active politicians and reduce conflicts of interest on the board and in its subsidiaries should be given serious attention to safeguard the interests of depositors.
“We do not want TH, as an Islamic financial institution, to be crippled by weak financial governance. We must not allow ordinary people who have saved for years to perform the haj to become victims of these governance weaknesses,” he said.
The issue of amending the Act and the appointment of political figures to TH was also raised by several other MPs, including Datuk Azman Nasrudin (PN-Padang Serai), Young Syefura Othman (PH-Bentong), Datuk Seri Hasni Mohammad (BN-Simpang Renggam) and Datuk Mohd Suhaimi Abdullah (PN-Langkawi).
The special Dewan Rakyat sitting was held following the government’s decision to make the RCI report on TH public on July 29, allowing MPs to examine and debate its findings and recommendations.
The report revealed various weaknesses in TH’s management and operations between 2014 and 2020 and made 25 recommendations for improvement, 75 per cent of which had been implemented by TH as of July 30.
