Sunday, November 11, 2018

Corrupt Practices @ HRDF

Human Resources Minister M Kulasegaran (left) said yesterday that the much-abused Human Resources Development Fund will return to their core business of training to upskill the workforce and that the 30% consolidated fund levy deduction of registered employers had been discontinued, effective Thursday. 

(Note: The HRDF are an agency under the Human Resources Ministry that manage a fund for human resource training and development that were contributed by employers. 

Of the 1% HRDF levy deduction from companies with more than 10 employees and 0.5% from businesses with five to nine employees, 70% is claimable by companies for training purposes, while 30% is held under a consolidated fund for common use, regardless of contribution, for specific training programmes decided by HRDF). 

A good decision because most employers had lamented about the lack of transparency. 

Additionally, accusations of fraud committed in the name of training were levelled at HRDF. 

Kula, who initiated a five-member independent Governance Oversight Committee to review and probe the allegations, revealed that high-ranking HRDF staff had misappropriated about RM100 million or about a third of the RM300 million from the said fund. 

The abuses highlighted: (1) some management staff members were overpaid with high salaries and bonuses; (2) some training providers and a number of HRDF management personnel abused the fund in the name of training to purchase commercial properties; (3) large sums of money were diverted without the authorization of the HRDF board; (4) some members of the HRDF board of directors failed to declare their vested interests to the board; and (5) there was collusion between managerial staff and external parties to award contracts. 

These not only represent a defiant dereliction of duties and responsibilities – but also corrupt practices including criminal breach of trust. 

With the cessation, the monthly HRDF levy deduction, which was initiated in 2016 and governed by the Pembangunan Sumber Manusia Berhad Act 2001, would still be applicable on registered employers, allowing companies more funds to train their workforce. 

Kula said that whoever had committed wrongs – action will be taken against them, whether through civil and/or criminal indictments. To this end, two police reports had been lodged based on the GOC findings. 

Najib Razak’s Malaysia – Truly and Utterly Corrupted!

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