Tabung Haji grants received during deficit years remain valid, says Mufti

The Malaysian Federal Territories Mufti, Ahmad Fauwaz Fadzil, has affirmed that the "hibah" (grants) distributed to Tabung Haji (TH) depositors, even during years when the institution faced financial deficits, remain legally valid and are the rightful property of the depositors. This clarification addresses concerns regarding the legitimacy of these funds.

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TH is considered to be borrowing money from depositors for investment and other purposes. Therefore, TH cannot promise any profit; instead, the return given by TH to depositors is in the form of hibah, which is voluntary.

Fadzil explained that the contractual basis for these grants is the "Wadi’ah Yad Dhamanah" (guaranteed deposit) contract. Under this arrangement, TH essentially borrows money from depositors for investment purposes. Consequently, TH cannot promise profits but rather offers voluntary returns in the form of hibah. Once a hibah is declared and credited to a depositor's account, it is considered legally received and becomes the depositor's property.

The Mufti further stated that these received hibah funds are not classified as illicit or questionable assets requiring return, as they were received based on a valid hibah agreement. This means that pilgrims who performed the Hajj using funds received through these hibah grants during the specified period need not worry, as their pilgrimage is considered valid and unaffected.

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Therefore, when a hibah that has been declared has been deposited into the depositor's account, it is considered to have occurred qabd (possession) and its hukum (law) is valid as the depositor's property.

This ruling provides assurance to TH depositors who may have received hibah during periods of financial difficulty for the institution. The emphasis on the voluntary and contractual nature of the hibah underscores its legal standing and the depositors' rightful ownership.

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For the pilgrims who have completed their Hajj using hibah funds during that period, there is no need to worry because it is valid and unaffected.