A MANUFACTURERS group wants a review of the law that governs the Human Resource Development Corporation (HRD Corp), following management irregularities highlighted in the Auditor-General’s Report 2/2024. 

The Federation of Malaysian Manufacturers president Soh Thian Lai said firm and swift action needed to be taken to improve the management of HRD Corp. 

Soh said this included structural changes to improve transparency and efficiency within the organisation as well as tackling weaknesses in its governance. 

“At the same time, it is critical for audit and compliance mechanisms to be further strengthened to ensure financial integrity and the proper use of (HRD Corp’s) funds. 

“It is also proposed that a thorough review of the Human Resources Development Act 2001 be commissioned, including possibly removing the investment portfolio and giving the board of directors a say on the appointment of the organisation’s chief executive,” he said in a statement. 

Currently, he noted, the CEO of HRD Corp is appointed by the human resources minister. 

In its report released yesterday, the Auditor-General Wan Suraya Wan Mohd Radzi said HRD Corp had failed an audit because of management irregularities. He had recommended that the ministry report the management of the government entity to enforcement agencies for action. 

The National Audit Department had scrutinised HRD Corp’s operations from 2019 to 2023. 

In the report published yesterday, Auditor-General Wan Suraya Wan Mohd Radzi said auditors had found that hundreds of millions of ringgit for training grants, investments, and property purchases were mismanaged, 

More than RM50 million in training grants were disbursed to the same person multiple times, she said. 

“Overall, the corporate governance of HRD Corp is unsatisfactory. Decisions made by HRD Corp management did not follow procedures and did not protect its interests to achieve its objectives,” she said in the report. 

It said the HRD Corp investment panel failed to report substantial investment activities to its board of directors. 

The report also revealed that the board did not have a Bank Negara Malaysia representative, which is a violation of the Human Resources Development Fund Act 2001. 

The Human Resources Ministry today reported management irregularities at HRD Corp to the Malaysian Anti-Corruption Commission (MACC), following publication of the Auditor-General’s Report 2/2024. 

The ministry’s secretary-general, Khairul Dzaimee Daud, said the move aligned with the auditor-general’s recommendations to report findings to the enforcement agencies. 

“Earlier today, I went to the MACC office (in Putrajaya) and submitted a report containing the issues raised by the auditor-general, along with feedback from the ministry and HRD Corp, an agency under our ministry mentioned in the Auditor-General’s Report.” 

“The MACC has assured us that it will conduct a thorough and professional investigation into the matter,” he told a press conference today. – July 5, 2024.