KUALA LUMPUR: The investment panel of the Human Resources Development Corporation (HRD Corp) failed to report substantial investment activities to its board of directors (BOD), leading to a lack of oversight over its investment activities.
Based on the report revealed by the Public Accounts Committee (PAC) today, it was revealed that there was also no Bank Negara Malaysia representative as a member panel, which is a violation of the Human Resources Development (HRD) Act 2001.
"The HRD Corp investment panel did not report investment activities to its BOD, in which its management justified that the chairman of the panel is among the BOD.
"This has resulted in the BOD being unable to monitor HRD Corp's investment activities as a whole and undermining the BOD's role as the entity responsible for HRD Corp's direction," the report revealed.
In a press conference later, PAC chairman Datuk Mas Ermieyati Samsuddin said in line with the Act, a BNM representative must be appointed as one of the investment panel.
However, she said there was no representative from BNM since 2017 as such involvement of BNM as a regulator would inflict a conflict of interest.
Following this, Mas Ermieyati said the Human Resources Ministry must study and amend the current HRD Act.
"The ministry must study and amend the Act to ensure that no BNM representative shall be appointed as a member of the investment panel.
"This is as BNM believes that the matter contradicts its role as a regulator," she said.
She added that HRD Corp must also ensure that all investment activities will be monitored by the BOD in a more transparent and organised manner.
"The investment panel must report the investment activities to the BOD when requested in line with the HRD Act, and not only to the chairman who is among the BOD."
Based on the HRD Act, the investment panel of HRD Corp is responsible for managing investment and presenting investment activities to the BOD when requested to do so.