This article first appeared in The Edge Financial Daily on June 14, 2018

KUALA LUMPUR: The Human Resources Development Fund (HRDF) says it takes the allegations made against the agency seriously and pledges its full cooperation to the human resources ministry and relevant authorities.

It also assures employers who are contributing levy that their funds are secure and they can continue utilising their contribution for the upskilling, reskilling and multi-skilling of their employees, apprentices and trainees.

In a statement yesterday, HRDF said it is aware of claims on social media and in the press of alleged misappropriation of funds.

“Due to such allegations, particularly on social media, a town hall meeting was called last Thursday where [HRDF] registered training providers were invited to meet and voice their concerns directly to Human Resources Minister M Kulasegaran.

“Also present were Ministry of Human Resources Ministry Secretary General Datuk Dr Mohd Gazali Abas, HRDF chief executive officer (CEO) Datuk CM Vignaesvaran as well as HRDF board of directors and senior management.

“As a result of the town hall meeting, the minister’s commitment was to setting up an independent panel to look into matters raised as part of efforts at promoting transparency and accountability,” said HRDF.

It added that it is also aware that a report was filed against HRDF to the Malaysian Anti-Corruption Commission (MACC) on Tuesday by SG Education Group CEO Datuk Seri Ganes, and HRDF will be taking action based on legal advice.

“HRDF would like to reiterate that it will continue to adhere to the principles of good governance. It wishes to clarify its position and clear these allegations as well as encourage comments be sent to official channels for proper measures to be taken,” the agency said.

Meanwhile, former HRDF board member RA Thiagaraja issued a separate statement to the media yesterday, saying he welcomes any investigation into him, including by the MACC.

Describing the recent attacks on him as "slanderous, unfounded and completely baseless", Thiagaraja said he would pursue legal action on the matter.

He was responding to the allegations made against his position as a board member of HRDF during the town hall session and allegations made by "a certain individual" during a press conference on Tuesday.

Thiagaraja was elected president of the Federation of Malaysian Training Providers and Technical and Vocational Training Associations (FMTA) in 2015, a position he still retains. In May 2017, he was appointed a board member of HRDF by then human resources minister Datuk Seri Richard Riot to represent the federation, its members and the industry players.

"FMTA's task is to provide input to HRDF as representatives of the industry. For the record, no funding or allocation from HRDF has been received to date by FMTA or channelled into FMTA," he said.

Noting the HRDF board also comprises other training providers from various associations, Thiagaraja said he views the action of making allegations against him alone as a personal attack.

Thiagaraja said he will fully cooperate with all relevant authorities in the investigation.

He said he submitted his resignation as a board member of HRDF last Friday, to ensure HRDF is not dragged into the controversy.