M Santhananaban
Nearly six weeks after its release, the report by the Royal Commission of Inquiry into Tabung Haji emerges as a commendable and courageous document.
Its content and language are measured and moderate. But it does not deviate from stating plainly the mandated role of Tabung Haji, and how its top management might have meandered into misguided activities that veered towards mischief and manipulative misdeeds.
Needless to say, there were elements of unsound business decisions that imperilled TH.
The royal commission’s panel must be congratulated for its excellent effort and leadership. It put together a set of coherent and cogent strategies for further investigation and appropriate proceedings.
The report is final and conclusive. It should not now become the subject of fresh argument or acrimony on its core findings.
The Malaysian Anti-Corruption Commission, other relevant authorities and the public should now have a better understanding of how Tabung Haji operated with a top-heavy management team of elected MPs, senior public officials, experienced chartered accountants and other audit and oversight staff.
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It would seem this collective leadership team got immersed in groupthink. They lost sight of their central role: managing a fund devoted to ensuring sustainable and systematic governance of the pilgrimage for the average Muslim in Malaysia.
Tabung Haji held an estimated R98bn in assets. Providing a relatively small subsidy for a pilgrim’s once-in-a-lifetime trip to Mecca and Medina should have been simple and affordable.
Instead, Tabung Haji’s senior management and board of directors seem to have sleepwalked into confusion, considerable losses and catastrophic consequences.
A little prudence, professionalism and conservatism in investing Tabung Haji’s financial assets would have ensured the profitability and continued viability and versatility of this much-respected operation.
There was no suggestion in the report that Tabung Haji ran a slush fund for political activity. Rather, the focus was on mismanagement and a mismatch between Tabung Haji’s objectives and operations.
The board’s role
The Tabung Haji board of directors had a particularly onerous responsibility. They needed to keep corporate compliance, transparency, profitability, viability and sustainability of the organisation always on the radar.
For that reason, they should have kept a clear detachment from the operations of the organisation’s subsidiaries, and observed proper decorum and impartiality when formulating or agreeing to policies.
Holding entrenched positions in subsidiaries would raise questions of conflicts of interest, and of vested interest in earnings beyond their monthly directors’ allowances, chairmanship allowances and sitting allowances.
Unreasonable losses and risks
These losses and scandals at Tabung Haji happened in peacetime, when there was no evidence of economic or financial turmoil. In fact, they seem to have surfaced at a time of unprecedented buoyancy and political stability.
The current prime minister must ensure the MACC and the Attorney General’s Chambers prosecute errant Tabung Haji in an impartial, strict and professional manner. He must show he is more honourable than his last four predecessors.
Malaysia already has adequate rules and regulations on what constitutes acceptable conduct in a public body, a corporate structure and a statutory institution. No one should have the power to alter these standards.
The royal commission diplomatically suggested that ‘fit-and-proper’ people be appointed to manage Tabung Haji.
Given similar issues troubling Felda Global Ventures and the Armed Forces Fund Board (LTAT), it may also be worth looking beyond fit-and-proper people. A gentle incorporation of diversity and compassion could help avoid the pitfalls of groupthink and safeguard stakeholders’ rights.
Dato’ M Santhananaban is a former Malaysian ambassador with over 45 years of public sector experience.
The views expressed in Aliran's media statements and the NGO statements we have endorsed reflect Aliran's official stand. Views and opinions expressed in other pieces published here do not necessarily reflect Aliran's official position.
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