Politics shaped key decisions at Tabung Haji

Wednesday 30 Sep 2026

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KUALA LUMPUR (July 29): Political considerations drove key decisions at Lembaga Tabung Haji, including on hibah distributions and board appointments, a royal inquiry report found.

Apart from the widely-reported overpayments of dividends to depositors, the Royal Commission Inquiry into the pilgrim funds board’s affairs between 2014 and 2020 also uncovered “political elements” driving decisions on haj fees and financial support.

For instance, the government’s freeze on haj fees since 2009 for Muassasah pilgrims forced Tabung Haji to subsidise the pilgrimage with its investment profits — a move the RCI said compromised its long-term sustainability.

In the 211-page RCI report, which was declassified on Wednesday (July 29) , the commission said external consultant Roland Berger’s (RB) review, flagging financial troubles in 2017, was also “unfortunately” ignored by Tabung Haji’s management amid political pressure in the lead-up to the elections.

“There were no records to show that the report was ever presented to the board,” the commission said.

In 2017, Tabung Haji hired RB as a consultant to conduct a five-year strategic business plan review. According to the RCI, RB's review was comprehensive, but Tabung Haji management at the time reportedly ignored the findings and did not present the report to the board.

RB's findings showed that the pilgrim fund had used its reserves to pay out hibah (profit distributions) in 2012, 2014 and 2016, noting Tabung Haji's shrinking reserves.

The consultant then warned that the implementation of the MFRS 9 accounting would expose Tabung Haji's RM2.6 billion in estimated losses. It highlighted that the pilgrim fund was suffering from large unrealised losses and impairments as it continued to pay profits, even though its liabilities exceeded the value of its assets.

Barisan Nasional, led by former prime minister Datuk Seri Najib Razak, was under severe stress ahead of the historic elections in 2018 that ultimately ended the coalition’s unbroken rule since Independence.

Tabung Haji affairs are deeply significant to the millions of Muslim depositors that rely on the fund for their pilgrimage.

The commission also took note of appointments of politicians to its board, including chairman, between 2014 and 2018 that created “unrest among the community.” Umno politician Datuk Seri Abdul Azeez Abdul Rahim was chairman of Tabung Haji between 2013 and 2018.

“This situation has caused some parties to take advantage” by turning decisions made by Tabung Haji into criticism, affecting the fund’s credibility, the commission noted.

There was also “systemic” governance failure regarding the involvement of Tabung Haji’s top management and board members in its subsidiaries. The commission highlighted numerous high-ranking individuals who held more than a dozen key positions simultaneously.

Tabung Haji’s former chief executive Datuk Johan Abdullah held positions in 18 subsidiaries while Datuk Rozaida Omar, who was chief financial officer at the fund, was present in nearly two dozen subsidiaries.

The “over-involvement caused a critical lack of focus on core duties” at Tabung Haji while creating “severe” conflicts of interest, the commission said.

Further, the former minister in the Prime Minister’s Department responsible for Tabung Haji at the time, Datuk Seri Jamil Khir Baharom, was found to have expertise limited strictly to religious matters, forcing him to rely entirely on the board and management for matters over multi-billion ringgit investments and fund management.

The six-member Royal Commission of Inquiry was chaired by former chief justice Tun Md Raus Sharif, while its members included former chief secretary to the government Tan Sri Samsudin Osman and RHB Group founder Tan Sri Abdul Rashid Hussain, who is now the chair of Tabung Haji.

The three other members were former Bank Muamalat Malaysia Bhd chairman Tan Sri Dr Mohd Munir Abdul Majid, Sultan Abdul Halim Mu’adzam Shah International Islamic University (UniSHAMS) vice-chancellor Prof Dr Asmadi Mohamed Naim and chartered accountant Norsyahrin Hamidon.

The six commissioners were appointed and commissioned by the 16th Yang di-Pertuan Agong on Jan 20, 2022, for a six-month term ending on July 19 that same year.

Edited ByKathy Fong & Jason Ng

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