HRD Corp threatens to sue The Edge over PAC, audit report findings

The Human Resource Development Corporation (HRD Corp) has threatened to sue The Edge Communications Sdn Bhd and one of its writers over the daily’s reporting of the Public Accounts Committee (PAC) and auditor-general’s findings about the agency.

According to The Edge, the letter of demand was sent on the agency’s behalf by law firm Amrit & Company.

Among others, the letter alleged that the media company had “unfairly, deliberately, maliciously, recklessly published and in bad faith (malice) misquoted, sensationalised and misinterpreted the findings made by the National Audit Department”.

It said this was allegedly done in two The Edge articles, which carried the headlines: “PAC flags dubious property deals by HRD Corp”, and “Frankly Speaking: Total breach of governance at HRD Corp”.

The first article, published on July 4, reported several dubious property deals at HRD Corp, which PAC had flagged. This includes the purchase of a RM154 million building without the approval of its board.

Aside from citing the PAC report on the matter, the report also quoted PAC chairperson Mas Ermieyati Samsudin saying that there had not been a consistent standard procedural process for the approval of property acquisitions by HRD Corp and that HRD Corp’s board of directors was not given the complete documents for some property purchase transactions.

The second article was published for the week of July 8 to 14. It discussed how HRD Corp had come under scrutiny for questionable investments and property purchases, based on the findings and conclusions of the PAC and the auditor-general, and what some of those transactions involved.

According to The Edge’s report, the letter of demand claimed that its reports were designed to malign HRD Corp and its officials, and had exposed the agency, as well as its officials and employees to “odium, ridicule, contempt and public scandal which has undoubtedly tarnished the professional reputation of HRD Corp” and its appointed officials and employees.

The letter also claimed the articles suggested that HRD Corp had failed its audit, mishandled its funds, made decisions that did not follow procedures and did not protect its interests to achieve its objectives.

“Our client states that the impugned statements (reports) are false, misguided and misleading,” the law firm said, adding that the reports were made without verification with HRD Corp.

All investments ‘by the book’

HRD Corp claimed that its investment panel had undertaken all its investments in accordance with the Human Resources Development Fund Act 2001 and that they were documented and recorded according to required standard procedures and good governance.

According to the agency, its investment panel is not duty-bound to report its investment decisions to the board of directors, it has not breached any rules of governance, and it does not engage in criminal and corrupt practices.

HRD Corp sought the removal of the articles, as well as a formal written apology to be published in two English dailies and The Edge’s website within 48 hours of the date of the letter. It also wants damages for the alleged grievances it claimed it suffered.

The Edge is standing by its articles and vowed to defend any suits it may face from HRD Corp.

This, according to The Edge Media Group chief executive officer and publisher Ho Kay Tat, is because issues surrounding HRD Corp are of public interest as they involve money belonging to the country's employers and employees.

HRD Corp probe: I won't protect anyone, minister says

MACC obtains documents from HR Ministry in HRD Corp probe

PKR MP calls for HRD Corp CEO's suspension pending probe

HRD Corp: MACC forms special investigation team

COMMENT | HRD Corp's defiance, denials cannot become truth