Bank Negara to Supervise Tabung Haji from January

572
- Advertisement -

Lembaga Tabung Haji (TH) will be placed under Bank Negara Malaysia’s (BNM) supervision starting January next year to improve the organisation’s governance, said Minister in the Prime Minister’s Department, Datuk Seri Dr Mujahid Yusof Rawa.

He said the move was part of a comprehensive turnaround plan to improve TH’s balance sheet as it had recorded a deficit of RM4.1 billion as at Dec 31, 2017.“The cabinet has discussed the recovery plan in detail and fully supports it,” he told reporters at the Parliament lobby today.

Mujahid added that the weak governance under the previous management of TH had violated the trust of the rakyat.

“For this restructuring of TH that we are doing, it is important that the fund is put under the supervision of Bank Negara Malaysia (BNM) and to be subject to the strict financial standards and governance requirements.

“The government is committed to ensuring the recovery of the rakyat and depositors’ trust in TH with the new leadership and management team of the fund, after what has transpired under the previous management,” he said.

As it is, BNM does not have any regulatory oversight of TH, as the fund is only governed under the Tabung Haji Act 1995.