HRDF pledges cooperation to authorities on alleged misappropriations

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KUALA LUMPUR (June 13): The Human Resources Development Fund (HRDF), which says in a statement today that it is aware of the many allegations made on social media and the press against it on fund misappropriation, says it takes all allegations seriously and will give its full cooperation to the Human Resources Ministry and relevant authorities in related investigations.

"Due to such allegations, particularly on social media, a town hall meeting was called on June 7, 2018 where [HRDF] Registered Training Providers were invited to meet and voice their concerns directly to the Human Resources Minister M Kula Segaran.

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

"As a result of the town hall, the Minister's commitment was to set up an independent panel to look into matters raised as part of efforts at promoting transparency and accountability," the statement read.

It also said it is aware that a report has been filed against them with the Malaysian Anti-Corruption Commission (MACC) yesterday by SG Education Group chief executive officer Datuk Seri Ganes, and that it will take action based on its legal counsel.

"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 organisation said.

It also assured employers who are contributing levy that their funds are secure and that they can continue to utilise their contribution for the up-skilling, re-skilling and multi-skilling of their employees, apprentices and trainees.

HRDF was given the mandate by the Malaysian Government to catalyse the development of competent local workforce that will contribute to Malaysia's vision of becoming a high-income economy.

Employers contribute 1% of the monthly wages of their employees as Human Resources Development levy. Employers who contribute to HRDF are eligible to access their levy payments by claiming training reimbursements through various training schemes that are implemented by the organisation.

The Edge Financial Daily reported today that Ganes had submitted evidence of an alleged misappropriation involving some RM300 million belonging to the HRDF to the MACC yesterday.