The Lembaga Tabung Haji (TH) will remain under the jurisdiction of the Prime Minister's Department, said the Prime Minister's Office (PMO).

It said speculations that TH would be transferred to the Finance Ministry were false and baseless.

The PMO said the speculations arose following the cabinet’s decision to transfer TH's underperforming assets to a government-owned special-purpose vehicle (SPV).

"TH remains under the jurisdiction of PM's Department, and this has not changed with the introduction of the SPV as agreed in the cabinet meeting," it said in a statement today.

PMO said the transfer was part of the effort to normalise TH's financial recovery.

TH is also placed under the supervision of Bank Negara Malaysia, it said.

Bank Negara, as an independent body, and under the leadership of governor Nor Shamsiah Mohd Yunus, regulates all banks and financial institutions within the country, including Islamic financial institutions, it added.

- Bernama