KUALA LUMPUR – Parliament’s Public Accounts Committee (PAC) will hold a follow-up session with representatives from the embattled Human Resources Development Corporation (HRD Corp) on November 20.
PAC chairman Datuk Mas Ermieyati Samsudin (Masjid Tanah-PN) said that HRD Corp is expected to update the committee on actions taken following the PAC’s report on the corporation, which was presented in Parliament on July 4.
“We’re not done with HRD Corp yet. This follow-up will allow us to gather feedback from relevant parties on the recommendations we made,” the Bersatu MP told a press conference in Parliament today.
In its extensive three-volume report, the PAC highlighted issues of weak governance within HRD Corp and suspicious procurement methods involving real estate, which could have led to significant financial losses for the corporation.
HRD Corp used a total of RM3.77 billion in levies collected from employers for training development programmes to make investments worth RM3.84 billion at market value as of March 2024, the report said.
Besides failing to report its investment activities to its board of directors, HRD Corp’s investment panel did not include a representative from Bank Negara Malaysia since 2017, a violation of the Pembangunan Sumber Manusia Bhd Act 2001.
PAC’s report was made public the same day as the Auditor-General’s (A-G) Report 2/2024, which also looked into HRD Corp’s operations from 2019 to 2023.
The A-G’s report recommended that the ministry take appropriate action against HRD Corp management by referring them to enforcement agencies, while the PAC suggested that the ministry reevaluate the power granted to the commission’s chief executive officer.
The actions and decisions by HRD Corp’s management, the audit report said, did not comply with procedures and failed to protect the interests necessary to achieve the corporation’s objectives.
Following the release of the reports, Human Resources Ministry secretary-general Datuk Seri Khairul Dzaimee Daud and HRD Corp chief executive officer Datuk Shahul Dawood submitted a report to the Malaysian Anti-Corruption Commission (MACC).
The anti-graft agency then confirmed that the probe into HRD Corp would be focused on elements of alleged corruption, power abuse, and fund misappropriation.
Shahul initially announced a voluntary administrative leave on July 18 to facilitate the MACC investigation but has reportedly since returned to office.
PAC held proceedings into 1MDB asset recovery commitments
On a separate matter, Mas Ermieyati said the PAC will summon Investment, Trade and Industry Minister Datuk Seri Tengku Zafrul Tengku Abdul Aziz (Senator-BN) for his testimony as part of proceedings related to 1Malaysia Development Bhd (1MDB).
Besides Zafrul, who will be summoned as he was finance minister between 2021 and 2022, his predecessor Lim Guan Eng (Bagan-PH) will also be called for the proceedings expected to be held in the third week of November.
Former Treasury secretary-general Datuk Seri Asri Hamidon and representatives from the law firm Rosli Dahlan Saravana Partnership are also required to attend the proceedings to explain their efforts to secure 1MDB assets when they were part of the 1MDB task force.
Mas Ermieyati said that the PAC had already recorded statements from current Treasury secretary-general Datuk Johan Mahmood Merican and 1MDB task force lead Datuk Seri Johari Bin Abdul Ghani (Titiwangsa-BN), who is also the plantation and commodities minister.
“During the proceedings which lasted for approximately two hours, the PAC had heard about the government’s efforts to obtain 1MDB assets as well as (details on) financing 1MDB’s debt amounting to RM9.456 billion,” she added.
In an audit report published in October, the A-G revealed that the government channelled RM39.74 billion in grants to 1MDB between 2019 and 2023, covering principal repayments and bond interest.
The A-G also recommended asset recovery from domestic and foreign sources related to 1MDB and its former subsidiary SRC International Sdn Bhd. – November 6, 2024