KUALA LUMPUR: The Federation of Malaysian Manufacturers (FMM) has called for firmer actions to be taken to further strengthen the governance and management of the Human Resource Development Corporation (HRD Corp).
FMM president Tan Sri Soh Thian Lai said that based on some of the glaring findings in the reports by the Auditor General's and Public Accounts Committee (PAC), it is imperative for greater accountability in the management of HRD Corp, the sole custodian of the human resources development fund.
"The dissatisfaction with its governance as highlighted in the Auditor General's report reveals that more profound structural changes within the HRD Corp are required to improve the transparency and efficiency of the organisation.
"The same goes for the need to address the identified weaknesses and gaps in governance, with the audit and compliance mechanisms must be further strengthened to ensure financial integrity and proper use of funds," he said in a statement.
Soh said it is proposed that a thorough review of the Human Resources Development Act 2001 be commissioned, including the possible removal of the investment portfolio and giving the authority to the board of directors to have a say on the appointment of the organisation's chief executive.
In the statement, Soh said FMM commended Human Resources Minister Steven Sim for his swift action to bring the matter up to the Malaysian Anti-Corruption Commission (MACC), as recommended in the Auditor General's report.
"This proves that he is taking the matter seriously towards addressing the findings conscientiously and restoring the public trust in the HRD Corp.
"It is also acknowledged that under the leadership of the minister, since being appointed in December last year, HRD Corp has started taking steps towards overhauling its financial management."
This includes the separation of accounts to ensure that the levies collected from employers are used solely for training and not for other purposes.