KUALA LUMPUR: Any governance shortcomings or legal breaches involving Lembaga Tabung Haji (TH) must be resolved through due legal process grounded in evidence and established laws, said Minister in the Prime Minister's Department (Law and Institutional Reform) Datuk Seri Azalina Othman Said.
To date, TH has completed 13 of the 17 recommendations under its responsibility, representing an implementation rate of 76%, spanning governance standards, financial reporting frameworks, investment and risk management protocols, and internal decision-making structures.
In a written parliamentary reply published today, Azalina said the government respects the rule of law and judicial independence, leaving legal determinations entirely to the courts.
A comprehensive recovery and restructuring plan initiated in 2018 resolved approximately RM10 billion of an estimated RM12.6 billion in legacy investment losses, while the remaining balance of nearly RM2.6 billion is being addressed in phases through the end of 2025.
Azalina noted that TH has maintained a financial position where total assets exceed total liabilities at every financial year-end since 2018, fulfilling the statutory mandate under the Tabung Haji Act 1995 (Act 535).
"Last year, TH declared a profit distribution of 3.5%, the highest in eight years, while TH has also rebuilt its reserves to strengthen its future financial position," she said.
Of the 25 recommendations outlined by the RCI, Azalina explained that 17 fall under TH’s purview, while the remaining eight require coordination with external parties, including the Finance Ministry, Urusharta Jamaah Sdn Bhd (UJSB), and enforcement agencies.
The remaining four internal recommendations are currently being addressed and include proposed legislative amendments to Act 535, revisions to disciplinary rules, and deliberations concerning the regulatory scope of Bank Negara Malaysia or the Securities Commission Malaysia.
The eight external recommendations primarily concern enhancements to the UJSB sukuk framework and its terms, potential early redemption mechanisms, government allocations, and related regulatory enforcement measures.