Amanah Betrayed: Why the Tabung Haji Scandal is the Real Test of Merdeka
by Azam Aris
For two consecutive weeks, during Friday prayers, on Aug 28 and Sept 4, the imam at the Putra Heights mosque – echoing sermons delivered at other mosques across Selangor – spoke forcefully about the need for Muslims to free themselves from greed and to place the highest importance on preserving amanah, or trust.
As the nation commemorated Merdeka on August 31 and Hari Malaysia on September 16, marking our freedom from colonial rule, the imam reminded the congregation that independence has little real meaning if Muslims fail to uphold and pass on the trust that comes with freedom.
That trust, he said, includes nurturing a generation with strong iman, or faith – one that is principled, knowledgeable, virtuous, honest and resilient in the face of adversity.
“Behind the monumental struggles of our national heroes in discharging the people’s amanah to attain our country’s liberty, there exist among us those who have chosen to elevate their own selfish interests to the extent of betraying the religion, its adherents and our beloved homeland.
“Today, after 69 years of Merdeka (and 63 years since the establishment of Malaysia incorporating Sabah and Sarawak), our principal adversary is no longer the colonialists who brandished their weapons, but rather the pervasive scourges of bribery and abuse of power that have become deeply entrenched within our own society, corroding the very essence of freedom.
“Authority and status are amanah that must be discharged with utmost excellence in leading and protecting the welfare of the Muslim ummah, not exploited as instruments to usurp wealth or pursue personal aggrandisement. While the citizenry grapples with mounting hardships, there exist those who are surreptitiously revelling in riches amassed from betrayed trusts and violated justice.”
These are strong words. One can only hope they strike a chord with those who heard them, and perhaps more importantly, with those entrusted with power and the people’s money.
The imam also reminded the congregation that many Muslims have entrusted their savings to institutions such as Lembaga Tabung Haji (TH), paid zakat (compulsory alms) and contributed to waqf (endowment) and sadaqah (charity). They do so because they believe their money and contributions will be managed with amanah, transparency and accountability.
“Every individual entrusted with the responsibility of managing the funds and interests of this ummah – whether as manager, committee member, trustee or one vested with authority over public finances – bears, in reality, a monumental burden of accountability in the sight of Allah. Managing public funds with integrity is a tangible manifestation of our devotion to the ummah and our nation. Do not allow wealth that is supposed to bring benefit to the ummah to be plundered for selfish gain.”
The sermon, however, also carried an important reminder: while Muslims must reject betrayal of trust, those accused of wrongdoing must be given a fair and thorough investigation.
The imam was right to remind Muslims that upholding trust and rejecting bribery are religious obligations that must be taken seriously.
As a depositor in TH, I hope the recommendations of the Royal Commission of Inquiry (RCI) into the pilgrims’ fund between 2014 and 2020, as well as the subsequent investigations, including criminal and forensic accounting probes into losses suffered by its subsidiaries, will be allowed to run their course.
We must not allow the RCI and its findings to be dragged into the mud of political games. Instead of supporting the RCI and allowing the authorities to follow up on its recommendations, certain political parties and sections of society have become preoccupied with arguments over what to accept and what to reject from its findings. Enough of this political posturing.
Let us first establish the facts.
TH was in serious financial trouble and needed a bailout, which was not a small one. The government had to rescue TH with a financial injection of more than RM10 billion through a special purpose vehicle, Urusharta Jamaah Sdn Bhd, after its financial position deteriorated badly.
By the end of 2017, TH’s liabilities had exceeded its assets by RM4.1 billion. Based on this, and under the provisions of the Tabung Haji Act 1995, the institution should not have declared any dividends or hibah. Yet, it did so after using the realisable asset value method to increase the value of its assets.
The RCI found that in 2017, TH should have reported a net deficit of RM1.4 billion instead of a profit of RM3.4 billion had proper accounting standards been applied.
To suggest otherwise is to ignore the reality of TH’s financial condition at the time. The RCI also found that seven out of 14 problematic investments suffered total losses estimated at RM2.58 billion. These cannot simply be dismissed as bad luck or the result of market conditions. According to the RCI’s findings, some transactions proceeded despite serious shortcomings in due diligence.
The implications go far beyond accounting standards and technicalities. We are talking about billions of ringgit belonging to ordinary people, Muslims who had deposited their hard-earned savings in TH, either to prepare for the haj or simply to save for their future.
Those losses were real. So was the damage to trust.
Instead of denying the facts, hiding behind technical arguments, dismissing the RCI as flawed and calling for another inquiry, let TH and the government get on with implementing the RCI’s recommendations, including amending the TH Act to put its investments under the oversight of the Securities Commission Malaysia.
Let the investigative authorities, including the Malaysian Anti-Corruption Commission (MACC), continue with their work. And let those who have already been charged defend themselves in court.
At the same time, the bipartisan Parliamentary Public Accounts Committee (PAC) should also be allowed to do its job. Its inquiry into TH’s governance, financial discrepancies and investment irregularities is important. PAC chairman Datuk Mas Ermieyati Samsudin has said the committee’s work will not duplicate the RCI’s extensive investigation but will instead focus on the status of the implementation of its recommendations.
As a depositor who intends to keep his savings in TH, I sincerely hope that when these follow-up investigations are completed, we will finally know who betrayed the trust placed in them and that those responsible will be held accountable.
The financial losses, however large, are only one part of this tragedy. The greater damage is the loss of trust among the Muslim community in an institution that was once regarded as almost sacred. That trust took decades to build but can be destroyed in just a few years. And once trust is lost, rebuilding it is never easy.
The investigations now underway must answer some fundamental questions.
- Did the CEO, chief financial officer and senior management deliberately conceal the true financial position from the board of directors?
- If so, did the board, which included Umno politicians, ask the right, probing questions?
- Or, did the board, knowing full well of the losses, then pressure the TH senior management to show profit so that dividends and hibah could still be distributed as the 2018 general election was approaching?
- On the other hand, did the board, after knowing of the losses, inform the minister in charge that dividends and hibah could not be distributed?
- Did the minister then inform the cabinet and prime minister accordingly?
- Finally, was there improper pressure from the prime minister and cabinet to do otherwise – show profit, cover the losses and continue to give dividends?
These are not trivial questions. Somewhere along this chain of command, things could have been stopped. Somebody could have said no. Somebody could have stood up and said that what was happening was wrong.
Somebody could have refused to betray the amanah entrusted to him. Had that happened, perhaps a much bigger financial scandal could have been avoided.
The imam at the Putra Heights mosque was right. A truly independent Malaysia is not simply one that has freed itself from colonial rule. It is one where political and corporate leaders carry out their responsibilities honestly, public funds are properly protected and the people’s trust is not abused.
He reminded the Muslim ummah that every amanah must be fulfilled honestly, no matter how small or how big it may appear. Amanah is the foundation of trust, and without trust there can be no real well-being for society.
The Muslim ummah must therefore guard against betraying any amanah. When trust is broken, it does not only destroy institutions and reputations. It can also destroy the barakah, or God’s blessings, of a community.
The imam’s message may have come in the form of a didactic sermon. But as the nation celebrates its independence and Hari Malaysia, it is also a message that goes far beyond the mosque.
Freedom from colonial rule gave us independence. But independence means little if those entrusted with power and the people’s money betray the very amanah they were appointed to protect.
And perhaps, that is the question we should all be asking, as in the case of TH: who, along the chain of command, betrayed the people’s trust?
(Azam Aris is an editor emeritus at The Edge)
Source: The Edge (14 September 2026)