There is an urgent need to execute reforms to prevent further losses and improve the management of training grants and investments in Human Resources Development Corp (HRD Corp) in view of the Auditor-General’s recent report which red flagged significant mismanagement and financial irregularities in that organisation.

1) Enhance Supervision and Accountability: Establish an independent audit committee to supervise financial transactions, including training grants, investments, and property acquisitions to ensure compliance with governance standards and promptly report any irregularities.

2) Strengthen Governance and Compliance Frameworks: Revise and strengthen governance policies to align with international best practices, ensuring transparent decision-making and protection of organisational interests.

3) Review and Restructure Investment Strategies: Conduct a comprehensive review of HRD Corp’s investment portfolio, focusing on risk mitigation, diversification, and alignment with organisational goals and risk tolerance.

4) Implement Stringent Grant Disbursement Controls: Introduce rigorous controls and identity verification processes for eligibility criteria and training grant disbursements. Utilising advanced data analytics to detect and prevent duplication and, flagging  suspicious activities promptly can prevent duplication and misuse of funds.

5) Enhance Communication and Transparency: Improve transparency by enhancing communication with stakeholders and regular publication of audited financial statements and performance reports to provide visibility into HRD Corp’s financial health and operational efficiency.

Tackling the findings of the Auditor-General’s report and taking decisive actions to reform HRD Corp’s operations will restore public confidence, safeguard HRD Corp’s integrity, and ensure the effective utilisation of funds for human capital development initiatives.

The Auditor-General’s Report had highlighted that RM50 million in training grants were disbursed to the same individuals multiple times, while 234 grants awarded under Skim Gerak Insan Gemilang from 2020 to 2023 were deemed “suspicious (meragukan)”.

Alan Ou
MCA Federal Territories Young Professionals Bureau Deputy Chairman

5 July 2024

-MCA Comm-