KUALA LUMPUR (Dec 9): The Malaysian Anti-Corruption Commission (MACC) found no wrongdoing within the Human Resource Development Corporation (HRD Corp).
No offences under the MACC Act 2009 had been committed, according to investigators cited in a Public Accounts Committee (PAC) report on the government agency.
"We have opened an investigation paper,” Mohd Fuad Sedet, an investigation officer from the MACC, was quoted as saying in the report. “Based on our findings, no offences under the MACC Act were identified.”
HRD Corp came under scrutiny in July, after reports by the auditor general and the bipartisan PAC highlighted various instances of alleged mismanagement, including suspicious disbursements, questionable property transactions, and risky investments.
Following the twin reports, the MACC deployed investigators to HRD Corp’s office to collect documents as part of its probe. The graft-buster has said it would focus its investigation on the investments, management of training funds, and property acquisitions by HRD Corp.
During a separate PAC proceeding on Nov 3, Fuad confirmed that one of the investigation papers involved the “acquisition of a building”, although he did not provide further details.
One of the key issues raised in July was HRD Corp’s involvement in dubious property deals, most notably the purchase of a RM154 million six-storey building in Bangsar South without board approval.
Cabinet halted independent auditor appointment
The latest PAC report also revealed that the Cabinet stopped the Ministry of Human Resources (MOHR) from appointing an independent auditor to review the Auditor General’s Report on HRD Corp.
“We received instructions from the Cabinet not to obstruct the auditor general’s findings,” Datuk Hajah Norison Ramli, the deputy secretary general (policy and international) of the MOHR, said in response to questions on why the independent audit report was not presented to the PAC.
The ministry had announced on July 10 the appointment of a third-party auditor to ensure transparency in auditing HRD Corp, following the PAC and auditor general’s reports.
Nevertheless, Bayan Baru Member of Parliament Sim Tze Tzin, one of the PAC members, clarified that the PAC’s recommendation for a forensic audit was to evaluate the effectiveness of HRD Corp’s training programmes.
“There seems to be some misunderstanding about the external audit,” Sim noted. “The purpose of the audit is to review the training programmes, not to reaudit the Auditor General’s Report or the PAC’s findings.”
The PAC has reiterated its call for the ministry and HRD Corp to conduct the independent audit and present the findings to the committee.
PAC recommends CEO as ex-officio role
The PAC also recommended that the position of the chief executive officer at HRD Corp to be an ex-officio participant in board meetings, rather than as a full board member.
Under the Pembangunan Sumber Manusia Bhd (PSMB) Act 2001 (Act 612), the CEO is appointed by the minister to the board and serves on the investment panel.
“Typically, the CEO is not a board member but serves as an ex-officio,” said Sim. “However, weaknesses in this Act, including conflicts of interest, have contributed to issues at HRD Corp.”
In response, Datuk Azman Yusof, the secretary general of the MOHR, said that the board of HRD Corp had approved the formation of a joint working committee to review the PAC’s recommendations, including amending Act 612.
“The draft amendments are expected next year, likely within the first half of the year,” Azman added.