Tabung Haji to be put under BNM supervision from Jan 1

Tabung Haji to be put under BNM supervision

-A +A

KUALA LUMPUR (Dec 10): As part of its restructuring plan, troubled Lembaga Tabung Haji (TH) will be put under the supervision of the central bank from January next year as part of efforts to win back the trust of depositors.

Minister in the Prime Minister's Department Datuk Seri Dr Mujahid Yusof Rawa said the weak governance under the previous management of pilgrim's fund 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 in 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 told a press conference at Parliament lobby today.

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

Mujahid also said the Cabinet has given full support to the recovery plan for TH, which includes the establishment of a special purpose vehicle (SPV) this month to take over, restore and maximise the recovery efforts of underperforming assets, as well as sales of the assets to improve TH’s financial position.