Tabung Haji zakat issue: Rafizi questions TH explanation, cites RCI findings

Former economy minister Rafizi Ramli has questioned Tabung Haji's (TH) explanation on its zakat payment practice, saying there are several notable contradictions between the pilgrim fund management's position and the findings of the Royal Commission of Inquiry (RCI).

The Parti Bersama Malaysia (Bersama) leader said the RCI had emphasised a change in the deposit contract (akad) that was not communicated to depositors, particularly on obtaining their consent for part of the investment profits to be used for subsidies.

He said the shift from mudarabah to wadi'ah yad dhamanah changed TH's relationship with depositors from that of partners to TH becoming a borrower from depositors.

"Zakat on depositors has become savings zakat of 2.5 per cent. The amount of zakat payable by TH, if paid as savings zakat rather than business zakat as practised by TH, is larger than what was paid," he said in a media statement today.

The former Pandan MP said there had been no response from TH management on the matters he raised.

He added that when TH's statement said zakat was paid on behalf of depositors without addressing the issues in the RCI report, it could give the impression that management disagreed with and rejected the report's findings.

"I hope the relevant authorities continue to provide clarification on the matters raised. Let us not repeat the episode of 10 years ago, when questions from ordinary people like me were rejected outright," he said.

Malaysiakini reported yesterday that TH had stressed its zakat payment practice was presented to and endorsed by the Muzakarah Committee of the National Council for Islamic Religious Affairs Malaysia (MKI) in June 2024, with the committee's views conveyed to the 267th Conference of Rulers meeting in October 2024.

TH also said its Shariah Advisory Committee (JPS), at a meeting on Sept 2, 2020, held that the status of zakat payments for depositors in the years before the wakalah concept was introduced in 2019 was valid and complied with Shariah.

The RCI report cited by Rafizi states that the deposit contract was changed to wadi'ah yad dhamanah in 2016 with no explanation given, and no document showed depositors had agreed to part of the investment profits being used for subsidies. Bank Negara had raised the matter in a letter to the prime minister dated June 26, 2019.

The report also said the 2016 contract change created a disharmony between Act 535 and the implementation of the contract, as under Act 535 LTH is not allowed to borrow and is not subject to zakat payment.