HRD Corp fails to nullify suit over training course 'conspiracy'
As a result, the Kuala Lumpur High Court is set to hear the merits of the civil action brought by two certified training providers.
The duo’s counsel Baljit Singh Sidhu...
The Human Resource Development Corporation (HRD Corp) failed to strike out a lawsuit over an alleged conspiracy involving 26 training programmes.
As a result, the Kuala Lumpur High Court is set to hear the merits of the civil action brought by two certified training providers.
The duo’s counsel Baljit Singh Sidhu confirmed with Malaysiakini that the civil court dismissed HRD Corp’s striking-out bid recently.
The two plaintiffs - Egraduate Net Sdn Bhd and Gangsa Abadi Sdn Bhd - claimed HRD Corp was involved in the conspiracy to transfer 26 training programmes from them to another firm, Smart Trends International Sdn Bhd.
The two firms claimed this resulted in them incurring financial losses.
According to a copy of an affidavit backing the nullification bid, HRD Corp CEO Shahul Hameed Shaik Dawood rubbished the allegation.

He contended the present civil action was an attempt by the plaintiffs to sidestep an earlier failed lawsuit over a similar claim five years ago.
Shahul claimed the plaintiffs hid this outcome from the present civil court.
He pointed out that the present suit violates the principle of res judicata, which bars the hearing of an identical action already decided by the court.
“I wish to emphasise that the contentions against PSMB (HRD Corp) are untrue, not bona fide (not in good faith), baseless, and the plaintiffs have no reasonable cause of action,” Shahul said in the affidavit sighted by Malaysiakini.
He pointed out that HRD Corp had already lodged a report with MACC in 2019 over alleged fraud by Smart Trends International.
He noted that HRD Corp previously sued the company in 2020, but withdrew the action as MACC was still carrying out an investigation.
Established under the Human Resources Development Act 2001, HRD Corp is tasked with promoting skilled workforce development through a systematic and inclusive training ecosystem.
It was previously known as the Human Resources Development Fund (HRDF).
Alleged RM26m payment
On June 22 last year, Egraduate Net and Gangsa Abadi filed the writ of summons against several defendants, among them HRD Corp and Smart Trends International.
The two plaintiffs claimed their director stumbled on documents allegedly showing HRD Corp officers were among those involved in the transfer of the 26 training programmes.
Egraduate claimed that three of the programmes - Professional Diploma in Scaffolding Planning, Design, and Fabrication for Oil and Gas Industry; Professional Diploma in Petroleum Industry Management Oil & Gas Technology; and Professional Diploma in Scaffolding - saw HRD Corp paying RM26,410,759.22 to Smart Trends International for the company to conduct them between June 3, 2016 and Jan 24, 2018.
In its statement of defence, Smart Trends International rubbished the conspiracy claims.
The company is represented by law firm Wong & Kiu.
Law firm Lewis & Co is acting for HRD Corp.
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