PETALING JAYA: The decision to bring Lembaga Tabung Haji (TH) under Bank Negara Malaysia’s (BNM) purview is just an interim solution that will be in place until the findings of the Royal Commission of Inquiry (RCI) are presented to the government, says the finance ministry.
In a statement today, it said pilgrimage matters would remain the responsibility of the religious affairs minister.
The finance ministry also said TH would continue to perform the same functions as stipulated in the Tabung Haji Act 1995 (Act 535).
“From TH’s point of view, its board of directors and management still hold primary responsibility in determining the direction of TH, as well as the management and operations of pilgrimage,” it said.
The government has set up a Royal Commission of Inquiry (RCI) under the Commissions of Enquiry Act 1950 (Act 119) to investigate issues connected to TH.
Pending the completion of the RCI, the ministry stressed that BNM was only focusing on deposit withdrawals as well as risk and liquidity management.
This was being conducted using a different regulatory framework from that of banking institutions, and under the expertise of BNM’s shariah advisory council, it said.
“All these efforts are aimed at protecting the rights of depositors and ensuring that all investments made by TH are based on shariah principles.”
It added that the regulation of TH was in line with the government’s aim to return TH to its “original mandate” of managing depositors’ savings for the purpose of carrying out pilgrimages and using them for investment.
“Under its purview, BNM will strengthen TH’s administration and ensure there is no misuse of funds which could force the government to replace depositors’ money due to its guarantees.”
It said the total deposits amounting to RM82 billion must be managed based on checks and balances, adding that sudden withdrawals of deposits could result in liquidity problems for Islamic banking institutions and the country’s Islamic financial system.