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KUALA LUMPUR: High-ranking staff of the Human Resource Development Fund (HRDF) misappropriated about RM100mil or about a third of the RM300mil in the fund.
While some management staff members were overpaid with high salaries and bonuses, some training providers and a number of HRDF management personnel misused the fund in the name of training to purchase commercial properties.
Large sums of money were diverted from the authorizations of the HRDF and there was collusion between managerial staff and external parties to award contracts.
Human Resources Minister Mr. Kulasegaran revealed these wrongdoings at a meeting with representatives of employers and HRDF-registered employers yesterday.
He said that some members of the HRDF board of directors also did not declare their vested interests to the board.
"There have been wrongdoings, such as abuse of duties.
"(They were) running (the HRDF) as though it was their own company," he said.
Kulasegaran, who initiated a five-member independent Gover-nance Oversight Committee (GOC) to review and probe the allegations, said that there were elements of fraud in the misuse of the fund in the name of training.
The HRDF is an agency under the auspices of the Ministry of Human Resources and the Ministry of Human Resources.
Regarding the alleged misappropriation of the fund, Kulasegaran said that the HRDF was only informed after the money was spent.
"Out of RM300mil," said RM100mil, "he said, adding that some departmental officers, in other instances, also exceeded their authority and approved projects beyond their authorized limit.
When asked, Kulasegaran said that some staff was involved in the wrongdoings while still holding positions in the agency, while some had left.
"After the Pakatan Harapan government took over, three directors have since resigned.
"If they have anything wrong, action will be taken against them. We will let the process take place. It is not fair at this juncture to make allegations, "he said, adding that two police reports have been made based on the GOC report.
KULASEGARAN KULASEGARAN KULASEGARAN KULASEGARAN.
"After this, I hope the HRDF management will make the agency transparent and accountable to the public," he said.
Meanwhile, the HRDF organization told The Star that in the week before the town hall, three senior figures within the organization were subject to domestic inquiries and released from the company.
Another three senior members were recently contracted and their contracts expired.
A key figure implicated in the scandal resigned soon after GE14.
"Some senior figures have survived, but there is a definite clean-up exercise under way," said the source.
In some cases, those due to leave their place of business and their place of business.
The sources said, and those who are in the money and who are not
"A lack of accountability on the HRDF led to certain figures treating it like a personal piggy bank," said the source.
He said, "The leadership is in the easy way out."
"The rot runs deep, and the money runs into billions," he said. "That's why there was no choice but to stop the 30% policy and fix the system before restarting it."
The source said that a key figure is implied in the wrongdoings used in such practices and poor appraisals.
Some of the questionable property transactions may have involved property in Bangsar South, said the source.
Related story:
HRDF will get right down to business, says Kulasegaran
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