KUCHING: The Sarawak United People’s Party (SUPP) has urged Human Resource Development Corporation (HRD Corp) chairman Datuk Abu Huraira Abu Yazid to swiftly implement his pledged reforms this year after the government entity failed its audit.
SUPP secretary-general Datuk Sebastian Ting in a statement expressed his disappointment and grave concern regarding the shortcomings of HRD Corp as highlighted in the Auditor-General’s (AG) and Public Accounts Committee (PAC) reports released on July 4.
“The reports revealed that HRD Corp has been utilising a significant portion of the levy it collected from companies for risky investments, funds which should have been exclusively used for employee training.
“This could amount to misuse or mismanagement of funds, as money intended for workers has been diverted to other ventures.
“More alarmingly, the PAC, chaired by Datuk Mas Ermieyati Samsudin, noted that these investments were high-risk, including put and call options, which could expose HRD Corp to significant losses,” he said.
Ting therefore stressed the need for urgent reforms, which include introducing a strategic initiative account, separate from the levy trustee account, to ensure better transparency and efficiency in financial management.
He further highlighted the substantial increase in levy collection, which rose from RM475 million in 2020 to RM2.13 billion in 2023. Given these significant amounts, he stressed the heightened need for transparency and accountability in handling these funds.
“Transparency and accountability are crucial to ensure that public money is used effectively, efficiently, and ethically.
“These principles enhance public trust, identify and eliminate inefficiencies and waste, and deter potential corruption and misuse of funds,” he added.
Ting further noted PAC’s findings of weaknesses in HRD Corp’s management, including poor governance and dubious property deals, which could lead to financial losses for the company.
“We take comfort in HRD Corp’s emphasis that levies collected from employers should be used to train their employees. We hope this will remain the core focus of HRD Corp moving forward.
“As Abu Huraira has pointed out, HRD Corp must continue improving to effectively fulfill its mandate of developing the nation’s human capital,” he said.
Looking ahead, Ting suggested that the Federal Government ensure all Government-Linked Companies (GLCs) appoint non-executive independent directors from the private sector to their boards, constituting at least one-third of the board.
“This measure would help ensure accountability and transparency in GLC operations.
“We anticipate positive developments from HRD Corp in the coming months and years,” he added.
