This article first appeared in The Edge Malaysia Weekly on July 15, 2024 - July 21, 2024

The mismanagement at Human Resources Development Corporation (HRD Corp) highlighted in the Auditor General’s Report 2/2024 is yet another reminder that constant vigilance is necessary to stamp out corruption.

Unlike the reputational blow when the 1Malaysia Development Bhd scandal made global headlines, losses from the mismanagement of funds meant to train the country’s talent pool are multifold. Perpetrators are not just stealing money from Malaysians today but also robbing the local workforce of the better wages they may command in the future when they have the skills to fill higher-paying jobs. Mismanagement of money meant to train and provide better security to the workforce also robs the country of its economic potential.

The government, through the Ministry of Human Resources, is rightly appointing a professional third-party auditor to ensure transparency in the independent audit of HRD Corp. Investigations should cover the put-and-call option agreement the government agency entered into with Widad Group Bhd that resulted in massive investment losses.

On top of the third-party audit, the ministry must also lodge a report with the commercial crime unit of the police as there could have been a criminal breach of trust by the top leadership of HRD Corp. The Malaysian Anti-Corruption Commission should also launch investigations into the matter.

This is a chance to show that the government is serious about improving the management of the country’s finances. If wrongdoers are not made accountable, doubt will be cast on the unity government’s pledges to do better than past administrations in this aspect.

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