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Firm action must be taken to strengthen HRD Corp’s governance, management: manufacturers | Scoop
FMM President Tan Sri Soh Thian Lai said that profound structural changes within the HRD Corp are required to improve the transparency and efficiency of the organisation. – FMM Facebook pic, July 5, 2024
News

Firm action must be taken to strengthen HRD Corp’s governance, management: manufacturers

Federation of Malaysian Manufacturers (FMM) emphasises need for greater accountability in management of HRD Corp funds

Scoop Reporters
Updated
5:35 PM MYT

 

KUALA LUMPUR – The Federation of Malaysian Manufacturers (FMM) calls for firmer actions to be taken to further strengthen the governance and management of the Human Resource Development Corporation (HRD Corp) following the findings of the Auditor-General (A-G) and Public Accounts Committee (PAC).

FMM President Tan Sri Soh Thian Lai, in a statement today, said that the glaring findings in the reports showed a need for greater accountability in the management of HRD Corp funds and stronger oversight by the board to ensure compliance with the provisions of the Pembangunan Sumber Manusia Berhad Act 2001 (PSMB Act 2001) and established procedures and guidelines.

“The dissatisfaction with its governance as highlighted in the A-G’s report reveals that more profound structural changes within the HRD Corp are required to improve the transparency and efficiency of the organisation and the need to address the identified weaknesses and gaps in governance.

“At the same time, the audit and compliance mechanisms must be further strengthened to ensure financial integrity and proper use of funds,” he said.

Soh also proposed that a thorough review of the act be commissioned, including the possible removal of the investment portfolio and granting the board the authority to have a say on the appointment of the chief executive of the organisation.

Meanwhile, FMM commended Human Resources Minister Steven Sim Chee Keong for his swift action in bringing the matter to the Malaysian Anti-Corruption Commission (MACC) as recommended in the A-G’s report.

“It showed that he (Sim) is taking the matter very seriously towards addressing the findings conscientiously and restoring the public trust in the HRD Corp.

“Since he was appointed in December 2023, HRD Corp has started taking steps towards overhauling its financial management including the separation of accounts to ensure that the levies collected from employers are used solely for training and not for other purposes,” Soh added. – July 5, 2024

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