Kuala lumpur: Lembaga Tabung Haji (TH) has reported substantial financial setbacks, with losses amounting to nearly RM13 billion due to 14 problematic investments. Finance Minister II Datuk Seri Amir Hamzah Azizan disclosed that seven of these investments suffered total losses.
According to BERNAMA News Agency, the largest loss was associated with TH's investment in Al-Rawda Real Estates Development and Project Management Co Ltd, a Saudi Arabian property development company. This investment led to a full impairment loss of RM1 billion in 2024 after Al-Rawda defaulted on rental payments.
The losses, comprising RM10.2 billion borne by the government through a 2018 bailout via Urusharta Jamaah Sdn Bhd and RM2.6 billion in impairment losses by TH from 2018 to 2025, were discussed during a special Dewan Rakyat session.
Amir Hamzah highlighted that the Al-Rawda investment lacked a bank guarantee, relying solely on a promissory note, which failed to protect the interests of Malaysian Muslims. This flawed transaction placed over RM1.5 billion of depositors' funds at risk.
The minister called for an investigation into who benefited from the transaction and whose interests were prioritized. The authorities have been urged to expedite this probe.
Additionally, another problematic investment identified by the Royal Commission of Inquiry involved the construction of three offshore patrol vessels (OPVs) for the Malaysian Maritime Enforcement Agency. This project was undertaken by TH's associate company, TH Heavy Engineering Bhd, and faced significant challenges.
A forensic audit revealed irregularities in the OPV project, including unrecorded funds amounting to RM48.1 million and potential further irregularities of RM195.4 million. The audit also noted a former director of Destini Bhd receiving RM1 million through a related company.
Ultimately, only one of the three vessels was completed, with the first vessel delivered in January 2024, over three years late. The contracts for the remaining two vessels were terminated by mutual agreement, with additional costs estimated at RM310 million to complete them.
Amir Hamzah emphasized the governance weaknesses in the transactions involving TH and Destini, which not only resulted in losses but also imposed further financial burdens on the government.