Hassan Karim (PH-Pasir Gudang) said while the 2024 auditor-general’s (A-G) report recommended that the ministry refer HRD Corp’s management to enforcement agencies, reporting the matter to the Malaysian Anti-Corruption Commission (MACC) was insufficient.
Earlier today, MACC officers visited HRD Corp head office and the human resources ministry to seize documents related to investigations, which were launched after the A-G’s report and another from the Public Accounts Committee (PAC) were released last Thursday.
“I propose the (human resources) minister (Steven Sim) take immediate action by suspending or terminating the relevant management personnel, specifically the CEO (Shahul Hamid Shaik Dawood), who holds dual roles in HRD Corp’s board of directors and the investment panel,” Hassan told the Dewan Rakyat.
“It is not sufficient for the minister just to report this matter to the MACC because the alleged offences committed by HRD Corp’s management involve not only corruption, but also criminal breach of trust.
“The A-G recommended that these irregularities be reported to law enforcement agencies, not just the MACC. In this context, there are two law enforcement agencies: the MACC and the police. Therefore, I believe the element of criminal breach of trust must be considered (by the police).”
The A-G’s report revealed issues such as a questionable RM120 million property deal and poor governance in HRD Corp’s investments of RM3.73 billion – which resulted in unrealised losses of RM49.38 million from 29 investment transactions.
Among the other revelations in the A-G’s report were that more than RM50 million in training grants were disbursed to the same person multiple times, and HRD Corp’s investment panel failed to report substantial investment activities to its board of directors.
In the report, auditor-general Wan Suraya Wan Radzi described HRD Corp’s corporate governance as “unsatisfactory”, adding that its management’s decisions “did not follow procedures and did not protect its interests to achieve its objectives”.
A separate report by the PAC also revealed that the company’s investment panel had not reported its investment activities to its board of directors, with levies collected aggressively used for high-risk investments.
Meanwhile, PAC member Sim Tze Tzin (PH-Bayan Baru) today proposed that Shahul be placed on garden leave pending the results of MACC’s probe.
“It’s nothing personal, but I feel the CEO should take garden leave in line with the investigation. This is necessary as it will restore the public’s confidence and trust in HRD Corp,” he told the Dewan Rakyat.
“This must be done so that the investigation can proceed. If the top management or CEO are found not to be at fault, they can return. But for now, it’s best to let the enforcement agencies carry out their duties.”
Last Friday, the ministry’s secretary-general Khairul Dzaimee Daud said there was “no need for any (HRD Corp) officers to be suspended” as the MACC was conducting an investigation.
In a Bernama report, he said suspensions would only be imposed if the ministry launched an internal investigation into the matter.