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The use of “creative accounting” to conceal financial losses points to deliberate criminal intent rather than mere administrative shortcomings, according to crime analyst Kamal Affandi Hashim.
Commenting on the declassified Royal Commission of Inquiry (RCI) report into Tabung Haji, Kamal said the findings suggested the accounting practices were not accidental, but were carried out intentionally to present a healthier financial position.
“When we talk about creative accounting, we’re talking about a deliberate act. It is not something that happens by accident,” he told TRP when contacted today.
Kamal explained that under the law, criminal liability may arise not only from actively committing an offence, but also from deliberately failing to carry out responsibilities that one is legally obliged to perform.
“If there are criminal elements, the person involved can be held liable for committing the offence or for abetting it.
“The law recognises both acts and omissions. Someone who intentionally does something wrong, or deliberately fails to do what they are required to do, may both be subject to legal action,” he said.
READ MORE: RCI Bombshell: How Did Tabung Haji Pay Bonuses While Losing Money?
He added that accountability should not stop with those directly involved in preparing financial statements.
Auditors, supervisors and individuals entrusted with oversight responsibilities could also face legal consequences if they failed to detect or prevent wrongdoing through negligence or a breach of their duties.
“If an accountant intentionally manipulates the books, that individual can be prosecuted.
“But even if it wasn’t intentional, those responsible for supervising, auditing and ensuring proper governance could also be held accountable if they neglected their responsibilities.”
Kamal said that the RCI report detailed not only the alleged accounting irregularities but also the methods, manpower and processes involved, providing a clearer picture of how the financial practices were carried out.
Nevertheless, Kamal commended the current management team saying they deserved credit for steering Tabung Haji out of financial distress and restoring the institution’s standing.
The government declassified the RCI report on Wednesday night after years of public calls for greater transparency over the management of the Muslim pilgrimage fund.
READ MORE: Tabung Haji Lacks Expertise For High-Risk Investments, Says Economist
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