PKR MPs express concern over independent audit of HRD Corp

Four PKR MPs have questioned the Human Resources Ministry’s decision to appoint an independent firm to audit Human Resource Development Corporation (HRD Corp).

In a press conference, Pasir Gudang MP Hassan Abdul Karim, along with William Leong (Selayang), Wong Chen (Subang) and Chiew Choong Man (Miri), said that the Human Resources Ministry’s move provides opportunities for others to dispute the Auditor-General's Report.

Expressing their concerns for the possible consequences of the ministry’s action, the four urged the ministry to explain its decision.

"We would like to ask the ministry to clarify that the independent auditor is not there (at HRD Corp) to give a second opinion or to evaluate all of the Auditor-General’s Report's findings, but rather to suggest better governance methods, documentation and procedures.

"We are also concerned by some news reports that convey the message that the report does not need to be accepted or approved by government agencies, and that these agencies are free to appoint and receive third-party opinions.

"This will open up opportunities for ministries and other government agencies to dispute the Auditor-General’s Report and weaken the auditor-general," Hassan (above, centre) said.

On July 10, Human Resources Minister Steven Sim said that his ministry intends to appoint a professional auditor to audit HRD Corp to ensure the body's transparency.

This follows findings from the Auditor-General’s Report and Public Accounts Committee (PAC) regarding irregularities in HRD Corp's operations from 2019 to 2023.

In the report, Auditor-General Wan Suraya Wan Mohd Radzi said that HRD Corp had failed its audit.

HRD Corp weaknesses

Hassan said the four MPs had met with former HRD Corp chief operating officer Ariff Farhan Doss in Parliament beforehand to get his feedback on the corporation.

“We were also informed of the weaknesses in the Human Resources Development Act 2001, which were the source of these (HRD Corp’s) weaknesses.

“This includes Section 50 of the act regarding the minister’s absolute power and the centralisation of the power of the chief executive, who is also a member of HRD Corp's board of directors and the investment panel," he added.

Yesterday, Ariff told Malaysiakini that he tried to meet with at least two different human resources ministers to alert them of issues at the agency but was “blocked”.

Ariff, who was sacked in May, said despite being the company’s second-in-command, he was not invited to meetings with the ministers.

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COMMENT | What was untruthful about news reports on HRD Corp?