MACC, police and IRB ramp up investigations into alleged Tabung Haji irregularities after RCI report

 

MACC, police and IRB ramp up investigations into alleged Tabung Haji irregularities after RCI report



The RCI report, which examined TH’s operations between 2014 and 2020, highlighted numerous governance weaknesses and alleged excessive political interference in profit distribution and haj operations. — File picture by Hari Anggara


Summary

• Following the release of the Royal Commission of Inquiry (RCI) report on Lembaga Tabung Haji (TH), Malaysian enforcement agencies have intensified investigations into alleged management irregularities.
• The Malaysian Anti-Corruption Commission (MACC) has detained five individuals from diverse professional backgrounds and separately delved into an RM370 million share acquisition case involving a statutory body.
• The Royal Malaysia Police and the Inland Revenue Board are also probing discrepancies in asset ownership and income declarations, respectively.
• The RCI report, which scrutinized TH's operations from 2014 to 2020, uncovered governance weaknesses and financial inconsistencies, prompting recommendations for forensic audits.
• These findings will be examined in a special Dewan Rakyat sitting on August 11.

First Published: Saturday, 08 Aug 2026 2:53 PM MYT
Last Modified: Saturday, 08 Aug 2026 2:54 PM MYT




KUALA LUMPUR, Aug 8 — Enforcement agencies have stepped up action following the release of the Royal Commission of Inquiry (RCI) report on Lembaga Tabung Haji (TH), with investigations now focusing on individuals linked to alleged management irregularities at the institution.


By yesterday, the Malaysian Anti-Corruption Commission (MACC) had remanded five individuals to assist in investigations into various alleged misconduct uncovered in the 211-page report released on July 29.


Those remanded for between three and five days comprised individuals from various professional backgrounds, including a former plantation manager, a design company director, a deputy general manager for construction, an occupational safety and health manager, and a project director of a statutory body’s property company.


Separately, the MACC Special Task Force detained the former chief executive officer (CEO) and former chief financial officer (CFO) of a statutory body on Aug 4 to facilitate investigations into alleged abuse of power involving a RM370 million share acquisition involving two plantation companies.


However, both suspects, aged 68 and 60, were released due to health reasons. The former CFO completed giving his statement yesterday, while the former CEO remains on medical leave.

Meanwhile, the Royal Malaysia Police (PDRM), through its Commercial Crime Investigation Department (CCID), has opened five investigation papers following nine reports lodged by TH, its subsidiaries and members of the public.


CCID director Datuk Rusdi Mohd Isa said investigators were in the process of recording statements from witnesses in Malaysia and abroad, as well as obtaining relevant documents to complete the investigations.

The Inland Revenue Board (IRB) has also begun investigating several individuals after detecting significant discrepancies between their ownership of luxury assets and their declared income.

It said its tax risk analysis had uncovered inconsistencies in the individuals’ income declarations, prompting raids at several premises to seize documents and verify facts relevant to the investigations.

The RCI report, which examined TH’s operations between 2014 and 2020, highlighted numerous governance weaknesses and alleged excessive political interference in profit distribution and haj operations.

Among the report’s most striking findings was that TH should have recorded a net loss of RM1.4 billion for the 2017 financial year, but instead reported an extraordinary profit of RM3.4 billion in its financial statements.

Following severe asset impairment, the report recommended forensic audits into several high-risk investment decisions involving PT TH Indo Plantations, Emrail Sdn Bhd, Wellspring Worldwide Limited, Abraj Sdn Bhd, Putrajaya Perdana Bhd, TH Plantations Bhd, TH Properties Sdn Bhd, Alam Maritim Resources/TH Marine, TH Hotel & Residences Sdn Bhd and FGV Bhd, which allegedly resulted in substantial losses to depositors’ funds.

It also proposed several measures, including recovering RM2.19 million in bonuses paid to TH Properties’ board members and management after finding that the payments did not comply with established regulations.

The report further described bonus payments equivalent to between two and 13 months’ salary awarded to TH staff between 2010 and 2017 as excessive and unjustifiable given the institution’s financial position during that period.

The findings and recommendations are expected to come under scrutiny during the special Dewan Rakyat sitting scheduled for Aug 11 to debate the RCI report.

On Aug 5, Communications Minister Datuk Seri Fahmi Fadzil said between 35 and 40 MPs had expressed interest in participating in the special sitting. — Bernama