A comprehensive and continuous forensic audit of Lembaga Tabung Haji (TH) should be carried out immediately and completed within a year, former prime minister Tan Sri Muhyiddin Yassin has urged.
Muhyiddin, who is also PN-Pagoh MP, said the audit was necessary to examine investment decisions that had contributed to the institution’s decline in asset value.
He said an independent forensic audit would help trace the flow of funds and determine whether fraud, abuse of power or negligence had occurred.
“Given the highly complex governance weaknesses and leakages in the management of TH funds, a comprehensive and continuous forensic audit must be carried out immediately and completed within a year.
“Anyone responsible for causing losses to TH funds through fraud, abuse of power or negligence must be brought to justice,” he said during a debate at the Special Dewan Rakyat sitting on the Royal Commission of Inquiry (RCI) report on TH today.
The RCI report on TH’s management and operations between 2014 and 2020 highlighted several suspicious transactions and alleged concealment of information surrounding past investment decisions.
It also identified 14 entities and problematic investments recommended for forensic audits, including PT TH Indo Plantations, Emrail Sdn Bhd, Wellspring Worldwide Limited, Deru Semangat Sdn Bhd, Trurich Resources Sdn Bhd and Abraj Sdn Bhd.
Muhyiddin also expressed concern over allegations that TH’s losses had been concealed through “creative accounting”, while the institution was previously portrayed as having recorded profits.
“In reality, as shown in the RCI report, TH suffered losses amounting to billions of ringgit,” he said.
He added that the Auditor-General was also criticised in the report for issuing a clean audit certificate to TH.
Muhyiddin further called for the RCI’s recommendation to end the appointment of political figures or individuals with active political interests to TH’s board and senior management to be implemented.
He said the move was important to prevent political interference in investment decisions and the management of depositors’ funds.
“The appointment of TH board members and senior management, including those of its subsidiaries, must be based on merit, integrity, professional qualifications and extensive experience in finance, banking, investment, law and Shariah,” he said.
