Under watch: A file photo of the HRD Corp building in Kuala Lumpur. HRD Corp has been involved in several controversies over the years, including real estate deals and high-risk investments that were highlighted by the PAC in its 2024 report.
Action comes after audits involving management, stalled RM14mil project
KUALA LUMPUR: The Human Resource Development Corp (HRD Corp) has suspended three of its top management following adverse reports from three bodies.
The action was taken based on findings and recommendations contained in reports by the Public Accounts Committee (PAC), Auditor-General and Malaysian Anti-Corruption Commission (MACC), the agency said.
“It concerned the management of unutilised levy, the acquisition of Menara Ikhlas and HRD Corp’s equity investment management,” it said in a statement.
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“It extended to a recent discovery relating to the New Core System, which involved a procurement amounting to RM14mil which has been delayed for more than four years following three unsuccessful user acceptance tests,” according to the statement.
Its CEO Datuk Shamir Aziz said these governance and recovery measures were being implemented in line with the aspirations of Human Resources Minister Datuk Seri R. Ramanan.
“He has emphasised a higher standard of integrity, transparency and accountability in workforce institutions, ensuring that HRD Corp’s stewardship translates into real, measurable outcomes for employers and Malaysian workers, consistent with ‘Madani Bekerja’.
“For this purpose, HRD Corp will implement an internal investigation process that is transparent and conducted with integrity, with a clear mandate, scope and terms of reference.
“This will include the review of documents, financial records, approvals, meeting minutes and relevant audit trails, as well as the taking of statements and verification of facts from relevant officers, subject to the principles of natural justice and the confidentiality requirements of the investigation,” he said.
The statement said within the first week of the new CEO’s appointment, HRD Corp successfully secured approximately 18% settlement of its outstanding structured investment portfolio, with the corresponding return amounting to RM151.8mil.
“This reflects accelerated recovery efforts while transitioning towards a more capital-protective investment approach.
“Moving forward, to ensure strong governance and effective monitoring, the implementation of approved training programmes must only take place after a minimum period of 21 days to three months from the approval date.
“This time frame provides employers and training providers with sufficient lead time to undertake proper planning and preparation, including venue booking, participant registration and the coordination of logistical arrangements,” said HRD Corp.
It said the absence of systematic monitoring for approved training programmes had weakened governance controls and oversight.
“There have been instances where training programmes were conducted prior to approval, with grant applications submitted only after the training had taken place.
“To address these gaps, HRD Corp will progressively strengthen its monitoring and enforcement framework by deploying officers on the ground to oversee the implementation of training programmes.
“This approach is aimed at reinforcing compliance, accountability and good governance, while ensuring that all approved training activities are carried out strictly in accordance with new and enhanced policies that will be instituted, as well as established approval conditions and regulatory requirements,” it added.
HRD Corp said it was confident that these improvements would strengthen compliance, accountability and good governance.
“This is to ensure the benefits of national development are felt across all segments of society and industry,” it said.
HRD Corp has been involved in several controversies over the years, including real estate deals and high-risk investments that were highlighted by the PAC in its 2024 report.
The Auditor-General’s Report 2024 also flagged the suspicious disbursement of training grants totalling RM51.69mil, with more than 200 participants having identical names or ID numbers.
The report also stated that HRD Corp had outstanding levies totalling RM205.42mil as of Dec 31, 2023.
In May last year, the MACC presented the findings of its probe into HRD Corp over the management of levy collections and investments.
