PAC outlines 11 ways governance can be improved

KUALA LUMPUR: The Human Resources Ministry should study the need for Human Resources Development Corporation (HRD Corp) to be made into a statutory body, says the Public Accounts Committee (PAC).

Its chairman Datuk Mas Ermieyati Samsudin said this following the discovery of several issues related to poor governance and mismanagement at HRD Corp.

“The ministry should study the need for HRD Corp to be made into a statutory body to ensure better governance by referring to the Attorney General’s Chambers, the Public Service Department and the Finance Ministry,” she said here yesterday.

She said this was part of the 11 suggestions made by the PAC to HRD Corp.

Among the other suggestions was for HRD Corp’s board of directors to review the levy transfer method and unutilised levy funds to ensure the interests of small and medium enterprises (SMEs) are maintained.

“HRD Corp needs to take proactive steps to find alternatives for SMEs to use its contribution money before it is categorised as an unutilised levy,” she added.

Mas Ermieyati said HRD Corp should ensure its investment activities are monitored by its investment panel and board of directors to ensure transparency and better management.

“The panel must report investment activities to the board of directors when asked, as mentioned in the Human Resources Development Fund Act 2001.

“The Human Resources Ministry should also play a bigger role in monitoring and scrutinising deals signed between HRD Corp and third parties, as well as the programmes implemented.

“Get the views of the Human Resources Ministry’s legal adviser if needed,” she added.

Mas Ermieyati said the ministry should review and amend the Human Resources Development Fund Act 2001 so that a Bank Negara Malaysia representative will not be required to be appointed to its investment panel.

“This is since Bank Negara is of the opinion that this matter goes against its role as a regulator,” she added.

She also called for the ministry to appoint an independent consultant to carry out forensic auditing on the effectiveness of programmes under HRD Corp.