PETALING JAYA: Tabung Haji says that recommendations of a royal commission of inquiry that its profit distributions be declared based only on audited financial results have been carried out since 2022.
The pilgrims fund board said the findings of the royal commission reinforced the need to ensure that financial statements are prepared “transparently, consistently and in compliance with the accounting standards in force”.
According to the recently released report, TH concealed the true state of its finances for years, reporting a RM3.4 billion profit for 2017 when it should have recorded a RM1.4 billion net loss under proper accounting standards.
The inquiry found that TH engaged in “creative accounting” by using realisable asset values, instead of asset values reported in audited financial statements, to determine its ability to declare annual profit distributions, or hibah.
TH said its reforms, better risk management and strengthened investment strategies had boosted its financial performance, with the profit distribution rising from 3.1% in the 2023 financial year to 3.25% in 2024 and 3.5% in 2025, the highest rate in eight years.
“This reflects TH’s continued commitment to managing the savings of more than 9.8 million depositors in a prudent, transparent and sustainable manner,” said the pilgrims fund.
