GEORGE TOWN: Reactions by some Lembaga Tabung Haji depositors, or those with relatives who have savings with the pilgrims’ fund, were a mixture of relief that the controversial land deal with 1Malaysia Development Bhd (1MDB) is now “settled”, and concern over the lack of transparency in the way the investment was made.

In a street poll in Ipoh, those interviewed told The Malaysian Insider that they had earlier doubted the news of the transaction, due to the source being an anonymous blog, but were shocked when it turned out to be true that one plot of land was purchased for RM188.5 million.

Pensioner Zahari Yaakob, 56, from Negri Sembilan, said had the news of the purchase been announced by Tabung Haji, it would not have created such panic among depositors.

“If they had announced it earlier, people would not have become this worried about losing their savings. Malaysians are all educated now, there should be nothing for Tabung Haji to hide,” he said.

Zahari added that since he and his wife have both performed the haj, they were not too worried about the need to withdraw their savings.

“It’s good though that they have acted fast by selling off the land,” he said.

Mohd Amirul Azri Rosli, a 28-year-old radiologist from Penang, said like Zahari, he too had initially doubted the revelation by the blog.

“We get all kinds of news surfacing from blogs that at first I did not trust it. When I learnt it was verified by Tabung Haji officials, I became more worried because I started to wonder why they didn’t just announce it earlier.

“I have not yet performed my pilgrimage to Mecca and I’m worried about the savings I have been accumulating for over 10 years,” he said, adding that he was still debating whether or not to withdraw his money.

Mohd Amirul’s friend, who only wanted to be known as Fatehah, 38, said as long as there were no recorded losses, he was not worried about his savings in Tabung Haji.

“The deal was questionable due to it being bought at such a high price involving millions. Since they are selling it now and will be making money from it, I am not so worried,” he said.

Tabung Haji confirmed this week that it paid RM188.5 million to 1MDB for a plot of land in the Tun Razak Exchange (TRX) in Kuala Lumpur.

The blog “The Benchmark” has, however, alleged that Tabung Haji purchased two plots of land in 1MDB’s TRX project for a total of RM772 million in cash, when in fact the pilgrims’ fund only bought a plot of land at a “discounted” price of RM188.5 million.

The purchase caused an uproar among its depositors, some of whom withdrew their savings at its Shah Alam branch last Thursday.

Yesterday, the fund announced it is selling the land it purchased from 1MDB following a public outcry over the transaction. — The Malaysian Insider

This article first appeared in The Edge Financial Daily, on May 12, 2015.