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HRD Corp scandal: calls for urgent reforms echo in Parliament | Scoop
After the Auditor-General's Report revealed irregularities in its governance, lawmakers in the Dewan Rakyat today emphasised the need for HRD Corp to adopt a revamped business model in order to restore public trust. – Radzi Jidin Facebook pic, July 18, 2024
News

HRD Corp scandal: calls for urgent reforms echo in Parliament

Datuk Seri Radzi Jidin cites corporation as agency that holds govt funds but lacks comprehensive, detailed internal control

Updated
3:40 PM MYT

 

KUALA LUMPUR – The Human Resource Development Corporation (HRD Corp) needs to improve its business model to regain public confidence and positively impact the country’s economy moving forward.

The Public Accounts Committee’s report on HRD Corp, which was presented in the Dewan Rakyat for the first time, was well received and debated by parliamentarians from both sides.

Datuk Seri Radzi Jidin (Putrajaya-PN) said in the context of corporate governance, HRD Corp acts as an agency that holds government money and lacks holistic and detailed internal control.

“If this is not checked from time to time, it will continue.

“There was a report in 2018 on HRD Corp’s situation, but nothing happened.

“In 2023, the corporation received RM2 billion in levy, and this amount will increase from year to year. Therefore, holistic accountability must be established because it involves people’s money,” he added.

Radzi also urged the PAC to look into Global Infrastructure Partners’ 30% minority stake in Malaysia Airports Holding Bhd (MAHB) following the committee’s thorough investigation of HRD Corp.

“The PAC chairman said that their jurisdiction is the widest, compared to other parliamentary committees, and therefore I would like to suggest that they look into the sale of the MAHB’s 30% minority to ensure that this matter is handled properly and with proper governance,” he added.

Paya Besar MP Mohd Shahar Abdullah also said that HRD Corp needs a new business model following findings of misappropriation.

“Not only must the quality be as recommended by the PAC, but HRD Corp also needs a new business model. This is important because a decline in human capital development will affect the country,” he added.

He said that the management of government-linked companies (GLCs) and companies limited by guarantee (CLBGs) must embody the spirit of the Malaysian people.

“We need leaders in GLCs and CLBGs who have a strong sense of purpose, as people’s money is used to empower and support them,” he added.

Meanwhile, Datuk Seri Bung Moktar Radin (Kinabatangan-BN) interjected Shahar, saying that the HRD Corp misppropiation case was a daylight robbery.

The PAC previously revealed a levy collection totaling RM3.77 billion from employers using HRD Corp in various investment activities.

Earlier this month, the Auditor-General’s Report on HRD Corp highlighted irregularities, such as the alleged misuse of levies collected from employers meant for training purposes that were instead spent on investments and asset purchases. – July 18, 2024

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