- The RCI report published on July 29 revealed various findings involving Tabung Haji’s management and governance from 2014 to 2020, and a special Dewan Rakyat sitting will be held on Aug 11 to debate the report.
- EAIC adviser Mazlan Ahmad has urged the Inland Revenue Board (LHDN) to investigate possible tax evasion involving the Tabung Haji (TH) group and its subsidiaries.
- Mazlan stated, “I certainly believe some tax evasion was happening, whether in the group or its subsidiary in commercial sectors. Therefore, LHDN must look into this,” in an interview on The Nation programme aired by Bernama TV.
- Mazlan called for a comprehensive investigation supported by forensic accounting to trace the flow of funds, including their origin, destination and beneficiaries.
- Mazlan also called for a thorough examination of possible money laundering, saying the investigation should cover the entire ecosystem surrounding the institution and its transactions, not just management or board level figures.
- Mazlan described the issue as a systemic risk, adding, “It is not a one-man show.”
- He pointed out that one of the fundamental problems highlighted by the RCI was a lack of governance, particularly at the board level.
- Mazlan, a chartered accountant and council member of the Malaysian Institute of Accountants, said the board of directors had a fiduciary duty to provide proper oversight, checks and balances, and direction for the organisation.
An adviser to the Enforcement Agency Integrity Commission (EAIC) has urged the Inland Revenue Board (LHDN) to investigate potential tax evasion involving Tabung Haji (TH) and its subsidiaries as investigations into the royal commission of inquiry’s findings intensify.1234
Mazlan Ahmad, the EAIC adviser, emphasized the need for forensic accounting to trace the flow of funds, including their origin, destination, and beneficiaries. He stated, “I certainly believe some tax evasion was happening, whether in the group or its subsidiary in commercial sectors. Therefore, LHDN must look into this,” during an interview on Bernama TV.567910
Mazlan also highlighted the importance of examining potential money laundering, asserting that the investigation should encompass the entire ecosystem surrounding the institution and its transactions, not just the management or board level. He remarked, “It looks like a systemic risk. It is not a one-man show,” indicating a broader issue at play.
The RCI report, published on July 29, revealed significant governance issues within Tabung Haji’s management from 2014 to 2020, particularly a lack of oversight at the board level. Mazlan, a chartered accountant, stressed that the board of directors has a fiduciary duty to ensure proper checks and balances, stating, “The board of directors is accountable for whatever is done by the management. They must perform their fiduciary duty and provide checks and balances.”8
A special Dewan Rakyat sitting is scheduled for August 11 to debate the RCI report's findings.
“Mazlan Ahmad, a chartered accountant, said the board of directors had a fiduciary duty to provide oversight, and he called for a thorough examination of possible money laundering. The RCI report, published July 29, flagged governance failures from 2014 to 2020, with a special Dewan Rakyat sitting set for Aug 11.”
