KUALA LUMPUR: The Public Accounts Committee (PAC) has highlighted discrepancies in testimonies from two senior officers of the Human Resources Development Corporation (HRD Corp).
This was regarding the engagement of an event management company previously owned by its chief executive officer (CEO).
The company in question, My Events, was owned by HRD Corp's CEO Shahul Hamid Shaik Dawood, before his appointment in April 2020.
According to the PAC report, chief financial officer (CFO) Farizul Yahaya informed the committee on Jan 18 that HRD Corp utilised event management companies for some internal programmes, naming My Events as one of these companies in response to a query from Sim Tze Tzin (PH-Bayan Baru).
However, Shahul Hamid, in his testimony, denied My Events' involvement in organising HRD programmes to avoid conflicts of interest, given his past ownership in the company.
Responding to Sim's inquiry, Shahul asserted, "I understand the concern, but I would never make that kind of costly mistake.
"Allowing My Events to manage HRD Corp events would be a conflict of interest, and I have always avoided such situations," the PAC report quoted him as saying.
He firmly stated that My Events had not undertaken any events for HRD Corp, offering to resign within 24 hours if proven otherwise.
Shahul said such allegations should be supported by factual evidence, underscoring the organisation's adherence to corporate ethics and governance.
When questioned about the possibility of My Events working as a subcontractor, Shahul clarified that while major contractors in the industry might know him due to his extensive experience, he had strictly prohibited event management companies from organising HRD Corp events to reduce costs.
Shahul said that 70 per cent to 80 per cent of HRD Corp's events were managed internally, with external parties only engaged for necessary equipment, all within procurement guidelines overseen by the CFO.
The PAC report noted discrepancies between Shahul and Farizul's testimonies concerning My Events' involvement with HRD Corp.
HRD Corp, tasked with advancing Malaysia's talent development through employer levies for training programmes, was found to lack oversight in its investment activities.
The PAC's findings indicated the investment panel failed to report to the board of directors, leading to risky investments.
PAC chairman Mas Ermieyati Samsudin revealed that since 2017, no representative from Bank Negara Malaysia had been on HRD Corp's investment panel, violating the Human Resources Development (HRD) Act 2001.
The report also highlighted irregular procurement procedures for land purchases and incomplete documentation provided to the board for several transactions.
The Malaysian Anti-Corruption Commission is investigating issues from the 2024 Auditor-General's report, which recommended the Human Resources Ministry refer HRD Corp's management to enforcement agencies following an audit failure.
The report criticised HRD Corp's management for procedural non-compliance and neglecting the company's interests.