Human Resource Development Corporation (HRD Corp) steps up governance reforms, suspends three (3) members of top management following Public Account Committee (PAC), the Auditor- General and Malaysian Anti-Corruption Commission (MACC) reports.
This action is taken due to findings and recommendations contained in the reports of the PAC, the Auditor-General and the MACC concerning the management of ‘unutilised levy’, the acquisition of Menara Ikhlas and HRD Corp’s equity investment management, as well as a recent discovery relating to the New Core System (NCS), which involved a procurement amounting to RM14 million and has been delayed for more than four (4) years following three
(3) unsuccessful User Acceptance Tests (UATs).
HRD Corp’s Chief Executive, Dato’ Shamir Aziz said, these governance and recovery measures are being implemented in line with the aspirations of the Minister of Human Resources, YB Dato’ Sri Ramanan Ramakrishnan who 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 the ‘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 highlighted.
For record, within the first week of the new Chief Executive’s appointment, HRD Corp successfully secured approximately 18% settlement of its outstanding structured investment portfolio, together with the corresponding return amounting to RM151.8 million, reflecting 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 timeframe 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.
At present, the absence of systematic monitoring for approved training programmes has weakened governance controls and oversight. There have also 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 in strict accordance with new and enhanced policies that will be instituted, as well as established approval conditions and regulatory requirements.
HRD Corp is confident that these improvements will strengthen compliance, accountability and good governance, in line with the aspirations of Malaysia MADANI, particularly the pillars of Well-being, Social Justice, Empowerment and Compassion in ensuring that the benefits of national development are felt across all segments of society and industry.
