Seven TH investments wiped out, RM13b bill lands on taxpayers and depositors, RCI debate told

Seven out of 14 troubled investments flagged in the Royal Commission of Inquiry (RCI) report on Lembaga Tabung Haji (TH) suffered a 100% loss in value, as the total financial impact linked to past mismanagement neared RM13 billion, the Dewan Rakyat was told.

Second Finance Minister Datuk Seri Amir Hamzah Azizan said the amount comprised RM10.2 billion absorbed by the government through Urusharta Jamaah in 2018, as well as RM2.6 billion in impairments borne directly by TH.

“The mismanagement of Tabung Haji was borne by everyone — losses transferred to the government were ultimately carried by the rakyat and taxpayers, while losses borne by TH affected its depositors,” he said when winding up the special Dewan Rakyat debate on the RCI report.

Amir Hamzah said accountability was therefore not optional, given that the eventual cost of the losses had been pushed onto the public.

Seven investments lost entire value

The RCI found 14 problematic investments involving questionable approval processes, including alleged concealment of information and manipulation of investment suitability reports.

Of the 14, seven investments recorded a total loss of value.

Among the investments highlighted by the government were Al-Rawda, involving RM1.8 billion; Putrajaya Perdana, RM193 million; and Trurich Resources, RM364 million.

The findings have led to the opening of five investigation papers, with authorities also pursuing civil recovery efforts both domestically and abroad.

The investigations include allegations involving unexplained wealth linked to former senior figures in TH’s leadership and management.

The government stressed that there would be no interference or protection for any party, while any decision to prosecute would rest entirely with the Public Prosecutor.

TH now on stronger footing

Despite the scale of the past losses, Amir Hamzah said TH’s financial position has since stabilised.

As at Dec 31, 2025, TH’s total assets stood at RM98.58 billion, exceeding its liabilities of RM95.63 billion.

Depositors’ savings also rose from RM75.4 billion in 2018 to RM93.4 billion in 2025.

Meanwhile, TH’s profit distribution rate increased from 1.25% in 2018 to 3.50% in 2025, with total distributions amounting to RM3.22 billion.

The government also reaffirmed that all TH depositors’ savings are protected under Section 24 of the Tabung Haji Act 1995.

Amir Hamzah said the government would proceed with amendments to the Tabung Haji Act 1995 in line with the RCI’s recommendations.

Among the proposed reforms is the introduction of Securities Commission oversight over TH’s investment activities.

The move is aimed at strengthening governance and ensuring that weaknesses in past management do not recur.

The RCI findings have shifted the debate from whether political slogans such as “sakau” appear in the report, to the larger question of how seven investments could be wiped out and how a nearly RM13 billion burden eventually fell on taxpayers and depositors.