By Muhammad Saufee Rosman
KUALA LUMPUR, Aug 16 (Bernama) -- The Royal Commission of Inquiry (RCI) report on Lembaga Tabung Haji (TH), which focuses on institutional integrity, accountability and governance, should not be turned into an issue driven by religious or racial sentiment, said a Universiti Teknologi MARA (UiTM) academic.
Dr Mazlan Che Soh, a senior lecturer at the Faculty of Administrative Science and Policy Studies, UiTM Seremban, said the core matters examined by the RCI were the management of trust and depositors’ funds, investments, financial reporting, as well as TH’s decision-making processes.
He said TH’s status as a vital institution for the Muslim community should not result in issues concerning its management and governance being politicised along religious, racial or partisan lines.
“Defending TH means defending the integrity of the institution itself. The greater the religious significance an institution holds, the higher the standards of trust and governance that the public is entitled to demand from it,” he told Bernama.
Mazlan said integrity is crucial given TH’s immense responsibility in assisting Muslims to perform the Haj pilgrimage and managing the savings of millions of depositors.
He said integrity in TH’s management extended beyond individual honesty, encompassing transparent financial reporting, compliance with the law and Syariah principles, risk management, investment decisions, and clear checks-and-balances mechanisms.
“Integrity is the capital of trust for TH. If confidence in its integrity is compromised, the impact affects not only the institution’s finances but also depositor confidence,” he said.
Mazlan said the RCI’s effectiveness would ultimately depend on follow-up actions, including institutionalising accountability and good governance so that they would not be dependent on specific individuals.
He also said progress in implementing the RCI’s recommendations should be reported periodically, including details of matters that had been resolved, those still being addressed, and the expected timelines for completion.
“The true measure is whether, moving forward, TH becomes an institution that is more transparent, professional and principled, and one that is more difficult for anyone to abuse,” he said.
Meanwhile, Bank Muamalat Malaysia Bhd Chief Economist Dr Mohd Afzanizam Abdul Rashid said the need for robust governance and integrity is increasingly critical given that TH manages savings amounting to about RM93.4 billion belonging to more than 9.8 million depositors, according to its 2025 annual report.
He said the substantial size of the fund required competent investment management to ensure depositors’ savings generated returns, while ensuring that every decision took into account the associated risks and the best interests of depositors.
“It certainly requires an administrator who is competent, possesses deep knowledge of investment and upholds integrity, given the vast sums of money involved in investment activities,” he said.
Mohd Afzanizam said the same principles were equally important in Haj operations, particularly when TH engaged with vendors and various stakeholders within the Haj ecosystem in Saudi Arabia.
He said clear governance processes were therefore necessary to ensure that decisions taken safeguarded depositors’ interests.
He added that the next challenge was to clearly communicate the RCI’s findings and recovery measures, both those already implemented and those still ongoing, to depositors to prevent misunderstandings or concerns over TH’s financial standing.
He suggested a more comprehensive communication approach, including field visits and engagement sessions such as district-level town halls, so that depositors could receive direct explanations of the RCI findings and the subsequent actions taken.
Meanwhile, TH depositor Nadiah An Najihah Zulkanain, 39, agreed that the RCI had focused primarily on governance and integrity in the institution’s management.
The legal counsel at a private company said TH’s responsibility for managing Muslims’ savings for the purpose of performing the Haj pilgrimage necessitated higher standards of governance and integrity.
She hoped the RCI’s findings would serve as a foundation for continuous improvement, including greater transparency in fund and investment management and ensuring that TH was entrusted to individuals with the appropriate expertise.
“There should be less political interference and greater accountability for any misconduct. Governance flaws and weaknesses must not be tolerated.
“Since TH bears the name of Islam, it must enhance its internal integrity so that depositors feel more confident and at ease keeping their money with the institution,” she said.
-- BERNAMA