JOHOR BARU – The Human Resources Ministry (MoHR) may have to brace itself for another scandal after the Finance Ministry (MoF) discovered discrepancies in a contract procurement process valued between RM53 million to RM159.47 million a year involving a key official in the Human Resource Development Corp (HRD Corp).
According to a letter sighted by The Vibes, MoF suggested that a senior officer at HRD Corp – who also happens to be on its board – attempted to mislead MoF by suggesting that they received approval from HRD Corp’s board to proceed with a programme called “Skills Passport”.
It is understood that MoF’s letter was based on HRD Corp’s board meeting minutes dated October 6, 2022.
MoF said that the minutes made reference to a report titled “Proposal to approve Skills Passport” instead, which was allegedly inaccurate given that the board’s consent for the project was never sought.
What was reported in the meeting minutes as a PROPOSAL TO APPROVE SKILLS PASSPORT is inaccurate because it was never presented to the board.
“It is merely an update and not a presentation in the form of a working paper seeking a decision from the board,” the letter by MoF dated April 10 said.
Skills Passport is believed to be a platform where workers registered with HRD Corp can register their profile.
MoF takes issue with HRD Corp meeting minutes
Based on the letter, a company named Neomindz Sdn Bhd was picked to undertake the programme.
Further, MoF also pointed out that HRD Corp stated in meeting minutes that its board approved a partnership with Neomindz.
“I do not agree with the meeting minutes which state ‘The Board Approved to partner with Neomindz Sdn Bhd on the implementation of Skill Passport’ because no working paper was presented to the board to request their decision,” said MoF.
“Thus, I do not agree with what was written in the meeting minutes dated October 6, 2022.
“It has been found that the implementation and procurement process for the Skills Passport project is unorganised.”
This fresh controversy comes after the Malaysian Anti-Corruption Commission’s recent arrests of aides linked to Human Resources Minister V. Sivakumar over graft allegations involving migrant worker recruitment.
Last month, Sivakumar’s senior officer was arrested by MACC over the same allegations. Later, MACC proceeded to detain the minister’s private secretary while Sivakumar was also summoned for questioning.
Last week, a source told The Vibes that the termination of five officers linked to Sivakumar was done under orders from the ministry’s freshly appointed chief secretary Datuk Seri Zaini Ujang who was given the mandate to clean up the ministry and its related agencies.
Contract with inexperienced, financially weak firm?
Meanwhile, MoF also found that during an HRD Corp board meeting on March 28 this year, the senior officer told the board that HRD Corp entered into a contract with Neomindz a month earlier after allegedly receiving approval from MoHR’s Deputy Chief Secretary (Operations) Datuk Muhd Khair Razman Mohamed Annuar.
Further, when queried by the board on the costs that would be incurred from the project, the senior officer allegedly mentioned that there would be no financial implications on HRD Corp.
The senior officer added that there was no need to present a working paper to the board given that there would be no costs accrued by the agency.
“The senior officer wrote a letter to MoHR’s deputy chief secretary (operations) on February 15 to seek approval for the project and approval was obtained the following day resulting in a contract between HRD Corp and Neomindz Sdn Bhd on February 17.
“The senior officer via the letter has induced the deputy chief secretary (operations) to sign off his approval for the project when, as a member of the board, he knows that the deputy chief secretary (operations) has no power to approve the project,” the letter added.
Additional findings by MoF via a Companies Commission search revealed that Neomindz has a weak financial position with RM300,000 in capital, RM36,355 in cash reserves, and current liabilities valued at RM144,400.
The company also lacks experience given it was only established on December 5, 2019 and 50% of its shares are owned by Indian national Jayamohan Parameswaran Madhusoodhenen Nair.
This presents a risk to HRD Corp as it could divulge data and confidential profiles of workers in Malaysia to a foreign entity,” the letter said.
Massive costs to HRD Corp?
MoF also found issues with the senior officer’s representation to the board that the project would not result in HRD Corp incurring any costs.
However, the senior officer also told MoHR’s Khair Razman that HRD Corp will pay Neomindz RM12 for every use of Skills Passport – which could result in massive financial implications if the cost is borne by the agency, said MoF.
MoF said given there are 4,429,731 workers, if one individual updates their profile once a year, it would cost HRD Corp RM53.156 million a year.
However, if an individual updates their profile thrice annually, the agency would be set back RM159.47 million a year.
“During the board meeting on March 28, the senior officer misled the board by stating that the project would not result in any costs for HRD Corp,” MoF’s letter said.
“I would like to propose to the chairman and all board members that the implementation of the Skills Passport programme should be terminated. given that the implementation failed to comply with the principles of transparency and accountability in the administration of procurements and would result in major financial and legal implications for HRD Corp.”
The letter was prepared by MoF representative Datuk Rosli Yaakob, with copies sent to all HRD Corp board members.
The Vibes has withheld the identity of the individual in question pending a response from them. – The Vibes, May 7, 2023
