Lembaga Tabung Haji (TH) will no longer allow active politicians to be appointed to or serve on its board of directors as part of efforts to strengthen the institution’s governance.
TH chief executive officer Mustakim Mohamad said the policy would also be reflected in amendments to the relevant Act.
“There are now no appointments or involvement of active politicians, and this will also be implemented through amendments to the Act later,” he said during the Ummah Dialogue: Realities and Future of Tabung Haji session on TH’s achievements and future strategies here on Thursday.
Mustakim said the move was in line with efforts to strengthen TH’s governance and ensure board appointments were made based on “fit and proper” practices similar to those adopted by the Securities Commission Malaysia and Bank Negara Malaysia.
As part of other reforms, TH has also introduced guidelines on profit distribution, with profit declarations to be made only after its financial statements have been audited.
He said TH also re-established its investment panel in 2021 and refined its investment policies.
On the implementation of recommendations by the Royal Commission of Inquiry (RCI), Mustakim said 19 of the 25 recommendations had been completed or finalised, while six remained in progress.
He said some of the outstanding recommendations involved policy proposals that would need to be brought to the Cabinet and Parliament.
“More than 90 per cent of the implementation is underway, but there is still a long way to go before bringing them to the Cabinet,” he said.
The six recommendations still being addressed include amendments to Act 535, limiting the scope of Bank Negara Malaysia’s oversight of TH and strengthening disciplinary processes.
They also cover policies on withdrawal of savings, automatic eligibility for haj registration, targeted Haj Financial Assistance (HAFIS), increasing the haj registration savings threshold to RM12,980 and the investment function under the “Dana Haji”.
Mustakim said TH’s reforms and improvements were not focused solely on issues that occurred before 2018, but also covered the period after that.
He stressed that the efforts were consistent with TH’s objectives, including managing depositors’ funds prudently, providing quality deposit services on an ongoing basis and generating sustainable Shariah-compliant returns.
“Our responsibility is to ensure the depositors’ savings are safe and that Tabung Haji can facilitate pilgrims who are able to perform haj in a safe and proper manner.
“We acknowledge past weaknesses and are showing progress today to rebuild depositors’ confidence, while continuing our commitment to reforms that have been implemented since 2018,” he said.
