Tabung Haji Tergelincir ?

I received the following article from a reader. I am running the story as written. My comments are at the end.

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Dear Syed,

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On your invitation, here's something I thought would be of interest to followers of your very popular blog. Appreciate if you could keep my identity confidential.

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Subject: Meant for the Small Man, Ending Up Serving the Rich

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In 1960, in the absence of syariah-compliant banks, and realising the rural poor had to sell off their property to perform haj, Prof. Ungku Aziz proposed the establishment of Perbadanan Jemaah Haji to enable the rural poor to gradually save their meagre income for purposes of going for haj. The government's response was prompt and positive. Two years later, Perbadanan Simpanan Wang Bakal-bakal Haji was established and placed under the Ministry of Rural Development. Amongst the incentives given were government ringgit-for-ringgit guarantee on deposits and tax exemption on profit derived from investment thereto. The nature of the exercise was rural-poor centric.

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In 1969, the Perbadanan was merged with the Lembaga Hal Ehwal Haji, then based in Penang, to form what was known as Lembaga Urusan dan Tabung Haji and placed under the Prime Minister's Department.

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The success of Tabung Haji's investment efforts had led to the abandonment of its raison d'etre. In the last ten years or so, Tabung Haji had transformed itself into a faceless bureaucracy identifying itself more with the likes of GLCs and financial institutions rather than the small man's fund manager. It even prides itself of playing an important role in the government's developmental efforts. It goes great lengths in securing as much deposits from rich Muslims who gleefully reciprocate with their flushed cash in return for government ringgit deposit guarantee and tax-exemption of profits derivable from investment theref.

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The concept of haj as a social and spiritual leveller had, of late, also deserted Tabung Haji. The queue for haj, the result of the quota set by saudi Arabia, is now something like fifteen years. But that is for the ordinary folk. If one has enough money to afford a haj package, which ranges from twenty thousand to a hundred and sixty thousand ringgit per pax, one can buy oneself out off the queue.

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With the present Tabung Haji corporate identity, money is not the only creature that talks. Hand in hand with money, social and economic status is definitely an asset to have. With it some can wriggle themselves into Tabung Haji's inner recesses. Many a VVIP are known to have unofficially usurped into the Official Haj Mission, although they are mere hujjaj, doing nothing except making themselves felt and demanding, and invariably getting, special facilities, including official transportation, etc. The lesser VVIPs that cannot be accommodated together with the Official haj Mission are accorded better quality accommodation and services compared to ordinary Mamat.

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Other questionable practices of Tabung Haji includes subsidy paid to each hujjaj which is not in consonance with the fact that haj is obligatory only on those who can afford it. Also contentious is the non-optional payment for meals, outside of Arafah/Mina. A family of four, for example, can save a few thousand ringgit in expenses were they given the option to share their meals or to opt for some outside meals.

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Considering that conditions that led to the establishment of the savings and investment arm of Tabung Haji had rendered it redundant, viz. the proliferation of syariah-compliant banks all over the country, it is only logical to limit Tabung Haji's functions just to haj management. In the meantime, a strong representation of depositors on the Board of Tabung Haji ought to be a minimum immedite requirement. Otherwise politicians and meek civil servants, in the absence of hawk-eyed genuine stakeholders, could be tempted to conspire for their own ends.

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My comments : Thank you Sir for writing this article. Lately we are hearing more doubts and complaints about Tabung Haji's raisson de'etre or nawaitu. For example the suggestion for them to buy hotels in places like London and Australia seem very detached from Mecca and Madinah. Why not buy or develop hotels in Mecca and Madinah? Some say, the 'GLC korporat' who now run Tabung Haji just want an excuse to visit London and Australia on Tabung Haji's expense - Business Class with full accomodation also provided of course.

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In the 90s in Kulim, Kedah members of the "exco" who oversee one of the two local authorities there, decided to spend tens of millions to build a golf resort in Kulim. Few people played golf in Kulim. Most of these "few" golfers in Kulim were also the same "exco" people. Eventually they became about the only people who played golf at that golf club. Of course the company went into receivership - "bankrap". They had used taxpayer's money to build a golf resort which had few paying customers (which of course they too enjoyed). I believe this type of behaviour is repeating itself throughout many of the GLCs. The people who run these GLCs are spending taxpayer's money for whose benefit exactly?

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For a very, very long time, the services provided by Tabung Haji to the pilgrims were second to none. They are still top notch.

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But I think something more nefarious is creeping in. As you say, they are now serving the rich. Worse I think the management is beginning to behave as though they are very rich. They are forgetting that Tabung Haji is set up to serve the ordinary man.

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I think it is a good idea that Tabung Haji depositor's (or their professional representatives) be given places on the Board of Tabung Haji. Then the Depositor's will have a direct say into the affairs of the Tabung of which they are the owners. It will also be a good idea to rotate them - say two years at the most. In this way, it will be more difficult for anyone to be 'co-opted' by any naughty people.

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We have to keep an eye on Tabung Haji.

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