KUALA LUMPUR — The Malaysian Anti-Corruption Commission (MACC) has cleared the management of the Human Resource Development Corporation (HRD Corp) of any wrongdoing.
MACC investigating officer Mohd Fuad Sedet was recorded saying this in transcripts of inquiry proceedings by Parliament’s Public Accounts Committee (PAC) into HRD Corp
“The investigation division (of MACC) has opened an investigation paper (into the matter). From the investigation paper, (we found) that there were no offences found to have been committed under the MACC Act 2009.
“We have passed the investigation paper to (MACC’s) governance investigation department,” Fuad was quoted as saying in PAC’s report on HRD Corp released today.
In July, MACC began its investigation of HRD Corp, following irregularities outlined in the 2024 Auditor-General Report, which focused on corruption, abuse of power, and the misappropriation of funds.
HRD Corp was found to have invested in various high-risk investment activities, such as through a put and call option using levy funds collected from employers.
The revelation that HRD Corp has been cleared wrongdoing comes after Human Resources Minister Steven Sim told the Dewan Rakyat last month that its CEO, Datuk Shahul Hameed Shaik Dawood, who took garden leave in July, had returned to work.
PAC’s report on HRD Corp released today was to follow-up on its earlier inquiry into the agency after the irregularities were flagged.
PAC outlined several recommendations to HRD Corp and to the Human Resources Ministry, such as to review and to amend existing laws governing the agency.
This includes a proposal not to have Bank Negara Malaysia’s (BNM) officials appointed as member of HRD Corp’s investment panel as this clashes with the central bank’s role as a regulator.
Additionally, the committee also recommended that HRD Corp ensure every investment activity is monitored by the investment panel and its board of directors (BOD) in a more transparent, organised manner.
PAC also reiterated its recommendation in July to make HRD Corp a federal statutory board. However, the Human Resources Ministry said that the proposal was met with skepticism from the Public Service Department which cited the potential increase in costs incurred by the government as the agency’s staff will be made into public servants. – December 9, 2024