HRD Corp should use PAC findings to beef up governance of funds, says MEF

KUALA LUMPUR: The Human Resource Development Corporation (HRD Corp) should take into account audit findings from the Public Accounts Committee (PAC) to beef up governance of its funds, says the Malaysian Employers Federation (MEF).

"We hope these audit findings will strengthen HRD Corp’s governance of the fund. We need better quality people in management, technology and better processes,” MEF president Datuk Dr Syed Hussain Syed Husman told Bernama on Monday (July 8).

Syed Hussain was commenting on the PAC’s findings of weakness in HRD Corp management due to dubious real estate deals and high-risk investments.

According to reports, the PAC also said there was no Bank Negara Malaysia representative in the investment panel, which is against the Human Resources Development Fund Act 2001.

"As the funds are getting bigger, we need more competent investment-related people in the committee,” he said, adding that HRD Corp’s act allows them to set up an investment committee.

Syed Hussain said that with better management and a better focus on training and development, HRD Corp would be one of its kind in the world.

"As a member of the ILO (International Labour Organisation), we have not found any country that has set up such a fund. Malaysia is a leader in this area of talent development.

"Hence, HRD Corp can only get better and become a role model for Human Resources development,” he said.

Syed Hussain also noted that despite the ongoing investigation by the Malaysian Anti-Corruption Commission (MACC) following the PAC findings, credit should be given to HRD Corp for achieving a stable financial position, as acknowledged in the PAC Report 2/2024.

HRD has recorded a cumulative profit of RM389.95mil as at Dec 31, 2022.

Syed Hussain said that HRD Corp’s financial stability will help strengthen its human capital training programmes, which are needed by companies operating in Malaysia.

"Congratulations to HRD Corp’s management for this achievement. We, the management, will always collaborate to develop the country’s economy, especially in the strengthening of human capital, which is a core requirement of business operations,” he added.- Bernama