KUALA LUMPUR, Dec 16 — The latest financial scandal of alleged mismanagement within Lembaga Tabung Haji (TH), the savings fund for Muslim pilgrims, could be the sword the Pakatan Harapan (PH) government needs to unite the country’s majority population to snuff out Umno, the main party in the Opposition Barisan Nasional (BN).

However, the issue could also turn against the ruling coalition if handled wrongly.

Analysts note that Umno, together with the Islamist party PAS, have been attempting to use the scandal to galvanise support from the nine million TH depositors by swaying confidence in the institutions and the protection of Malay and Muslim rights.

"It can be an effective issue for PH on the Malay ground but it bears the risk of a potential collapse of trust of the institution,” political analyst Amir Fareed of KRA Group told Singapore paper The Sunday Times in an article today.

The weekend edition of The Straits Times quoted another analyst Norshahril Saat, who pointed out that public trust in PH is not yet secure.

“PH needs to ensure governance is clean and efficient, while maintaining Malaysia's identity as multiracial with a strong Malay Muslim character.

“The issue could be used as political ammunition by PH, particularly on what 'defending' Malay rights mean.”

The Yusof Ishak Institute fellow indicated that PH will need to work on winning public trust in the transparency of its administration even as it grapples with scepticism among the Malay Muslim community.

“But reversing race and religious politics remain a tall order as there is significant support for Umno and PAS' call for the protection of Malay and Muslim rights,” Noorshahril was quoted saying.

Earlier this month, the two political groups jointly organised a massive rally in the capital city that saw tens of thousands demonstrate against the International Convention on the Elimination of All Forms of Racial Discrimination, which the government was forced to cancel after promising to ratify the UN treaty.

Islamic Religious Affairs Minister Datuk Seri Mujahid Yusof Rawa last week revealed a massive RM4.1 billion “hole” in TH when he announced the fund had been paying out dividends to depositors illegally since 2014 due to its liabilities surpassing its assets.

TH has since filed police reports against its former chairman Datuk Seri Abdul Azeez Abdul Rahim, former chief executive officer Tan Sri Ismee Ismail and Datuk Seri Johan Abdullah and senior management personnel following allegations of involvement in pilfering depositors’ money.