Malaysia

Rafizi: Tabung Haji zakat status raises questions after RCI findings on depositors’ obligations

Findings by the RCI into TH’s management and Shariah contract arrangements reveal the fund manager had used investment profits for contributions such as hajj subsidies, Rafizi claims

Updated 9 hours ago · Published on 03 Aug 2026 1:13PM

Rafizi: Tabung Haji zakat status raises questions after RCI findings on depositors’ obligations
Calls emerge for the Government, Islamic authorities and Lembaga Tabung Haji (TH) to clarify the status of zakat payments for depositors - August 3, 2026

FINDINGS by the Royal Commission of Inquiry (RCI) into Lembaga Tabung Haji (TH) regarding zakat payments made on behalf of depositors have prompted calls for clarification from the Government and Islamic authorities.

In a statement issued on Monday, Bersama de facto leader Datuk Seri Rafizi Ramli said the issue had become one of the most discussed aspects of the RCI report, particularly among Muslim depositors concerned about their zakat obligations.

The statement referred to findings in paragraphs 3.7.13 to 3.7.24 of the RCI report, which examined TH’s Shariah contract structures and the status of zakat payments during different periods of its operations.

According to the statement, the National Fatwa Committee for Islamic Religious Affairs, now known as the Muzakarah of the National Council for Islamic Religious Affairs, decided in 1979 that the Shariah contract between TH and depositors was based on the Mudarabah concept.

Under the Mudarabah arrangement, TH was responsible for paying zakat on behalf of depositors from its investment and business activities before profits or hibah were distributed.

The statement claimed that beginning in 2009, during the administration of former prime minister Datuk Seri Najib Razak, TH started using part of its investment returns to finance a portion of the hajj subsidy programme.

It said the RCI viewed the practice as inconsistent with the principles of Mudarabah, as the fund manager could not use investment profits for contributions such as hajj subsidies without the consent of depositors as partners in the arrangement.

The statement said TH changed its deposit contract from Mudarabah to Wadi’ah Yad Dhamanah in 2016, where deposits were treated as savings and TH paid hibah to depositors to avoid elements of interest.

However, the RCI reportedly found that the change in contract structure could have resulted in depositors becoming responsible for paying zakat on their own savings.

The statement said Bank Negara Malaysia had raised concerns over the matter in a letter dated June 26, 2019, to then prime minister Tun Dr Mahathir Mohamad, stating that zakat treatment under the Wadi’ah Yad Dhamanah arrangement might differ from the previous contract.

Under the Wadi’ah Yad Dhamanah arrangement, TH was considered the borrower of deposited funds, meaning zakat payments made by the institution represented TH’s own zakat obligations rather than zakat paid on behalf of depositors.

The statement added that depositors under such an arrangement may have been required to pay zakat on their savings at a rate of 2.5 per cent.

TH later changed its Shariah contract from Wadi’ah Yad Dhamanah to Wakalah in December 2019.

According to the statement, the RCI concluded that zakat payments made by TH between 2016 and 2019 under the Wadi’ah Yad Dhamanah arrangement were payments of TH’s own zakat obligations and not zakat obligations belonging to depositors.

It further claimed that the arrangement was inconsistent with the Tabung Haji Act 1995, which does not permit TH to operate as a borrower and does not place zakat obligations on the institution in such circumstances.

Bersama called on the Prime Minister and the Minister responsible for religious affairs to explain the Government’s actions in addressing concerns among TH depositors, particularly those involving the 2016 to 2019 period.

The party also urged Islamic scholars, including the Muzakarah of the National Council for Islamic Religious Affairs and state muftis, to provide guidance to depositors and advice to the Government and TH on resolving the matter.

It further called on TH to issue an explanation on steps taken to ensure depositors are not burdened with zakat obligations they believed had already been fulfilled by the institution. - August 3, 2026

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