
KUALA LUMPUR (July 29): The Royal Commission of Inquiry (RCI) investigating Lembaga Tabung Haji (LTH) from 2010 to 2020 has revealed that the institution paid out extraordinarily high bonuses to its staff and subsidiary board members, even as its financial health was in a critical state.
The report revealed, between 2010 and 2017, LTH staff received annual bonuses ranging from two to thirteen months’ salary.
"The Commission is of the view that, given LTH’s financial difficulties from 2014 to 2017, when its assets were lower than its liabilities as reported in its annual financial statements and acknowledged by the National Audit Department, the payment of high bonuses by LTH was unjustified," it said.
In 2014 alone, the bonus provision reached RM74 million, including a special two-month "special bonus" on top of an 11-month annual performance bonus.
According to the commissions, a financial review conducted by PricewaterhouseCoopers (PwC) revealed that the institution had actually been in a deficit position when two of the highest amount of bonus provisions were made between 2014 and 2015 and for several years prior.
The report further highlighted improper bonus payments at LTH wholly owned subsidiary TH Properties Sdn Bhd where special appreciation bonuses totalling RM1.15 million in 2017 and RM1.05 million in 2018 were paid to certain board members and officers.
The RCI agreed with legal findings that these payments in TH Properties violated the Companies Act 2016 because they were approved by an exco meeting that lacked the mandate and failed to obtain necessary shareholder resolutions.
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