PETALING JAYA: The Human Resource Development Corporation (HRD Corp) is still not out of the woods, says Tan Sri Azam Baki.
The Malaysian Anti-Corruption Commission (MACC) chief commissioner clarified that the investigation covers several aspects of HRD Corp’s operations, contrary to recent reports suggesting the case had been closed.
“I was informed about the report from an online portal regarding the Public Accounts Committee (PAC) meeting, where an officer was quoted as saying that the case has been closed.
“I do not know which angle this officer was referring to.
“We have opened several files on HRD Corp, and all investigations are still ongoing,” Azam told reporters after closing the national-level International Anti-Corruption Day celebration here yesterday.
He was asked to clarify news reports that the MACC had cleared HRD Corp of wrongdoing.
The investigation was initiated after the Human Resources Ministry submitted documents related to audit reports on HRD Corp for review, to determine if any corruption had taken place.
The MACC formed a task force and questioned 10 individuals as part of its investigation into potential governance issues.
Suspicious real estate deals and high-risk investments were among the issues identified by the PAC in its report on HRD Corp.
One such deal was the purchase of Menara Ikhlas for RM202.5mil in February 2021, where a deposit of RM120mil was paid upfront to a company named Crystal Clear Technology.
In a follow-up report, the PAC questioned the policy of forfeiting unutilised levy contributions from employers if not used within two years, arguing that it does not adequately protect the interests of small and medium enterprises (SMEs).
The PAC recommended that the Human Resources Ministry and HRD Corp redefine “unutilised levy” to prevent misuse of pooled funds.
“PAC still believes that categorising levies not used within a two-year period as unutilised levies is too short a time frame and does not protect the interests of SMEs,” the committee stated.
“Therefore, HRD Corp, or its board of directors, is advised to be more committed to reviewing the two-year period to ensure SMEs’ interests are preserved.”
HRD Corp, in its feedback to the PAC, said that proactive measures had been taken to ensure funds from the unutilised levies would be distributed to SMEs more efficiently.
The corporation added that it had engaged with stakeholders to find alternatives for SMEs to use employer contributions before they are categorised as unutilised levies.
As of September, HRD Corp reported having conducted 3,308 engagements to increase employer participation in enrolling their employees in upskilling courses.
This resulted in a 32% increase in participation, with approved financial incentives of RM660.44mil, a 35% increase compared to last year.
