The Public Accounts Committee (PAC) on Thursday (July 4) released its report on the efficiency of Human Resources Development Corporation (HRD Corp), saying that PAC had found weaknesses in the HRD Corp management, among them suspicious real estate deals and high-risk investments.
One of the suspicious real estate deals was the purchase of Menara Ikhlas for RM202.5mil in Feb 2021, where RM120mil was paid upfront as deposit to a company called Crystal Clear Technology.
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One of the suspicious real estate deals was the purchase of Menara Ikhlas for RM202.5mil in Feb 2021, where RM120mil was paid upfront as deposit to a company called Crystal Clear Technology.
Read more at https://shorturl.at/7fGmS
WATCH MORE: https://thestartv.com/c/news
SUBSCRIBE: https://cutt.ly/TheStar
LIKE: https://fb.com/TheStarOnline
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NewsTranscript
00:00Through the proceedings, HRDPSC found that the amount of levy received by HRDCOP has increased significantly,
00:14i.e. RM2.134 billion in 2023 compared to RM475 million in 2020.
00:24This significant increase is due to the expansion of the PSMB Act 2001 on 1 March 2021,
00:33in which the receipt of levy has been obligated to all sectors of the industry.
00:38Through the proceedings, HRDPSC found that the amount of levy not used by employers in two years will be categorized as unutilized levy.
00:50This tempo is seen to be too short in which it cannot fully support small and medium-sized enterprises to use the training funds.
00:59It should be noted that HRDPSC is not an investment institution.
01:04However, the PSMB found that HRDPSC has invested in various investment activities by using levy funds such as put and call options.
01:15This investment is highly risky and can expose HRDPSC to high risk of losses.
01:22In addition, the PSMB also found that there are weaknesses in managing HRDPSC,
01:28such as poor management and management procedures,
01:31suspicious acquisition and acquisition of real estate, or resulting in losses to HRDPSC.
01:39As a result of the proceedings, the PSMB has made 15 summaries.
01:44I estimate that the 15 summaries are the most numerous so far.
01:47The significance of this report is that it investigates the use of employee funds,
01:57which were collected by HRDPSC,
02:00and the use of the funds amounting to more than $2 billion in 2023.
02:07This is very significant because the amount will increase every year.
02:12And we want to make sure that this disbursement fund is for employees to conduct training.
02:23This is the purpose of HRDPSC's disbursement.
02:26It does not deviate from the original purpose of training.
02:30And the money or the levy should be used for training, not as an unutilized fund.
02:41So we have an issue with the definition of an unutilized fund used by HRDPSC.
02:48So that this fund is used for training, not for investment.
02:53The way they disburse the money to become an unutilized fund,
02:58needs to be changed by HRDPSC.
03:03It is important to re-study so that HRDPSC's body is formed into a legal body.
03:13Like EPF, Prakiso, so that the monitoring will be closer, better, and more transparent.
03:25So after this, in three months, we will sit down again to proceed with the procedure.
03:36So we want to know what actions have been taken by KSUMA, MOF, or any parties involved
03:44that we have mentioned in our show to take action.
03:48On 3rd October last year, PASI decided to investigate HRDPSC.
03:55And we were not informed that the State Audit Office was also conducting an audit.
04:02So today, fortunately, two reports were published on the same day.