Tabung Haji must restore confidence of 9.7 million depositors after RCI report

The Royal Commission of Inquiry (RCI) report on Tabung Haji (TH) released last week has opened a new chapter in efforts to answer questions that have circulated among the public and depositors for years.

In an editorial, Kosmo said whatever the RCI's findings and conclusions, the exercise should not merely be about examining past episodes. The most pressing task now, it argued, is restoring the confidence of TH's 9.7 million depositors in an institution regarded as a source of pride for the Muslim community.

"Without confidence, a financial institution can be shaken and will find it difficult to face future challenges," the editorial said.

It stressed that TH is not an ordinary bank. It was set up to help Muslims save in a syariah-compliant manner to perform the fifth pillar of Islam, while also serving as an investment instrument offering competitive returns to depositors.

Its record over several decades, the editorial noted, shows the institution has contributed significantly to the economic wellbeing of Muslims in the country. For decades TH has been a symbol of successful Islamic financial management, not only in Malaysia but often cited as an example internationally.

As such, when controversy arises over its management, the biggest casualty is public trust in the institution itself.

The most challenging task facing TH's management now is to prove that lessons from what happened previously have genuinely been translated into reform. Depositors want to see changes in governance, risk management, transparency and accountability.

The editorial urged TH to be more proactive in explaining the actual situation to the public, so that the people and depositors are not left in doubt amid speculative reports circulating on social media.

As an institution closely tied to the public interest, TH must be seen to be free of any interference that could compromise professional decisions. Depositors want every decision made on the basis of good governance principles, expertise and the long-term interest of the institution rather than other considerations.

Trust takes years to build but can be damaged in a short time, the editorial said, adding that the RCI's real success will only be meaningful when the public once again places its trust in TH.