Up to 13 months’ bonus paid out despite financial concerns

The RCI report said the practice of awarding 'excessively high' bonuses to staff members should be discontinued, especially given TH’s financial difficulties.PETALING JAYA: Tabung Haji employees received bonuses ranging from two to 13 months’ salary between 2010 and 2017, including a special bonus payout in 2014 that cost the institution RM74 million, according to the RCI report made public today.The report said the practice of awarding “excessively high” bonuses to staff should be discontinued, especially given TH’s financial difficulties during the period.It recommended that efforts be made to recover bonuses paid to those involved as the payments were made without complying with the prescribed regulations.Under government guidelines, bonus payments exceeding two months’ salary could be considered if a large number of officers and employees had demonstrated outstanding performance.The commission said the bonus approval process involved three levels - the TH board, the religious affairs minister, and the finance minister.However, it noted that both ministers generally received bonus proposals that had already been recommended by TH management and the board.The justification given for the bonuses was TH’s strong profits during those years, with the proposed payments calculated based on between 1.7% and 2.5% of annual profits.However, the RCI said the high bonus payments were inappropriate, taking into account TH’s financial position between 2014 and 2017, when its assets were lower than its liabilities, as reported in its annual financial statements and acknowledged by the national audit department.The commission also agreed with the legal opinion provided by law firm Md Tajuddin & Co that bonus payments made to the TH Properties board of directors breached provisions under the Companies Act 2016.