FRESH from the recent Prolintas scandal, Malaysians were once again greeted with allegations of corruption involving another high profile GLC (government-linked company) in their newsfeed.

In the latest financial scandal to rock the country, the Auditor-General’s Department has urged the government to investigate the top management of the Human Resource Development Corp (HRD Corp) for its audit failure. The company falls under the purview of the Human Resources (HR) Ministry.

In its report released yesterday (July 4), Auditor-General Datuk Wan Suraya Wan Mohd Radzi recommended that the HR Ministry refers HRD Corp’s management to the appropriate authorities due to instances of mismanagement.

“The ministry must take appropriate action against HRD Corp’s management for the identified mismanagement by reporting the matter to the relevant enforcement agency,” she stated in the report.

Auditors discovered mismanagement involving hundreds of millions of ringgit related to training grants, investments and property acquisitions. HRD Corp’s current CEO Datuk Shahul Hameed Sheikh Dawood has held his position since 2020.

Staggering loses

The audit also revealed poor governance in HRD Corp’s investments amounting to RM3.73 bil which resulted in unrealised losses of RM49.38 mil. These funds originated from the Human Resources Development Fund (HRDF), which pools employer levy contributions.

Additionally, more than RM50 mil in training grants were repeatedly disbursed to the same individuals while over 200 grants were flagged as “suspicious” by the auditors.

From 2020 to 2023, 234 grantees under the Skim Gerak Insan Gemilang were considered suspicious due to inconsistencies such as the same identity card number being used under different names or the same name appearing under different identity card numbers.

“In general, the corporate governance of HRD Corp is unsatisfactory. Decisions made by HRD Corp management did not follow procedures and failed to protect the corporation’s interests in achieving its objectives,” the treasury report concluded. The audit covered the period from 2019 to 2023.

In the meantime, HR Minister Steven Sim Chee Keong has said his ministry has no problem if any other bodies wish to conduct further investigations following the Auditor-General’s report.

As reported in Bernama, Sim said his ministry will not tolerate any violations of the law and has instructed its secretary-general Datuk Seri Khairul Dzaimee Daud and Shahul to lodge a report with the Malaysian Anti-Corruption Agency (MACC) over the alleged wrongdoings.

This latest episode highlights a few pertinent issues.

‘Fish rots from the head’

Firstly, as recommended by the Auditor-General, the government has been urged to take action against “HRD Corp’s management”. So why is Sim directing its head honcho to lodge a report to the MACC?

The report had made it abundantly clear that the HRC Corp’s management is complicit in the many wrongdoings. Shouldn’t Shahul be suspended pending these investigations?

Perhaps, someone should remind Sim of the age-old adage that the ‘fish rots from the head’.

Secondly, these leakages are nothing new. From incidences of government departments purchasing stationary at exorbitant prices to misallocation of public funds, Malaysians have become used to such news to the point that such malpractices are to be expected.

The sense of deja vu was apparent among many netizens who expressed dismay at this latest scandal.

One commenter lamented that this would be another case where it will just fade from the public eye over time

One netizen’s succinct observation perhaps best summed up the prevailing mood.

Only time will tell if the Madani administration is serious about stamping out corruption or will this just be the latest of abuse of taxpayer monies that will be swept under the carpet. - July 5, 2024 

https://focusmalaysia.my/hrd-corp-failed-audit-is-symptomatic-of-malaysias-prevailing-culture-of-corruption/