MMA president Dr Azizan Abdul Aziz said the association had written to HRD Corp in 2022, seeking clarification on the requirement for private general practitioners to pay levy.
“We received a reply confirming the requirement. We are now deeply disappointed to learn that the collected levies paid by businesses have been mismanaged,” she said in a statement.
Yesterday, the 2024 auditor-general’s (A-G) report revealed that HRD Corp is owed RM205.42 million in mandatory levies by a total of 21,058 employers.
The report also said there had been a trend of outstanding levies rising year-on-year, from RM72.47 million in 2020 to RM96 million in 2021, RM141.77 million in 2022, and RM183.87 million last year.
On top of the RM183.87 million owed in 2023, RM21.55 million in levies was owed by inactive employers whose companies had shuttered or been dissolved.
HRD Corp said the high amount of outstanding levies was partly because the scope of the Human Resources Development Act 2001 had widened from March 2021.
The company also said many employers were unaware of the need to pay the levies, while some had financial issues or were in the process of rebuilding their business following the Covid-19 lockdowns.
However, the A-G’s report said HRD Corp had failed to carry out its responsibility to collect the levies.
While HRD Corp’s finances were considered stable, the report noted dissatisfaction with its governance, saying seven out of nine good governance principles set by the company were not being fully practised.
Azizan said the levies paid represent hard-earned income from businesses, entrusted with HRD Corp for the development of talent.
“Private GPs now feel cheated upon hearing about the issue. There are around 11,000 registered private GP clinics nationwide. About 80% of private GPs are solo practitioners,” she said.
“Under these circumstances and until full accountability is established, we believe it is unfair for businesses to continue making payments to HRD Corp pending a full investigation by the authorities.”