Move follows reports by MACC, PAC and auditor-general
PETALING JAYA: The Human Resource Development Corporation (HRD Corp) has suspended three members of its top management following findings and recommendations cited in reports by the Public Accounts Committee (PAC), auditor-general and the Malaysian Anti-Corruption Commission (MACC).
In a statement issued yesterday, HRD Corp said the action relates to issues involving the management of “unutilised levy”, the acquisition of Menara Ikhlas, equity investment management and a New Core System (NCS) procurement project valued at RM14 million.
It added that the NCS project has been delayed for more than four years following three unsuccessful User Acceptance Tests.
The system had previously been introduced as part of HRD Corp’s digital transformation efforts to modernise its core systems supporting grant processing, levy management and employer services.
“For this purpose, HRD Corp will implement an internal investigation process that is transparent and conducted with integrity, with a clear mandate, scope and terms of reference.
“This will include the review of documents, financial records, approvals, meeting minutes and relevant audit trails, as well as the taking of statements and verification of facts from relevant officers, subject to the principles of natural justice and the confidentiality requirements of the investigation.”
The move comes within weeks of a leadership transition at the agency.
On Jan 23, Datuk Mohamed Shamir Abdul Aziz was appointed chief executive with immediate effect, while his predecessor Dr Syed Alwi Mohamed Sultan only served in the role for about six months after his appointment in July 2025.
HRD Corp had earlier expressed appreciation to Syed Alwi for his service but did not provide details on his departure.
HRD Corp administers employer levy contributions under the Human Resources Development Fund, which are channelled towards training, retraining and skills upgrading for employees, apprentices and trainees under the Pembangunan Sumber Manusia Berhad Act 2001.
The fund is financed through mandatory employer levy contributions and is a key mechanism supporting national workforce training and reskilling initiatives.
However, HRD Corp has been under formal scrutiny since 2024.
On July 4, 2024, PAC tabled a report in Parliament highlighting governance concerns involving real estate transactions and high-risk investment activities undertaken by HRD Corp.
A day later, the Human Resources Ministry submitted information to MACC following issues raised in the Auditor-General’s Report Series 2/2024 and the PAC review.
The 2024 report had flagged the suspicious disbursement of training grants amounting to RM51.69 million, with more than 200 participants recorded under identical names or identification numbers, and noted outstanding levy collections totalling RM205.42 million as of Dec 31, 2023.
On May 11, 2025, MACC presented findings of its probe into HRD Corp, examining matters related to the management of levy collections and investment activities, although no full report has been made public.
The suspensions mark the most direct internal administrative action to date following the audit findings, parliamentary scrutiny and enforcement examination.
HRD Corp did not disclose the identities of the suspended officers or the expected timeline for the internal investigation.
