PETALING JAYA: Human Resources Minister Steven Sim has had to clarify allegations of misusing RM51.7 million in Gerak Insan Gemilang training grants after another criticism was levelled against the Human Resource Development Corporation (HRD Corp).
The matter was again highlighted by the National Audit Department’s report on HRD Corp, and in his denial, Sim said the funds were distributed to 315 training providers and not allocated to a single company.
“Allegedly, RM51.69 million was spent on one company with 3,726 repeat participants. Let me correct the understanding of some parties on this issue. In reality, this RM51.69 million involves 315 training provider companies.
“Additionally, 84% of the 3,726 participants, or approximately 3,132 individuals, actually attended repeat courses for free only two to three times within a single year.
“Thirdly, 17 participants attended more than 10 times within a year, but we are addressing this issue through a digitisation system which will reject repeated names in the future. This improvement has already been implemented,” he told Parliament.
However, the Auditor-General’s report claimed the disbursement was “suspicious”, with some recipients supposedly repeating the courses 16 times. The report also noted that 234 participants were suspicious as they had logged identical names and identification numbers.
In calling on the public not to overreact to the allegations and claims, Sim said action would be taken against anyone found guilty, regardless of their position.
“We have demonstrated our commitment and determination by taking immediate action and being held accountable to the public,” he said.
Meanwhile, the ministry has announced that it would conduct an independent audit of HRD Corp following findings by the Public Accounts Committee (PAC) and the audit department.
“A third-party professional auditor would be appointed to audit HRD Corp to ensure transparency in the independent audit, following the Auditor-General’s and PAC reports on the company’s operations from 2019 to 2023,” Sim said.
He stressed that the third-party professional auditor would be appointed by July 31 to review all processes and documentation and ensure procedures are followed to the letter moving forward.
In backing Sim’s move to conduct an independent audit of HRD Corp, PAC chairman Datuk Mas Ermieyati Samsudin welcomed his proactive actions as it proved Sim kept his promise to be transparent.
“This is the right move to restore the public’s trust in the government’s Company Limited by Guarantee. The issues reported by the PAC and Auditor-General’s Report occurred before Sim became the human resources minister.
“However, his willingness to appoint an independent audit firm based on the findings should be an example to other Cabinet ministers.”
Mas Ermieyati said while there were actions and decisions made by HRD Corp’s management that did not comply with procedures or safeguard the interests of achieving the company’s founding functions, these matters will be looked into.
The PAC was also reported to have revealed that RM3.77 billion in levy collections from employees were used by the HRD Corp Training Programme to invest in various activities that were not among the agency’s intended objectives.
On this, Mas Ermieyati said the PAC wants the findings and results of the independent audit to be presented to the committee when the ministry and HRD Corp are recalled for follow-up proceedings this September.
