A RM9 billion (S$3 billion) shortfall in Malaysia’s Muslim pilgrimage savings fund Tabung Haji (TH) revealed by the Pakatan Harapan (PH) government last week is set to be the hottest political potato pitting the Mahathir Mohamad administration against the two main opposition parties, Umno and Parti Islam SeMalaysia.
The alleged mismanagement will strike close to home as it concerns the hard-earned savings of nine million Malay Muslims, unlike distant scandals like 1MDB or the various failed government projects uncovered since Umno’s six decades of hegemony was broken in the May 9 election.
The government has announced what is effectively a bailout plan for the haj fund that manages RM73 billion in savings. The government is taking over assets TH bought for nearly RM20 billion that are now worth RM9 billion less.
The government’s announcement on TH by de facto Islamic Affairs Minister Mujahid Yusof Rawa confirmed a Dec 2 report in The Sunday Times that the haj fund would be restructured as its liabilities outstripped assets by RM4 billion on paper last year, and that the actual shortfall was higher at RM9 billion as accounts were falsified.
Mr Mujahid said TH was “illegally” paying dividends between 2014 and last year, as its liabilities were larger than its assets.
The government analysis of TH was announced after a review of its accounts by Pricewaterhouse-Coopers (PwC), with the report presented in Parliament last Monday.
https://www.straitstimes.com/asia/se-asia/malaysias-pilgrims-fund-scandal-strikes-at-core-of-malay-worries