Independent board to be set up to deal with complaints on Human Resource Development Fund

PETALING JAYA: Human Resources Minister M. Kula Segaran said an independent board will be set up to look into complaints regarding the Human Resource Development Fund (HRDF) and, if there is a need, a forensic audit will be conducted on the organisation, after a town hall meeting which saw training providers roasting HRDF officials.
In addition, the selection and approval process for the consolidated pool fund, which 30% of the levy collected from employers are channelled into, will be reviewed. In 2017, some RM712 million was collected as levy, of which RM480.46 million was disbursed. The pool fund stood at RM198.316 million as at 2017. The allocation is earmarked for HRDF’s human capital strategic initiatives.
“In the last 13 days of my office, I have gotten far more love letters about this organisation compared to others,” Kula said.
The two-hour long town hall meeting saw disgruntled training providers bring up issues of lack of transparency pertaining to tenders, lack of engagement and quality of training providers commissioned by HRDF.
One participant alleged that tenders by HRDF have seen participation by their own board members, in a clear case of conflict of interest.
HRDF CEO Datuk CM Vignaesvaran Jeyandran, who was in attendance, acknowledged that the organisation was short staffed and is unable to deal with complaints channelled to the organisation within 48 hours, as stipulated.
“I agree communications should be better set up but we are in the midst of expanding our manpower, because for one million trainings that we do, we only have 300 people working to do the one million coverage. So we are in the midst of expanding our manpower, we will definitely speed up the process and open a communication line,” he said.
Kula said he has instructed the secretary-general, Dr Mohd Gazali Abas, to look into a mechanism that would enable complaints and feedback be channelled online, as both the Ministry of Human Resource and HRDF have websites, in the name of transparency.
Meanwhile, Kula said if allegations of board members being involved in tenders are found to be true, they will be removed from the board on Monday.
“If any of the board members are confirmed to be a service provider, on Monday he will be removed,” said Kula.
Vignaesvaran said HRDF board members were appointed by the former minister, Datuk Seri Richard Riot, and are representatives of trade associations who pay levy, as provided for under the PSMB Act 2001.
He said he has provided Kula with a “review” of the current board members of HRDF.
On another note, Kula said action will be taken against errant HRDF-registered employers who default on their levy payments. Currently, only 50% of registered employers are contributing.
Firms registered with HRDF with more than 10 employers are subject to a levy amounting to 1% of their employees’ monthly wages, whereas those with between five and nine employees are subject to a 0.5% levy. The levy covers 63 sub-sectors in the services, manufacturing as well as mining and quarrying sector.