By Firmer action needs to be taken to further strengthen the governance and management of the Human Resource Development Corporation (HRD Corp).
The Federation of Malaysian Manufacturers (FMM) made this call on Friday as they feel it’s imperative for greater accountability in the management of HRD Corp funds and stronger oversight to ensure compliance with the law and established procedures and guidelines, FMM said in a statement today.
“At the same time, it is critical for the audit and compliance mechanisms to be further strengthened to ensure financial integrity and proper use of funds,” the FMM, which carries a membership of over 3,000 manufacturing and industrial services companies in Malaysia, said.
The findings reveal that “more profound structural changes” are needed to improve HRD Corp and address weaknesses and gaps, it added.
FMM’s call for firmer action comes about following investigations into HRD Corp by the Public Accounts Committee (PAC) and the auditor general (AG), which highlighted a series of mismanagement and unusual transactions that included suspicious disbursements, dubious property deals, and risky investments.
Human Resources Minister Steven Sim Chee Keong said on Friday he had directed a report to be filed to the Malaysian Anti-Corruption Commission following the release of the twin reports on Thursday. He said the ministry had also taken steps to ensure that the issues raised would not happen again.
The actions show that Sim is “taking the matter very seriously towards addressing the findings conscientiously and restoring the public trust in HRD Corp”, the FMM said. The trade body also acknowledged that HRD Corp had taken steps towards overhauling its financial management.
A thorough review of the Human Resources Development Fund Act should also be commissioned, including the possible removal of the investment portfolio and giving the authority to the board to have a say on the appointment of the chief executive of the organisation, the FMM said.
