Kuala lumpur: Bank Negara Malaysia (BNM) had issued five warning letters to the Tabung Haji (TH) chairman and the Minister of Religious Affairs regarding the gap between TH's assets and liabilities. The Minister in the Prime Minister's Department (Religious Affairs), Dr. Zulkifli Hasan, emphasized the urgency for TH's management to address the situation to prevent continuous violations of the law.

According to BERNAMA News Agency, Dr. Zulkifli highlighted that TH's financial standing posed a potential systemic risk to the country's financial stability. He noted that the warnings from BNM went unheeded by TH's leadership. These statements were made during a ministerial briefing on the Royal Commission of Inquiry (RCI) report on TH, focusing on the efforts to restore the institution's financial position, at a special sitting of the Dewan Rakyat.

Zulkifli pointed out that the warnings from BNM were later supported by a reprimand from the Auditor-General in the 2017 Financial Statements Report. The Auditor-General raised concerns over changes in the impairment policy, which were adjusted twice in the year to display higher profits for 2017.

Following the authorities' reprimand, TH's new board appointed PricewaterhouseCoopers (PwC) in 2018 to reassess TH's financial status and performance based on accurate accounting standards. PwC's report confirmed financial manipulation, revealing that only RM556 million of TH's total assets of RM4.6 billion were professionally valued.

On July 29, the 211-page RCI report was made public, presenting various findings on the institution's management weaknesses between 2014 and 2020. The report also proposed 25 recommendations for improvement, with 75 percent implemented by TH as of July 30.

The government announced the RCI's establishment in 2021, and its members were appointed on January 20, 2022. The report was presented to the Yang di-Pertuan Agong on August 30, 2022.