Fresh from the recent Prolintas scandal, Malaysians were again greeted with allegations of corruption involving another high profile GLC (government-linked company). In the latest financial scandal, the Auditor-General’s Department urged the government to investigate the top management of the Human Resource Development Corp (HRD Corp) for its audit failure. The company falls under the purview of the Human Resources (HR) Ministry.
In its report released on July 4, Auditor-General recommended that the HR Ministry refers HRD Corp’s management to the appropriate authorities due to instances of mismanagement.
Auditors discovered mismanagement involving hundreds of millions of ringgit related to training grants, investments and property acquisitions.
The audit also revealed poor governance in HRD Corp’s investments amounting to RM3.73 billion which resulted in unrealised losses of RM49.38 mil. These funds originated from the Human Resources Development Fund (HRDF), which pools employer levy contributions. Additionally, more than RM50 mil in training grants were repeatedly disbursed to the same individuals while over 200 grants were flagged as “suspicious” by the auditors.
From 2020 to 2023, 234 grantees under the Skim Gerak Insan Gemilang were considered suspicious due to inconsistencies such as the same identity card number being used under different names or the same name appearing under different identity card numbers.
The Minister has to lodge a police report; ‘suspend the employers’ levy for six months; remove the CEO and Board; reconstitute the Management and Board; produce a white paper on all the abuses after an internal investigation; and, invite MACC to act immediately.
This is “reformasi”. Immediate action on wrong doings not “tutup mata”. It is usually tutup satu mata but these days both eyes should be closed.
Reference:
HRD Corp failed audit is symptomatic of Malaysia’s prevailing culture of corruption, R. Bala, Focus Malaysia, 5 July 2024
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